Feeds

SCO's profit turns to loss as Q3 revenue tumbles

All is well

  • alert
  • submit to reddit

Boost IT visibility and business value

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

Build a business case: developing custom apps

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.