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Credit Suisse Disruptive Technology Portfolio Mover Of The Week: Novell

And index of companies shaking up traditional business models.
Investors brutalized shares of Novell last week as the open source software maker reported disappointing progress in its much-hoped-for turnaround effort. The stock fell 23%, while the broader Credit Suisse Disruptive Technology Portfolio fell only 0.1%.

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.

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Disruptive Technology Portfolio