Feeds

SCO's profit turns to loss as Q3 revenue tumbles

All is well

  • alert
  • submit to reddit

SANS - Survey on application security programs

The SCO Group suffered a massive drop in third quarter revenue and has made moves to cut costs, rearrange legal fee agreements and counter potential takeover bids, the company announced today.

SCO's revenue fell to $11m in the period, which compares to $20m in the same quarter last year. The major reason for this decline was a result of a huge fall in sales of SCOsource licenses. SCO's "we'll get you clean" business generated only $680,000 in the third quarter compared to $7.2m last year.

SCO said it plans to continue closing some overseas offices and moving into smaller offices where possible to cut costs. In addition, it has now set a $31m cap for the fees it will pay to Boies, Schiller & Flexner for legal help in its ongoing battles against IBM, Novell and Red Hat over Linux and Unix. The law firm will now receive a larger percentage of any award SCO receives from the court battles. SCO additionally adopted what is known as a shareholder rights plan to try and offset takeover bids that might come as a result of the company's low stock price.

"We remain steadfastly committed to enforcing our intellectual property rights on behalf of our customers, employees and shareholders," said SCO CEO Darl McBride. "Through the combination of the quarter's positive developments and our current cash position, we are well-positioned to pursue our current litigation through its conclusion."

SCO's net loss for the third quarter came in at $7.4m. This figure compares to a net profit of $3m in the same period last year.

During a conference call, McBride tried to put his best spin on the results. The brightest spot for SCO in the quarter came as its Unix business returned to profitability. These sales, however, appear to have done little to improve SCO's overall bottom line. McBride also said the company remains confident that more information backing up SCO's claims against Linux will come out as the court proceedings move along and documents are unsealed.

"There is a wide gap between what IBM and SCO are looking at and what the world has seen," McBride said. ®

Related stories

SCO closes BayStar deal
IBM threatens SCO with GPL hearing
HP's Fiorina stood up by Argentina's President
IBM says SCO contract claims are an 'illusion'
IBM promises no patent assault on Linux
Neutered SCO no longer on the offensive

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.