On a non-GAAP basis, income from operations for the third fiscal quarter of 2010 was $30 million. This compares to non-GAAP income from operations of $33 million in the same period last year. Non-GAAP net income for the third fiscal quarter of 2010 was $22 million, or $0.06 per share. This compares to non-GAAP net income of $25 million, or $0.07 per share, for the third fiscal quarter of 2009. A reconciliation of GAAP to non-GAAP results is provided in the financial schedules as part of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
“Our third quarter revenue was below our initial expectations, which we believe is principally related to customer uncertainty associated with the Novell Board of Directors' ongoing review of various alternatives to enhance stockholder value as described in Novell's March 20, 2010 press release,” said Ron Hovsepian, President and CEO of Novell. “However, I am pleased that we achieved consistent profitability levels. The growth prospects of our target markets remain strong and our focus going forward is on returning to top line growth via execution of our differentiated strategy, WorkloadIQTM.”
Cash, cash equivalents and short-term investments were $1 billion at July 31, 2010, up from $980 million last quarter. Days sales outstanding in accounts receivable was 66 days at the end of the third fiscal quarter of 2010, down from 71 days at the end of the year-ago quarter. Total deferred revenue was $624 million at the end of the third fiscal quarter of 2010, down from $674 million at the end of the year-ago quarter due to the recognition of deferred revenue from our agreement with Microsoft. Total deferred revenue was up from the prior year, excluding the impact of Microsoft. For the third fiscal quarter of 2010, cash flow from operations was $26 million. This compares to cash flow from operations of $30 million for the third fiscal quarter of 2009.