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SCO Numbers

Tuesday, December 21 2004 @ 05:15 PM EST

Here are the numbers from SCO's press release. According to the conference call, they have $7 million in cash left to operate SCO after this quarter. They spent $4.3M in legal fees this quarter. They project $3M per quarter going forward.

Reuters:

"Revenue declined to $10.08 million from $24.3 million."

TheStreet.com's Ronna Abramson says SCO's 4Q loss "tripled on a sharp drop in sales":

"Lindon, Utah-based SCO reported a loss of $6.5 million, or 37 cents a share, in the fourth quarter. That compared with a loss of $1.6 million, or 12 cents a share, in the same period a year earlier.
"The loss includes a $2.7 million restructuring charge.
"Revenue fell more than 50% to $10.1 million from $24.3 million a year earlier. . . .
"Legal news has been the primary driver of the stock, which has fallen about 77% from a 52-week high of 19.31. The company has drawn its share of investors betting against it, with the short interest at 53% as of Nov. 8. Shares of SCO Group fell 33 cents, or 6.8%, to close Tuesday at $4.51."

All in all, this isn't the moon.

*****************************

The SCO Group Announces Fourth Quarter and Fiscal 2004 Results

LINDON, Utah, Dec 21, 2004 /PRNewswire-FirstCall via COMTEX/ -- The SCO Group, Inc. (Nasdaq: SCOX), owner of the UNIX operating system and a leading provider of UNIX-based solutions, today reported results for its fiscal fourth quarter and year ended October 31, 2004.

Revenue for the fourth quarter of fiscal year 2004 was $10,075,000 as compared to $24,290,000 from the comparable quarter of the prior year. The decrease in revenue in the fourth quarter of fiscal year 2004 from the comparable quarter of the prior year was primarily due to a decrease in SCOsource licensing revenue to $120,000 from $10,316,000 and from continued competitive pressures on the Company's UNIX products and services.

The net loss attributable to common stockholders for the fourth quarter of fiscal year 2004 was $6,516,000, or ($0.37) per diluted common share, as compared to a net loss attributable to common stockholders of $1,568,000, or ($0.12) per diluted common share for the comparable quarter of the prior year. Included in the net loss attributable to common stockholders for the fourth quarter of fiscal year 2004 were charges related to a restructuring of continuing operations, reductions in force and dispositions of long-lived assets totaling $2,702,000.

"Fourth Quarter achievements demonstrate continued progress at SCO," said Darl McBride, president and CEO, The SCO Group. "The management team has maintained its commitment to operate our core UNIX business profitably. With the benefit of additional efficiency improvements now in place, we expect the UNIX business will generate cash during fiscal year 2005. During the fourth quarter we also completed an agreement to cap the legal fees relating to the pending contract and intellectual property litigation. The combination of these two positive actions positions us well to pursue our strategy to protect our contractual and intellectual property rights on behalf of our customers, employees and shareholders."

For fiscal year 2004, revenue was $42,809,000 compared to revenue for fiscal year 2003 of $79,254,000. For fiscal year 2004, the net loss attributable to common stockholders was $16,227,000, or ($1.07) per diluted common share, compared to net income attributable to common stockholders of $5,304,000, or $0.34 per diluted common share. Cash and available-for-sale securities were $31,449,000 at October 31, 2004. In addition, $5,000,000 was placed in an escrow account and is classified as a component of restricted cash as of October 31, 2004. This cash will be used to pay for certain expenses associated with our intellectual property litigation.

UNIX Business Highlights

The fourth quarter of fiscal year 2004 marked the third consecutive quarter of stable revenue for the UNIX business. The Company's management team continued to make operating improvements in this business to help it generate positive cash flow in fiscal year 2005. Additionally, the Company anticipates releasing the next version of its OpenServer product, code-named Legend, during the first half of 2005. This product will mark the culmination of a significant product development effort and reinforces the Company's investment in its ongoing UNIX business.

During the fourth quarter, the Company launched a new version to its collaboration product, SCOoffice Server 4.1, which has been gaining acceptance in various markets throughout the world. In addition, the Company launched its SCO Marketplace initiative targeted to third-party developers who wish to participate with the Company in development projects that will benefit and enhance future SCO products.

Litigation Agreement

On November 4, 2004 the Company filed a Form 8-K with the Securities and Exchange Commission indicating it had finalized an amended engagement agreement with the law firms representing the Company in its current litigation. The revised engagement agreement limits the Company's attorneys fees after September 1, 2004 associated with its intellectual property litigation to approximately $31 million (other than contingency fees) and will enable the Company to finance the litigation through to its conclusion, including any necessary appeals. The revised engagement agreement will also lower the Company's ongoing quarterly costs associated with its intellectual property litigation. . . .

Condensed Consolidated Balance Sheets
                                (in thousands)

                                                   October 31,   October 31,
                                                      2004           2003
    Assets:
     Cash and cash equivalents                       $19,693        $64,428
     Restricted cash                                   8,283          2,025
     Available-for-sale securities                    11,756          4,095
     Accounts receivable, net                          6,638          9,282
     Other current assets                              1,870          2,450
      Total current assets                            48,240         82,280
     Property and equipment, net                         649          1,148
     Goodwill and intangibles, net                     5,413         10,452
     Other assets                                      1,098          1,072
      Total assets                                   $55,400        $94,952

    Liabilities:
     Accounts payable                                 $7,854         $1,978
     Accrued payroll and accrued expenses              7,224          8,506
     Accrued compensation to law firms                 7,956         10,556
     Deferred revenue                                  4,877          5,501
     Derivative related to Series A
      convertible preferred stock                         --         15,224
     Other current liabilities                         4,916          3,347
      Total current liabilities                       32,827         45,112
     Long-term liabilities                               343            508
     Minority interest                                    --            145
     Convertible preferred stock                          --         29,671
    Stockholders' equity                              22,230         19,516
      Total liabilities and stockholders' equity     $55,400        $94,952



               Condensed Consolidated Statements of Operations
                    (in thousands, except per share data)

                                 Three Months Ended           Year Ended
                                     October 31,              October 31,
                                  2004        2003        2004        2003

    Products revenue             $8,296     $12,012     $35,352     $45,028
    Services revenue              1,659       1,962       6,628       8,380
    SCOsource licensing revenue     120      10,316         829      25,846
      Total revenue              10,075      24,290      42,809      79,254
    Cost of products revenue        857         729       3,221       4,405
    Cost of services revenue        861       1,346       4,134       6,354
    Cost of SCOsource licensing
     revenue                      4,257       5,288      19,743       9,163
      Total cost of revenue       5,975       7,363      27,098      19,922
      Gross margin                4,100      16,927      15,711      59,332
    Operating expenses:
      Sales and marketing         3,086       5,971      17,038      24,392
      Research and development    2,445       2,870      10,612      11,012
      General and administrative  1,833       1,705       8,308       6,230
      Compensation to law firms      --       8,956          --       8,956
      Restructuring and other     2,486          --       2,486         498
      Amortization of intangibles   593         895       2,566       3,190
      Write-down of investment       --         250          --         250
      Loss on impairment of
       long-lived assets            216         164       2,355         164
      Stock-based compensation       51         277         919       1,204
       Total operating expenses  10,710      21,088      44,284      55,896
    Income (loss) from
     operations                  (6,610)     (4,161)    (28,573)      3,436
    Equity in income (loss)
     of affiliates                   (4)        109         111         (62)
    Other income, net               223       2,886       6,507       2,827
    Income (loss) before
     income taxes                (6,391)     (1,166)    (21,955)      6,201
    Provision for income taxes     (125)       (279)     (1,395)       (774)
    Net income (loss)            (6,516)     (1,445)    (23,350)      5,427
    Dividends on convertible
     preferred stock                 --        (123)      7,123        (123)
    Net income (loss)
     applicable to common
     stockholders               $(6,516)    $(1,568)   $(16,227)     $5,304
    Basic net income (loss)
     per common share            $(0.37)     $(0.12)     $(1.07)      $0.43
    Diluted net income (loss)
     per common share            $(0.37)     $(0.12)     $(1.07)      $0.34
    Weighted average basic
     common shares outstanding   17,436      13,371      15,155      12,261
    Weighted average diluted
     common shares outstanding   17,436      13,371      15,155      15,679

SCO Numbers | 271 comments | Create New Account

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SCO Numbers

Authored by: nattt on Tuesday, December 21 2004 @ 05:38 PM EST

Darl said they're ammending the claim to add copyright infringement over
SCO code in AIX on PowerPC. I'm looking forwards to seeing how they think
they're going to make that fly!