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SCO's 4Q and Fiscal 2005 Results: Down, down, down they go... |
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Thursday, December 22 2005 @ 05:02 PM EST
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SCO's financial results are now out. Here is the press release, and the highlights are: Revenue for the three months ended October 31, 2005 was $8,528,000 as compared to $10,075,000 for the comparable quarter of the prior year. This decrease in revenue was primarily due to a decrease in UNIX revenue as a result of continued competitive pressure on the Company's UNIX products and services.
The net loss attributable to common stockholders for the three months ended October 31, 2005 was $(3,431,000), or $(0.19) per diluted common share, as compared to a net loss attributable to common stockholders of $(6,516,000), or $(0.37) per diluted common share for the comparable quarter of the prior year. Included in the net loss attributable to common stockholders for the three months ended October 31, 2004 was $2,702,000 for restructuring charges and losses on dispositions of long-lived assets.
"Even though the Company incurred net losses during the fourth quarter and fiscal year 2005 as a result of expenditures for its continuing litigation, the management team accomplished its objective of returning the UNIX business to profitability and generating positive cash flow during fiscal year 2005," said Darl McBride, President and CEO of The SCO Group. "While we will continue to focus resources on our UNIX business and expect this business to generate positive cash flow again in fiscal year 2006, we are excited about the prospects of our recently announced Me Inc. technology platform for smart handheld devices. Additionally, with the closing of our $10 million private placement in November 2005, we are confident that we will be able to execute on our business strategies and see our litigation through to its conclusion." The stock, of course, was up today. SCO has also now filed its Form S-1, which says in red letters that it is not complete and is subject to change, and the Common Stock Purchase Agreement regarding the recent cash transfusion.
Here are details from the press release about the financials:
****************************
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
October 31, October 31,
2005 2004
Assets:
Cash and cash equivalents $4,272 $12,693
Restricted cash 5,690 8,283
Available-for-sale securities 6,165 18,756
Accounts receivable, net 6,343 6,638
Other current assets 2,454 1,870
Total current assets 24,924 48,240
Property and equipment, net 578 649
Intangibles, net 2,707 5,413
Other assets 739 1,098
Total assets $28,948 $55,400
Liabilities:
Accounts payable $2,197 $7,854
Accrued payroll and accrued expenses 5,774 7,224
Accrued compensation to law firms -- 7,956
Deferred revenue 3,841 4,877
Other current liabilities 4,443 4,916
Total current liabilities 16,255 32,827
Long-term liabilities 338 343
Common stock subject to rescission 1,018 528
Stockholders' equity 11,337 21,702
Total liabilities and stockholders' equity $28,948 $55,400
Condensed Consolidated Statements of Operations Data
(unaudited, in thousands, except per share data)
Three Months Ended Year Ended
October 31, October 31,
2005 2004 2005 2004
Products revenue $7,095 $8,296 $30,190 $35,352
SCOsource licensing
revenue 34 120 166 829
Services revenue 1,399 1,659 5,648 6,628
Total revenue 8,528 10,075 36,004 42,809
Cost of products revenue 642 857 2,544 3,221
Cost of SCOsource
licensing revenue 3,380 4,257 12,847 19,743
Cost of services revenue 727 861 2,922 4,134
Total cost of revenue 4,749 5,975 18,313 27,098
Gross margin 3,779 4,100 17,691 15,711
Operating expenses:
Sales and marketing 2,985 3,086 11,820 17,038
Research and development 2,192 2,445 8,329 10,612
General and
administrative 1,601 1,833 7,047 7,626
Loss on impairment of
long-lived assets -- 216 -- 2,355
Restructuring costs -- 2,486 -- 3,168
Amortization of
intangibles 593 593 2,372 2,566
Stock-based compensation -- 51 22 919
Total operating
expenses 7,371 10,710 29,590 44,284
Loss from operations (3,592) (6,610) (11,899) (28,573)
Equity in income (loss)
of affiliate (4) (4) 47 111
Other income, net 117 223 1,399 6,507
Loss before income taxes (3,479) (6,391) (10,453) (21,955)
Benefit (provision) for
income taxes 48 (125) (273) (1,395)
Net loss (3,431) (6,516) (10,726) (23,350)
Contribution from
convertible preferred
stock -- -- -- 7,123
Net loss applicable to
common stockholders $(3,431) $(6,516) $(10,726) $(16,227)
Basic and diluted net
loss per common share $(0.19) $(0.37) $(0.60) $(1.07)
Weighted average basic
and diluted common
shares outstanding 18,038 17,436 17,924 15,155
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Authored by: MadScientist on Thursday, December 22 2005 @ 05:14 PM EST |
[ Reply to This | # ]
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Authored by: MadScientist on Thursday, December 22 2005 @ 05:15 PM EST |
Please makes links clickable [ Reply to This | # ]
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Authored by: k12linux on Thursday, December 22 2005 @ 05:26 PM EST |
I have decided that I will never understand the stock market.
Is the news that caused the price to jump the fact that although SCO lost over
$3 million in 3 months they didn't lose as much as they did during the same
period a year ago?
---
- SCO is trying to save a sinking ship by drilling holes in it. -- k12linux[ Reply to This | # ]
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- SCO's 4Q and Fiscal 2005 Results: Down, down, down they go... - Authored by: chriseyre2000 on Thursday, December 22 2005 @ 05:31 PM EST
- SCO's 4Q and Fiscal 2005 Results: Down, down, down they go... - Authored by: Anonymous on Thursday, December 22 2005 @ 05:33 PM EST
- SCO's 4Q and Fiscal 2005 Results: Down, down, down they go... - Authored by: Anonymous on Thursday, December 22 2005 @ 05:35 PM EST
- SCO's 4Q and Fiscal 2005 Results: Down, down, down they go... - Authored by: Anonymous on Thursday, December 22 2005 @ 05:38 PM EST
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- SCO's 4Q and Fiscal 2005 Results: Down, down, down they go... - Authored by: greyhat on Thursday, December 22 2005 @ 05:41 PM EST
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- SCO's 4Q and Fiscal 2005 Results: Down, down, down they go... - Authored by: John Hasler on Thursday, December 22 2005 @ 05:50 PM EST
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Authored by: jmc on Thursday, December 22 2005 @ 05:41 PM EST |
A parting shot from Darl was some silly challenge to Al Petrofsky about the
loser in a game between Alma Maters giving a song.
Sounds to me more like a telegraph that his website and probably this one are
being closely watched....[ Reply to This | # ]
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Authored by: Anonymous on Thursday, December 22 2005 @ 05:45 PM EST |
"The stock, of course, is up on negative news."
Technically, the results
came out after the close of the market. Any run-up of the stock you see would
have to have been caused by speculation, illegal insider trading or illegally
dispersed insider information.
IANAL and your mileage may vary. [ Reply to This | # ]
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Authored by: Anonymous on Thursday, December 22 2005 @ 05:53 PM EST |
Here is a cheezy quote
"Even though the Company incurred net losses
during the fourth quarter and fiscal year 2005 as a result of expenditures for
its continuing litigation, the management team accomplished its objective of
returning the UNIX business to profitability and generating positive cash flow
during fiscal year 2005," said Darl McBride, President and CEO of The SCO
Group
Not a lie, just very misleading. Even under their own
definiion, "the UNIX business" lost money in the 4th quarter.
The numbers are
about $500,000 worse for SCOX than I expected, and I am in no way a SCOX
optimist. [ Reply to This | # ]
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Authored by: AdamBaker on Thursday, December 22 2005 @ 06:06 PM EST |
Stockholders equity is down to just over $11M, assuming that includes the new
$10M then they would probably have been bankrupt by the end of the next quarter
without that cash injection.[ Reply to This | # ]
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Authored by: Anonymous on Thursday, December 22 2005 @ 06:06 PM EST |
From the press release:
"The Company will continue to meet the Court's deadlines for identifying
the material it claims IBM misused as alleged in the case."
Since when have they met a deadline. Seems to me they just keep dodging bullets
all day.[ Reply to This | # ]
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- Does it mean...... - Authored by: roadfrisbee on Thursday, December 22 2005 @ 06:13 PM EST
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- Dodging bullets? - Authored by: Anonymous on Friday, December 23 2005 @ 07:09 PM EST
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Authored by: Steve Martin on Thursday, December 22 2005 @ 06:23 PM EST |
"This decrease in revenue was primarily due to a decrease
in UNIX revenue as a result of continued competitive pressure on the
Company's UNIX products and services."
[...]
"Even though the Company
incurred net losses during the fourth quarter and fiscal year 2005 as a result
of expenditures for its continuing litigation, the management team
accomplished its objective of returning the UNIX business to
profitability and generating positive cash flow during fiscal year 2005,"
said Darl McBride, President and CEO of The SCO
Group."
Does anyone beside me see anything, um,
contradictory in the combination of the two highlighted
phrases?
--- "When I say something, I put my name next to it." --
Isaac Jaffee, "Sports Night" [ Reply to This | # ]
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Authored by: Anonymous on Thursday, December 22 2005 @ 06:30 PM EST |
For the quarter ended Oct 31st-
Cost of
SCOsource licensing revenue: $3,380,000
SCOsource revenue: $ 34,000
Now there's a
wonderful line of business...
[ Reply to This | # ]
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- SCOsource - Authored by: rm6990 on Thursday, December 22 2005 @ 06:44 PM EST
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Authored by: shiptar on Thursday, December 22 2005 @ 06:39 PM EST |
Is today December 22nd?
I thought the first deadline in their IBM case was today.
I could have misunderstood, not being a highly paid and trained lawyer without
any ethics.
Thanks[ Reply to This | # ]
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Authored by: archanoid on Thursday, December 22 2005 @ 06:44 PM EST |
So, let's see...you made $166,000 in SCOsource licensing revenue...and it
only cost 12.8 million dollars to do so? Yeah...how's that workin' out for
ya?
[ Reply to This | # ]
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Authored by: argee on Thursday, December 22 2005 @ 07:02 PM EST |
And in another bit of financial news, The XCO group
has filed for bankruptcy today. On the annoucement,
analysts note the stock, as expected, shot up from
$4.05 per share to $9.96.
Darl McBright, CEO, in an exclusive interview said:
"This is good news for our investors. Upon finalizing
of the bankruptcy proceedings, we expect our stock to
hit our former $45 per share target as we will no
longer have any liabilities hanging over our heads."
---
--
argee[ Reply to This | # ]
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Authored by: bstone on Thursday, December 22 2005 @ 07:05 PM EST |
I'm not sure if I heard things correctly, but it sounded to me like Darl said
McDonalds among others (like Croation Telecom, all of China and India, etc.)
were customers where they were experiencing sales growth. Isn't McDonalds
moving away from SCOX? Does anyone have the list that Darl gave? Any idea
whether they actually have new customers, or is all the "growth" from
current customers installing in new stores, etc.
How does the "growing customer base" statement match with the fact
that product revenue is down 15% from a year ago?
[ Reply to This | # ]
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Authored by: Anonymous on Thursday, December 22 2005 @ 09:33 PM EST |
Not being a clever enough squirrle to figure this out can someone who
understands these figures point out how they would have looked without the $10m
- er - donation?
Tufty
[ Reply to This | # ]
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Authored by: Latesigner on Thursday, December 22 2005 @ 11:01 PM EST |
...with some proof today?
You know, actually tell the world what it was IBM stole.
Anyone know anything?
---
The only way to have an "ownership" society is to make slaves of the rest of us.[ Reply to This | # ]
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Authored by: Anonymous on Friday, December 23 2005 @ 02:59 AM EST |
A journalist, Steven J. Vaughan-Nichols, during the question and answer period,
ask SCO CEO Darl McBride could comment on whether any new code or the depth of
the code infrimement with todays filling (due Dec. 22, 2005).
Darl McBride's comment are very telling:
McBride said in a teleconference that the company would be "taking those
217 areas and expanding upon them. We will make them deeper and broader;
polishing the October submissions."
So, nothing new here. No new code found.[ Reply to This | # ]
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Authored by: DaveJakeman on Friday, December 23 2005 @ 05:51 AM EST |
Total assets as of October 31, 2004: $55,400,000.
Total assets as of October 31, 2005: $28,948,000.
Forget the share price. SCO is worth just 52% of what it was one year ago. Is
that proof, if proof were needed, of the brave new McBride Business Model?
"Ah but," I hear him say, "the litigation isn't over
yet!!!"
Maybe not, but your "put up or shut up" date has just passed, so now
watchagonnadoo?
---
Should one hear an accusation, first look to see how it might be levelled at the
accuser.[ Reply to This | # ]
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Authored by: Anonymous on Friday, December 23 2005 @ 01:13 PM EST |
Isn't that, you know, a lie? Unless "focus resources" is being used
in some Bizarro World sense of "spend less".
The only reason that Darl can even claim that the "UNIX business" is
profitable is because they sacked most of the developers and cut costs
drastically. The only "resources" that they "focussed" on
it were marketeers, and you can only paint so much lipstick on a pig.
SCO released their last ever version of UNIX this year. They have nobody to
maintain it, let alone develop new products. Despite having a "new"
(in the sense of only being 3 years behind the competition) product, and despite
the desperate marketing push, their UNIX revenue dropped. Fewer people wanted
it. Unless SCO suddenly hire several hundred engineers, that situation will not
turn around. Ever.
SCO's UNIX business is dead. Anyone with the sense that they were born with can
see that.
Fortunately for Darl, there seem to be a lot of "investors" out there
who were dropped on their heads as babies.[ Reply to This | # ]
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