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By Peter Galli  |  Posted 2003-02-26 Print this article Print

: SCO Group On the Licensing Warpath?"> "We have very positive programs for working through these issues as they arise. Some 95 percent of the companies we are in discussions with are co-operating well, but there are a handful of cases where the discussions are not as amicable," he said, declining to be more specific about which companies were being uncooperative. While SCO expected to get at least $10 million in revenue from SCOsource-related activities in the current quarter, "we cannot predict at this point what happens to that revenue stream in coming quarters. Its very early on in the process and things are mostly moving forward well for us in that regard," he said.
But the unlicensed use of its Unix shared libraries was just the "tip of the iceberg as there are so much IP were dealing with here, ranging from copyright, trade secrets, patents, source code and licensing issues.
"Because this range of IP-related issues is so broad-based and there is such a wide-range of players involved, were just making sure we move forward very sure-footedly. We dont want to start running before we can walk. Were trying to take things in the right order," McBride said. However, he declined to confirm or deny reports eWeek has received that SCO is preparing to launch legal action over the next few days against at least one of the largest IT companies in the U.S. around its unlicensed usage of SCO Unix technologies. SCO on Wednesday also reported a net loss of $724,000 or 6 cents a share for the first quarter of fiscal 2003 ended January 31, 2003. That loss came on the back of revenue of $13.5 million, and compared to a net loss of $11 million or 77 cents a share on revenue of $17.9 million for the same quarter the prior year, McBride told reporters during a teleconference. "But, for the first time in our history we generated positive earnings before interest, taxes, depreciation, and amortization of $361,000 this past quarter compared to negative $9.2 million in the comparable period a year ago," he said. McBride said SCO expected revenue for the second quarter, ending April 30, 2003, to be in the range of $23 million to $25 million. That forecast was based on anticipated revenue from its current operating platforms of $13 million to $15 million, and from $10 million in revenue from its SCOsource licensing initiative. Read more stories about Linux: Search for more stories by Peter Galli.
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Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at


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