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SCO's 2nd Quarter Financial Results |
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Wednesday, June 01 2005 @ 06:47 PM EDT
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Here is SCO's press release giving their financial results for the second quarter. UPDATE: Stephen Shankland does a deadpan report. Both the press release and the article are so boring, it's hard to pay attention. They lost more money. That's what I get. They say they have great hopes for the future. Here's the text of the release.
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LINDON, Utah, June 1, 2005 /PRNewswire-FirstCall via COMTEX/ -- The SCO Group, Inc. (Nasdaq: SCOX), owner of the UNIX operating system and a leading provider of UNIX-based solutions, today reported results for its fiscal second quarter ended April 30, 2005.
Revenue for the second quarter of fiscal year 2005 was $9,258,000 as compared to $10,137,000 from the comparable quarter of the prior year. 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.
The net loss attributable to common stockholders for the second quarter of fiscal year 2005 was $1,962,000, or ($0.11) per diluted common share, as compared to a net loss attributable to common stockholders of $14,726,000, or ($1.04) per diluted common share for the comparable quarter of the prior year.
"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, President and CEO, The SCO Group. "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."
Revenue for the first two quarters of fiscal year 2005 was $18,123,000 as compared to $21,529,000 from the first two quarters of fiscal year 2004. The net loss attributable to common stockholders for the first two quarters of fiscal year 2005 was $4,923,000, or ($0.28) per diluted common share, as compared to a net loss attributable to common stockholders of $17,212,000, or ($1.23) per diluted common share for the first two quarters of fiscal year 2004. Cash and cash equivalents and available-for-sale securities were $14,192,000 at April 30, 2005. In addition, $3,967,000 remains in an escrow account and is classified as a component of restricted cash as of April 30, 2005, that will be used to pay for certain expenses associated with our litigation.
UNIX Business
The Company plans to release SCO OpenServer 6 on June 22, 2005 at an event for SCO's software and hardware partners, customers, and members of the media and analyst community in New York City.
SCO OpenServer 6 has been a multi-year, multi-million dollar development effort and is the most significant upgrade in the product's history. The product has been designed to provide customers with increased performance and security enhancements, access to numerous applications, and integrates many popular Open Source technologies. The product has been in active pre-release testing since the beginning of the year with many of the Company's leading SCO OpenServer customers and has been favorably received.
Trolltech AS
On March 14, 2005, SCO sold shares of Trolltech AS it had owned since 1999 in a private transaction for total proceeds of $779,100. The Company accounted for the sale and proceeds of the sale as a component of other income in its second quarter and year-to-date statements of operations.
Conference Call
As previously announced, The SCO Group will host a conference call at 5:00 p.m. EDT today, June 1, 2005 to discuss its second quarter results. To participate in the teleconference, please call 800-818-5264 or 913-981-4910; confirmation code: 4988956, approximately five minutes prior to the time stated above. A listen-only Web cast of the call will be broadcast live with a replay available the following day. The Web cast and replay may be accessed from http://ir.sco.com/medialist.cfm. A replay of the call will also be available via the phone starting at 8:00 p.m.
Forward-Looking Statements
This press release contains forward-looking statements related to (i) the anticipation that the Company will release SCO OpenServer 6 June 22, 2005 and (ii) the Company's commitment in its SCOsource business to pursuing its legal strategy in the courtroom and seeing its litigation through to conclusion. SCO wishes to advise readers that a number of important factors could cause actual results to differ materially from those anticipated in such forward- looking statements including factors such as continued competitive pressure on its operating system products which could impact the profitability of the UNIX business, unforeseen legal costs related to the Company's litigation, the Company's inability to develop new products and services, the Company's inability to release SCO OpenServer 6 on June 22, 2005 and the Company's inability to see its litigation through to its conclusion. These and other factors that could cause actual results to differ materially from those anticipated are discussed in more detail in the Company's filings with the Securities and Exchange Commission.
About SCO
The SCO Group, Inc. (Nasdaq: SCOX) helps millions of customers to grow their businesses everyday. Headquartered in Lindon, Utah, SCO has a worldwide network of thousands of resellers and developers. SCO Global Services provides reliable localized support and services to partners and customers. For more information on SCO products and services, visit http://www.sco.com.
SCO and the associated SCO logo are trademarks or registered trademarks of The SCO Group, Inc. in the U.S. and other countries. UNIX is a registered trademark of The Open Group. All other brand or product names are or may be trademarks of, and are used to identify products or services of, their respective owners.
The SCO Group Announces Second Quarter 2005 Results
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
April 30, October 31,
2005 2004
Assets:
Cash and cash equivalents $8,145 $12,693
Restricted cash 7,974 8,283
Available-for-sale securities 6,047 18,756
Accounts receivable, net 6,325 6,638
Other current assets 2,288 1,870
Total current assets 30,779 48,240
Property and equipment, net 579 649
Intangibles, net 4,060 5,413
Other assets 1,134 1,098
Total assets $36,552 $55,400
Liabilities:
Accounts payable $1,424 $7,854
Accrued payroll and accrued expenses 6,367 7,224
Accrued compensation to law firms -- 7,956
Deferred revenue 4,896 4,877
Other current liabilities 5,603 4,916
Total current liabilities 18,290 32,827
Long-term liabilities 342 343
Common stock subject to rescission 851 528
Stockholders' equity 17,069 21,702
Total liabilities and
stockholders' equity $36,552 $55,400
The SCO Group Announces Second Quarter 2005 Results
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
Three Months Ended Six Months Ended
April 30, April 30,
2005 2004 2005 2004
Products revenue $7,838 $8,415 $15,142 $18,127
Services revenue 1,390 1,711 2,881 3,371
SCOsource licensing
revenue 30 11 100 31
Total revenue 9,258 10,137 18,123 21,529
Cost of products revenue 563 818 1,207 1,623
Cost of services revenue 746 1,073 1,495 2,395
Cost of SCOsource
licensing revenue 2,889 4,567 6,382 8,090
Total cost of revenue 4,198 6,458 9,084 12,108
Gross margin 5,060 3,679 9,039 9,421
Operating expenses:
Sales and marketing 2,963 4,698 5,900 9,719
Research and development 2,117 2,868 4,197 5,575
General and administrative 2,036 1,710 3,799 3,904
Loss on impairment of
long-lived assets -- 2,139 -- 2,139
Severance and exit costs -- 682 -- 682
Amortization of intangibles 593 593 1,186 1,380
Stock-based compensation 7 163 22 598
Total operating expenses 7,716 12,853 15,104 23,997
Loss from operations (2,656) (9,174) (6,065) (14,576)
Equity in income
of affiliate 17 37 70 74
Other income, net 800 2,422 1,309 6,185
Loss before income taxes (1,839) (6,715) (4,686) (8,317)
Provision for income taxes (123) (966) (237) (1,094)
Net loss (1,962) (7,681) (4,923) (9,411)
Dividends on convertible
preferred stock -- (7,045) -- (7,801)
Net loss applicable to
common stockholders $(1,962) $(14,726) $(4,923) $(17,212)
Basic and diluted net loss
per common share $(0.11) $(1.04) $(0.28) $(1.23)
Weighted average basic and
diluted common shares
outstanding 17,913 14,100 17,831 13,960
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Authored by: fudisbad on Wednesday, June 01 2005 @ 07:01 PM EDT |
For current events, legal filings and 3rd amended complaints.
---
See my bio for copyright details re: this post.
Darl McBride, show your evidence![ Reply to This | # ]
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Authored by: fudisbad on Wednesday, June 01 2005 @ 07:03 PM EDT |
For starters, the sidebar is a bit weird...
---
See my bio for copyright details re: this post.
Darl McBride, show your evidence![ Reply to This | # ]
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Authored by: Anonymous on Wednesday, June 01 2005 @ 07:08 PM EDT |
"Cash and cash equivalents and available-for-sale securities were
$14,192,000 at April 30, 2005."
I wonder just how much of that is
"available-for-sale securities", and how much is cash and cash equivalents? I
suspect that the securities can't be sold for face value (not in any volume,
anyway), unless one of the insiders is willing to pick them up. So their
cash position is worse than this, IMHO.
MSS [ Reply to This | # ]
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- Interesting... - Authored by: Anonymous on Wednesday, June 01 2005 @ 07:16 PM EDT
- Interesting... - Authored by: Anonymous on Wednesday, June 01 2005 @ 08:24 PM EDT
- Interesting... - Authored by: Anonymous on Wednesday, June 01 2005 @ 08:31 PM EDT
- Not their own stock. - Authored by: Anonymous on Thursday, June 02 2005 @ 12:21 AM EDT
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Authored by: vadim on Wednesday, June 01 2005 @ 07:21 PM EDT |
SCOsource licensing revenue: 30
Cost of SCOsource licensing : 2,889
Where from they've got 30K and wher 2.8M gone?[ Reply to This | # ]
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Authored by: Anonymous on Wednesday, June 01 2005 @ 07:21 PM EDT |
Ok, to start with, I'm not a stock broker, or even a well versed invester but
some interesting numbers that look rather amusing to me:
- Price per share
quote from yahoo: $4.09
- Shares outstanding per yahoo: 17.92 million
(i didn't calculate shorted shares in cause I really don't know how that would
impact it)
- Stockholders equity as indicated above: 17.069
million
Ok, let's say the owner's equity was spread out to all
shares as it stands, gain per share (roughly): $0.95
Wonder if any
stock holders realise based on the above math, they're stocks are worth on the
market a little over 4 times their actual worth.
Again, I have no idea
how close to reality my above math is, but I deffinitly find it amusing.
RS[ Reply to This | # ]
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Authored by: Anonymous on Wednesday, June 01 2005 @ 07:21 PM EDT |
i get so sick of this kind of spin in financial reporting. finacials should be
accurate and correct and properly contextualized.
the only reason they remain profitable is that they have cut most of their staff
and related unix business development. profitable in this case is a weasel word
to hide the fact that their business is dying a less than slow death.
sum.zero[ Reply to This | # ]
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Authored by: Anonymous on Wednesday, June 01 2005 @ 07:45 PM EDT |
Take a look at this entry in Groklaw:
http://www.groklaw.net/comment.php?mode=display&sid=2005
0601093438628&title=Conference+call&type=article&order=&hideanon
ymous=0&pid=322536#c322539
It says in part:
"Because
AutoZone represents it has removed or otherwise is not using SCO code and
proprietary information, the Company currently does not intend to move for a
preliminary injunction. "
Now the interesting thing is, Autozone has
not said they are not using Linux. SCO knows Autozone is using Linux. Autozone
has stated they are not using SCO prorietary information, and because they have
said so, SCO is is not moving for a preliminary injunction.
Now you
legal types, what impact does this have on SCO's claim that IBM has contributed
SCO proprietary information to Linux?
Does this public statement have legal
repercussions? Is it more or less damaging than Novell's statement that it
appears SCO may have some copyrights? Was SCO wise to leave Autozones assertion
unchallenged?
[ Reply to This | # ]
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Authored by: maco on Wednesday, June 01 2005 @ 07:51 PM EDT |
As reported (here?) earlier, SCO is no longer part of Trolltek - they realized
about $800K in its sale.
for those of you who have forgotten, Troltek makes the graphics library on which
KDE sits and are a major contributor to KDE.[ Reply to This | # ]
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Authored by: Anonymous on Wednesday, June 01 2005 @ 07:56 PM EDT |
SCO Group
Posts $1.96 Million Loss for 2Q on Competition Pressure, Lawsuit
Expenses
Despite a string of five quarterly losses, McBride said SCO has
enough cash to press the litigation to a conclusion.
[ Reply to This | # ]
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Authored by: Anonymous on Wednesday, June 01 2005 @ 08:08 PM EDT |
Can SCO distribute open source software and charge for it under the GPL? Didn't
SCO repudiate the GPL? Isn't SCO prohibited from distributing open source
software by the GPL?[ Reply to This | # ]
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Authored by: Anonymous on Wednesday, June 01 2005 @ 09:18 PM EDT |
Is that by not filing for PI, they should have a harder
time later of
convincing the Judge that they have faced
undue hardship etc.
RS [ Reply to This | # ]
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Authored by: Anonymous on Wednesday, June 01 2005 @ 10:24 PM EDT |
c|net.com
For SCO's fiscal second quarter, which ended April
30, revenue declined to $9.3 million from $10.1 million a year earlier.
Its net loss diminished from $14.7 million, or $1.04 per share, to
$2 million, or 11 cents per share.
The year-earlier loss was deepened by
one-time charges for restructuring and for goodwill impairment. Also augmenting
the difference compared with the most recent quarter was the sale this year of
SCO's shares in Trolltech, a move that raised $779,100.
SCO has two
major business strategies. One is selling its two versions of Unix, UnixWare and
OpenServer; the latter is older but still more popular. But SCO plans to launch
a new version code-named Legend June 22 that uses the UnixWare core and improves
performance.
[ Reply to This | # ]
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Authored by: Anonymous on Wednesday, June 01 2005 @ 11:10 PM EDT |
"... we are well-positioned to see our litigation through to its
conclusion."
Does "duck and cover" (as in the 50's broadcasts of what to do when
you're about to be nuked) really count as "well positioned"? ;-)
[ Reply to This | # ]
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Authored by: Anonymous on Wednesday, June 01 2005 @ 11:19 PM EDT |
"... the Company's inability to develop new products and services,"
And that would be because?
Is it just me or does this entire statement boil down to:
1) We win against IBM. You get some of your money back. We retire to the
Bahamas.
2) We lose against IBM. You lose everything. We change our identities and hide
out in the Bahamas.
I know - I'm just cynical I guess!
[ Reply to This | # ]
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Authored by: Anonymous on Wednesday, June 01 2005 @ 11:34 PM EDT |
... it's a wonder that the centrifugal forces don't tear them
apart.
``... many of the Company's leading SCO OpenServer
customers and has been favorably received.''
They're
especially tickled about the inclusion of all those OSS
packages.
``... SCO sold shares of Trolltech AS it had owned
since 1999 in a private transaction for total proceeds of
$779,100.''
Anyone heard if there was a party at
Trolltech's office upon hearing the news?
-- [ Reply to This | # ]
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Authored by: Anonymous on Thursday, June 02 2005 @ 12:07 AM EDT |
From Shankland's article: "SCO had hoped to sell licenses to protect Linux users
from legal attack".
More precisely, SCO had hoped to sell licenses to protect
Linux users from legal
attack by SCO. [ Reply to This | # ]
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Authored by: rsteinmetz70112 on Thursday, June 02 2005 @ 12:51 AM EDT |
Today Darl clearly predicted an increase in sales next quarter based on the
introduction of OpenServer 6.
Whether this will happen or not is what makes or breaks CEOs.
Whether he really believes it or not is also subject to interpretation.
If at the next conference call Darl is still looking at a decline in Unix sales
he will be in serious trouble.
He actually has a fair chance of success, in the short term.
Many existing customers will look at their investment and the possibility of
SCOG continuing then decide to hedge their bets by buying a couple more years of
life in their existing platform.
Remember Darl said there had not been a comparable upgrade in the six years.
I've been in the situation of having a core software supplier go bankrupt.
Buying a couple of years before you have to make a life changing situation looks
pretty good.
---
Rsteinmetz
"I could be wrong now, but I don't think so."
Randy Newman - The Title Theme from Monk[ Reply to This | # ]
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Authored by: micheal on Thursday, June 02 2005 @ 04:35 AM EDT |
Could some one expain these lines to me?
Cost of SCOsource
licensing revenue 2,889 4,567 6,382 8,090
Total cost of revenue
4,198 6,458 9,084 12,108
Gross margin 5,060 3,679 9,039
9,421
What is "Gross margin" and why are these revenues and
cost of revenues not included in the "Total revenue" and "Total operating
expenses"?
--- LeRoy
If I have anything to give, made of this life I live, it is this song, which I
have made. Now in your keeping it is laid.
Anon [ Reply to This | # ]
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Authored by: heretic on Thursday, June 02 2005 @ 09:10 AM EDT |
I find it interesting that tSCOg's total assets are down from US$55M
to US$36,552 in the last 6 month period. Can anybody that understands these
numbers explain this please.
heretic[ Reply to This | # ]
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Authored by: UglyGreenTroll on Thursday, June 02 2005 @ 10:35 AM EDT |
I don't understand. Why does SCO continue with their Unix business? It's at best
modestly profitable, it's under strong competitive pressure from Linux (and is
only going to get worse), and the SCO name is a huge public relations liability
amongst Unix/Linux IT managers (their potential customers).
The Unix
business is actually worth more to some other company than to SCO, so why not
sell it? Are there legal reasons for keeping the business (eg, it increases the
damages they might receive)?
If they don't want to sell it, why invest
$2 million in R&D
every quarter in a dying system? Milk it for what
it's worth and then give it a decent burial. Anything else is wasted money and
effort. BayStar was right on this point.
[ Reply to This | # ]
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