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Novell gets $356m from Microsoft deal

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The Devil's Advocate
As the tech industry stirs back to life following the holiday break, one item getting noticed is Novell's recent disclosure of the first-year financial benefit from its Microsoft alliance. Here's the snippet from the Linux vendor's Dec. 21 10K filing with the SEC, as spotted by Ed Moltzen of ChannelWeb:
During fiscal 2007, we received $355.6 million from Microsoft related to the Microsoft agreements discussed above, which is being recognized over future periods.​
The item is getting attention in high-profile places like Slashdot, but it's worth noting that the amount is not a surprise: It's approximately the sum of the up-front payments that Novell said it was expecting from Microsoft back in November 2006.
Also noteworthy is this snippet from the Novell filing, as reported by Barbara Darrow on Redmond Developer News.
"Revenue from our Linux platform products increased 69% year-over-year in fiscal 2007. The strength of our revenue growth was due in part to our agreement with Microsoft which was signed in November 2006."​
However, that was just within Novell's Linux Platform Products segment, a relatively small portion of the company's revenues. On a companywide basis, Novell's net revenue for its 2007 fiscal year (ended Oct. 31) was $932.5 million, an increase of 1.4 percent, and its annual loss was $44.5 million.

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