SCO watches Q2 revenue and loss shrink

Marketing and sales down

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A number of cost-cutting moves helped the beleaguered SCO Group shrink its second quarter loss. But despite improving its bottom line, the software maker had little good news for investors on the sales front.

SCO's revenue hit $9.3m during the second quarter, down from the $10.1m reported in the same period last year. SCO's net loss shrunk to $2.0m during the second quarter, which compared to a net loss of $14.7m in the same period last year. The company made massive cuts to its sales and marketing budgets to save money.

Sales of SCO's Unix software and services were down during the quarter, while its SCOsource license business improved year-over-year. SCO whined about the failing Unix business at one point in its statement about the financials, only to complement the business a couple of sentences later.

"The decrease in revenue in the second quarter of fiscal year 2005 from the comparable quarter of the prior year was primarily due to continued competitive pressures on the Company's Unix products and services," SCO said.

And then.

"Our core Unix business remained profitable in the second quarter as expected, and we increased revenue over the prior quarter as a result of improved performance across all geographies," said Darl McBride, CEO at SCO. "We have continued to focus our Unix business on commercial success in the market place and look forward to launching SCO OpenServer 6 later this month. At the same time, our SCOsource business remains committed to pursuing our legal strategy in the courtroom, and we are well-positioned to see our litigation through to its conclusion."

SCO sold just $30,000 worth of its SCOsource licenses. That meager total, however, was actually up from the $11,000 in licenses sold last year.

SCO, you may have heard, is embroiled in a massive software IP battle with the likes of IBM, Red Hat and Novell. This costly war has been draining SCO's coffers for some time. ®

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