Home > Company > Investors > Newsletter > Sn070220


Consolidated results for the first quarter of 2006/2007 (Oct 2006-Dec 2006) and status of the Linbox acquisition

In € millions
(Oct. - Dec.)

31/12/2005 (*)

31/12/2006 (*)

Change € millions

Change %


3 months

3 months







Operating revenue





Operating result





Profit before goodwill amortization





Net result





First quarter results and comments

Current and prior period results in this announcement include Mandriva, Edge-IT, and Conectiva..

  • For the Q1 2006-2007 quarter (October to December 2006), consolidated revenue was 1.25 M€ as compared to 1.59 M€ in the comparable quarter last year.

  • Subventions to R&D projects were 0.15 M€ as compared to 0.26 M€ a year ago.

  • Operating expenses were reduced from 1.63 M€ a year ago to 1.27 M€.

  • Operating result was a negative 0.37 M€ compared to a negative 0.50 M€ a year ago.

  • After goodwill amortization for Conectiva and Edge IT, net result for the quarter is a loss of 0.50 M€ as compared to a loss of 0.59 M€ a year ago.

The year over year revenue decrease can be explained essentially by a steep decrease in consulting revenue (from 0.50 M€ a year ago to 0.16 M€ this quarter). The main part of this decrease is due to the Brazilian operation, where our main customer, BenQ which represented about 0.25 M€ per quarter, declared bankruptcy and shut down its Manaus operation. The Brazilian headcount has been quickly adjusted and the local payroll reduced by 44% over the quarter.

The retail and distributor line grew, showing the successful development of our reseller network and so did the OEM revenue driven by our Brazilian sales.

This quarter saw the shipping of Mandriva 2007: the version was well received and e-commerce sales both in revenue and numbers were comparable to that of Mandriva 2006. The Flash product, launched in November was a success.

Linbox status

On October 4, 2006, Mandriva announced it had signed an agreement to acquire Linbox FAS, a French company focused on open source infrastructure software. The acquisition was to be done by stock swap and 433,333 new shares of Mandriva stock were planned to be issued for that purpose after approval in a shareholder meeting.

Given the substantial change to Mandriva share value since then, Mandriva and Linbox have decided to put the operation on hold until they come to an eventual new agreement.

In the meanwhile, both companies believe their engineering, marketing and sales cooperation makes sense, will put in place an agreement to organize their partnership and will continue to cooperate.

Extension of annual shareholders meeting time limit

According to art. L 223-36 of the Commercial Law, the annual shareholders' meeting to approve the financials statements as of 30th September 2006 is to be convened no later than 31st March 2007.

Due to the delay resulting from the on going discussions with Linbox, the company has requested from the President of the Paris Commercial Court an extension of the time limit of the annual shareholder's meeting until 30th June 2007.

About Mandriva

Mandriva is one of the world leading editors of Linux operating systems and open-source software. The company develops and markets the Mandriva Linux operating system. Several hundred developers worldwide contribute to the constant improvement of our product via the internet and to its internationalisation (it is now available in nearly 70 languages). Mandriva also provides associated off-line services such as consultancy, training and support, alongside on-line services including technical back-up and the Mandriva Users Club.
Mandriva has its headquarters in Paris and offices in the USA and Brazil. The company is listed on the Marché Libre of Euronext Paris.

ISIN: FR0004159382
Reuters: MAKE.PA
Number of shares: 5,908,889

Contact Mandriva

François Bancilhon / Thierry Bossut
investors at mandriva dot com
Tél. : +33 (0)1 40 41 00 41