The company, which employs 1,600 in Utah, reported net income of $11.65 million, or 3 cents per share, on $241.35 million in revenues for the quarter ending July 31. For third-quarter 2005, Novell registered net income of $2.14 million, or zero cents, on $252.4 million in revenue.

For Novell, the quarter's $12 million in sales for the computer operating system seen as the chief challenger to Microsoft's Windows was a needed lift. The company struggled to clear $9 million a year ago.

Novell executives noted Tuesday that their quarterly results were preliminary because the company has begun a voluntary review of its stock options practices. Although no irregularities have been noted, Novell said it deemed a review wise after other companies recently reported plans to adjust their accounting because of irregularities.