SCO Turns a Profit, Renews Threat Against IBM - Page 2

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: