SCO Continues to Lose Money

By Steven Vaughan-Nichols  |  Posted 2005-09-07 Print this article Print

Linux and a lack of SCOsource licensing revenue continue to push SCO's revenue down, but OpenServer 6 is doing well so far.

SCO, the company best known for Linux litigation and its Unix operating systems, reported results for its fiscal third quarter ended July 31, 2005, on Wednesday. The news wasnt good. Revenue for the third quarter of fiscal year 2005 was $9.3 million as compared to $11.2 million for the prior years comparable quarter. This was a slight uptick over the second quarter of 2005, in which the Lindon, Utah-company realized $9.2 million. For common stockholders, the net loss for the third quarter was over $2.4 million, or 13 cents per diluted common share.
This was a far cry from the third quarter of 2004, when common stockholders realized a profit of 38 cents per share.
That 2004s quarter unusual result was due to a one-time capital contribution of almost $15 million. This positive income a year ago was the result of SCO netting $15.5 million from the repurchase of BayStar Capital IIs 40,000 shares of the companys Series A-1 Convertible Preferred Stock after a battle with the venture capitalist over control of the company. Click here to read more about the fight between The SCO Group and BayStar Capital. Despite the losses, "the third quarter was a productive quarter for SCO," said Darl McBride, president and CEO of The SCO Group Inc. McBride said this because "Our Unix business operated profitably for the third consecutive quarter and we launched SCO OpenServer 6, which has received