No interest in acquisition

By Steven Vaughan-Nichols  |  Posted 2005-03-22 Print this article Print

Any products from this effort will be more than a year in the future. For the time being, SCOs main revenue stream will continue to be its Unix operating systems.
McBride also said SCO was not interested in being acquired by another company, and was focusing on winning in both the marketplace and the courtroom.
There have been some feelers from companies interested in acquiring SCO, but there are none on the table now. In any case, McBride said that any such purchase would have to be good for the companys stockholders, customers and employees. In addition, "Anyone who buys us now would have to pay a super-premium on price because any price would be based on our IBM litigation being successful." If that seems unlikely, McBride observed that on this same day IBM had just settled its lawsuit with Compuware over allegations of unfair business practices and copyright issues. Click here to read more about Compuwares settlement with IBM. McBride also made clear that the company has the resources to see the litigation through to the very end. "We have capped and funded our legal fees, and we are pleased that we are heading toward a jury trial and that outcome. There is no question that the claims we have before the court will be heard," McBride said. With regard to its business plan, SCO had just shipped the public beta for its OpenServer 6 product, code-named Legend, which will ship this summer. McBride acknowledged that the companys product-related financial future depended on the acceptance of and upgrading to the new product by its current installed base of some 2 million servers. McBride was optimistic about the outlook. "We believe we are arresting the downward slide in product sales and revenue a bit; after all, we have been in a five-year revenue slide. But there is optimism from the current installed base towards the new product. We have now taken the UnixWare engine and melded that into this Open Server product," McBride said. Next Page: Good initial response.

Steven J. Vaughan-Nichols is editor at large for Ziff Davis Enterprise. Prior to becoming a technology journalist, Vaughan-Nichols worked at NASA and the Department of Defense on numerous major technological projects. Since then, he's focused on covering the technology and business issues that make a real difference to the people in the industry.

Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel