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By Peter Galli  |  Posted 2003-05-28 Print this article Print

McBride said on Wednesday that revenue in the period under review from its operating system platforms was $13.1 million, while revenue from its SCOsource licensing initiative was $8.3 million. "During the quarter ended April 30, 2003, the first two licensing agreements related to our SCOsource initiative, our division for licensing and protecting the companys Unix intellectual property, provided the company with $8.8 million in cash and added $6.1 million to gross margin.
"There are over 6,000 source code licensees of our Unix operating system, and we believe the SCOsource initiative will continue to gain momentum as we pursue enforcement of the companys intellectual property rights," McBride said.
One of those license agreements was signed with Microsoft Corp., while the other has not yet been disclosed. Asked about whether SCO, which was an original member of the UnitedLinux consortium, intended to resume sales of its Linux distribution at some point, McBride said matters are "starting to polarize, and we seem to be getting further away from going down that path." SCO believes that its claims are strong and valid and said that many global customers want greater clarity about the legal situation before doing big Linux implementations. "We are not comfortable with how our intellectual property is being abused, and we now have even more problems with that. "As we move forward we are probably getting further away from going back to Linux than moving closer," he said. McBride also welcomed the latest quarterly financial results, saying these had strengthened its balance sheet and financial position. "Our increased cash balance and working capital has positioned the company for its launch of SCOx, our Web services strategy, and will provide us with other opportunities to drive growth in future quarters. "We expect that revenue for our third quarter, ending July 31, 2003, will be in the range of $19 million to $21 million. These projections anticipate revenue contributions of approximately two-thirds from our operating system platforms and one-third from our SCOsource initiative," he said. Latest Stories by Peter Galli:

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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