| Shares of open source software maker Novell Inc. sank to a new 52-week low on Wednesday after the company posted lower-than-expected fourth-quarter sales and issued disappointing 2007 guidance. The Waltham, Mass.-based company said Tuesday its fourth-quarter sales fell 15 percent to $244.9 million from $287.6 million a year ago, partly due to sluggish sales of older products. In a conference call that followed the release of fourth-quarter results, the company said in 2007 it planned to increase investment in several areas including research and development. The company also projected 2007 sales would be roughly flat with 2006. "Given Novell's decision to invest over the near term combined with an uninspiring near-term revenue outlook is likely to pressure shares over the near term," said JMP Securities analyst Denny C. Fish Jr. Fish Jr. kept his rating on the stock at "Market Perform". Shares of Novell, which have traded between $5.73 and $9.83 over the last year, were down 34 cents, or 5.4 percent, at $5.99 in afternoon trading on the Nasdaq. Earlier in the session shares fell to a new year low of $5.70. |
