SCOs Revenue Continues Down the Drain

SCOs Revenue Continues Down the Drain

Mar 8, 2006
2 minute read
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The SCO Group, the Unix and wireless software company best known for its seemingly endless Linux and IBM litigation, reported greater then ever losses for its fiscal first quarter, which ended January 31.

Revenue for the first quarter of fiscal year 2006 was $7.34 million, as compared to $8.86 million for the comparable quarter of the prior year. In SCOs prior quarter, ending Oct. 31, 2005, the Lindon, Utah companys total revenue was just over $8.5 million.

SCO Chief Financial Officer Bert Young blamed the decrease in revenue on the continued competitive pressures on its Unix products and services from Linux during a press conference.

Young also said that SCO was not satisfied with its Unix revenue. The company will try to better its Unix cash flow by increasing its marketing efforts.

The net loss for the first quarter of fiscal year 2006 was almost $4.6 million or 23 cents per diluted common share, as compared to a net loss of $2.96 million, or 17 cents per diluted common share, for the comparable quarter of the prior year.

Included in the net loss for the first quarter of fiscal year 2006 was $401,000 of stock-based compensation expense. Included in the net loss for 2005s first quarter was $15,000 of stock-based compensation expense.

“Despite our decrease in revenue and our increase in net loss incurred during the first quarter, the Unix business continued to generate positive cash flow,” said Darl McBride, SCOs president and CEO in a statement.

/zimages/5/28571.gifRead the full story on Linux-Watch: SCOs Revenue Continues Down the Drain

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