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NOVELL TO POST LOWER-THAN-EXPECTED EARNINGS

SHARE NOVELL TO POST LOWER-THAN-EXPECTED EARNINGS

Novell Inc. has warned its shareholders Monday the software company's fiscal third-quarter earnings, due to be released Wednesday, would not come close to matching analysts' expectations.

The announcement pushed Novell's stock down 7 percent Monday after the company made the announcement, closing down $1.121/2 at $14 on the Nasdaq exchange but rising again to $14.371/2 early Tuesday.The company said Monday that earnings would be 15 to 20 percent lower than analysts' estimates of 25 cents per share for the quarter ending July 30. But Novell still expects an improvement over last year's third-quarter profit of 15 cents per share.

Novell cited operating expenses from its acquisition in June of WordPerfect Corp. and lower than expected revenue from Word-Perfect, which brought out new consumer products during the period but will not revamp its core office programs until later this year.