Feeds

SCO makes Unix revenue disappear in Q1

SCOsource can't crack five-figures

  • alert
  • submit to reddit

SANS - Survey on application security programs

The SCO Group continued to lose money in its first quarter, as it suffered from lackluster Unix sales and made just a few thousand bucks in licensing revenues.

SCO pulled in $8.9m during the first quarter - a major drop from the $11.4m reported in the same period one year earlier. It attributed the biggest chunk of this revenue loss to vanishing Unix product and services sales. On the plus side, SCO managed to trim its net loss to 17 cents per share - one penny better than the 18 cent per share loss reported last year.

SCO's chief Darl McBride vowed to ride out these difficult quarters, as the company awaits its blockbuster Unix/Linux IP trial with IBM.

"Despite the decline in revenue, we successfully implemented efficiency and cost reduction measures that have had a positive impact on operations and contributed to the Unix business operating profitably," McBride said. "We remain steadfastly focused on winning in both the court room and in the market place."

SCO still has $15.4m in cash and equivalents hanging around along with $4.8m in an escrow account that will go toward its mountainous legal fees.

"Our net cash position after backing out the costs of litigation that have been paid and budgeted for under our agreement with our legal counsel remains steady," said Bert Young, CFO at SCO. "Combined with the fact the Unix business is generating cash, we believe we are in a position to continue operating our core business and see the litigation through to its conclusion."

SCO plans to ship its OpenServer 6 product during the first half of this year.

A successful new product would be welcome, as SCO's current ventures aren't paying off terribly well.

During the first quarter, SCO saw total product revenue fall to $7.3m from $9.7m one year earlier. Its service revenue also dropped to $1.5m from $1.7m.

The controversial SCOsource licensing program brought in $70,000 during the quarter. That's a huge jump over the $20,000 last Q1 but hardly the type of revenue SCO had once been hoping for. The SCOsource licenses allows customers to use Linux "free and clear" regardless of what happens with IP litigation, according to SCO.

SCO managed to tighten its bottom line by making huge sales and marketing cuts and by trimming research and development costs. ®

Related stories

SCO drops filings off at SEC
Novell buys Tally Systems
SCO settles boardroom dispute with Canopy
SCO to restate three quarters of results
Captain McBride and the SCO Titanic

3 Big data security analytics techniques

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Oh no, Joe: WinPhone users already griping over 8.1 mega-update
Hang on. Which bit of Developer Preview don't you understand?
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Half of Twitter's 'active users' are SILENT STALKERS
Nearly 50% have NEVER tweeted a word
Internet-of-stuff startup dumps NoSQL for ... SQL?
NoSQL taste great at first but lacks proper nutrients, says startup cloud whiz
IRS boss on XP migration: 'Classic fix the airplane while you're flying it attempt'
Plus: Condoleezza Rice at Dropbox 'maybe she can find ... weapons of mass destruction'
Ditch the sync, paddle in the Streem: Upstart offers syncless sharing
Upload, delete and carry on sharing afterwards?
New Facebook phone app allows you to stalk your mates
Nearby Friends feature goes live in a few weeks
Microsoft TIER SMEAR changes app prices whether devs ask or not
Some go up, some go down, Redmond goes silent
prev story

Whitepapers

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.
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.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.