Novell is in the middle of a business transition, and investors were optimistic that its 2Q earnings report would bear news that it had begun to right the ship. They had hoped the company's Linux business would begin offsetting sales declines among its legacy products and were looking for word that cost cutting would produce a leaner Novell.
But the report showed no sign that either scenario is happening. Novell's Linux revenue totaled only $10 million, too little to compensate for its declining NetWare/OES business. Despite the company's cost-cutting plans, operating expenses rose $10 million in the quarter.
The Disruptive Technology Portfolio last week outperformed the S&P 500, which fell 1.1%.
| Disruptive Technology Portfolio | ||||
| Stock Price 6/7/06 |
% Change Weekly |
% Change Year To Date |
||
| AAPL | Apple Computer | $58.57 | -2.0% | -18.5% |
| ATYT | ATI Technologies | $15.58 | -5.6% | -8.3% |
| BIDU | Baidu.com, Inc. | $87.65 | 12.6% | 39.3% |
| BBBB | Blackboard | $25.90 | -2.2% | -10.6% |
| BRCM | Broadcom | $30.00 | -11.2% | -4.6% |
| CNQR | Concur Technologies | $14.00 | -7.1% | 8.6% |
| CRM | salesforce.com | $27.01 | -8.5% | -15.7% |
| CTSH | Cognizant Technology | $61.06 | 3.5% | 21.5% |
| DRIV | Digital River | $39.25 | -10.7% | 32.0% |
| EBAY | Ebay | $31.91 | -2.7% | -26.2% |
| GOOG | Google Inc. | $386.51 | 4.0% | -6.8% |
| INFY | Infosys | $69.30 | -1.8% | -14.3% |
| KNXA | Kenexa | $27.94 | -7.8% | 32.4% |
| MFE | McAfee | $24.15 | 2.1% | -11.0% |
| MRVL | Marvell | $47.75 | 0.2% | -14.9% |
| NOVL | Novell | $5.93 | -23.3% | -32.8% |
| NSR | Neustar | $31.74 | -1.3% | 4.1% |
| NVDA | Nvidia Corp. | $21.82 | -5.0% | 19.4% |
| RHAT | Red Hat | $26.61 | 1.5% | -2.4% |
| RIMM | Research in Motion | $64.96 | 0.1% | -1.6% |
| RNOW | RightNow Tech | $14.57 | -10.7% | -21.1% |
| TLEO | Taleo | $12.24 | 2.9% | -7.8% |
| TIBX | TIBCO, Inc. | $7.12 | -7.2% | -4.7% |
| TXN | Texas Instruments | $30.72 | -1.6% | -4.2% |
| ULTI | Ultimate Software | $22.36 | -1.5% | 17.3% |
| VRSN | Verisign | $22.59 | 0.6% | 3.2% |
| WEBX | WebEx Communications | $30.85 | -6.1% | 42.6% |
| WIND | Wind River | $9.05 | -4.2% | -38.7% |
| WIT | Wipro | $11.35 | -5.3% | -5.0% |
| YHOO | Yahoo! Inc. | $30.54 | -3.3% | -22.1% |
| DTP Index Value | 213.81 | -0.1% | -3.2% | |
| SPX | S&P 500 | 1,256.15 | -1.1% | 0.6% |
© 2006 Credit Suisse. Important disclosure information about potential conflicts of interest regarding the companies referenced above may be obtained at csfb.com/researchdisclosures, or by E-mailing [email protected] or calling 1-877-291-2683.
Disruptive Technology Portfolio
