decoration decoration
Stories

GROKLAW
When you want to know more...
decoration
For layout only
Home
Archives
Site Map
Search
About Groklaw
Awards
Legal Research
Timelines
ApplevSamsung
ApplevSamsung p.2
ArchiveExplorer
Autozone
Bilski
Cases
Cast: Lawyers
Comes v. MS
Contracts/Documents
Courts
DRM
Gordon v MS
GPL
Grokdoc
HTML How To
IPI v RH
IV v. Google
Legal Docs
Lodsys
MS Litigations
MSvB&N
News Picks
Novell v. MS
Novell-MS Deal
ODF/OOXML
OOXML Appeals
OraclevGoogle
Patents
ProjectMonterey
Psystar
Quote Database
Red Hat v SCO
Salus Book
SCEA v Hotz
SCO Appeals
SCO Bankruptcy
SCO Financials
SCO Overview
SCO v IBM
SCO v Novell
SCO:Soup2Nuts
SCOsource
Sean Daly
Software Patents
Switch to Linux
Transcripts
Unix Books
Your contributions keep Groklaw going.
To donate to Groklaw 2.0:

Groklaw Gear

Click here to send an email to the editor of this weblog.


Contact PJ

Click here to email PJ. You won't find me on Facebook Donate Paypal


User Functions

Username:

Password:

Don't have an account yet? Sign up as a New User

No Legal Advice

The information on Groklaw is not intended to constitute legal advice. While Mark is a lawyer and he has asked other lawyers and law students to contribute articles, all of these articles are offered to help educate, not to provide specific legal advice. They are not your lawyers.

Here's Groklaw's comments policy.


What's New

STORIES
No new stories

COMMENTS last 48 hrs
No new comments


Sponsors

Hosting:
hosted by ibiblio

On servers donated to ibiblio by AMD.

Webmaster
SCO Files Notice of Late Filing with SEC
Monday, June 22 2009 @ 06:54 PM EDT

SCO has filed a Notification of Late Filing with the SEC. They're tied up in bankruptcy court, it appears, so they can only give a ballpark idea of how things are going in the revenue department. Think South. I know. Their prince will come, if they can just drag this out long enough for the appeals court to act in their favor, which intriguingly all the SCO shills seem to think is as fixed in the sky as the Big Dipper.

It seems they are too busy at the moment in bankruptcy court to file:
State below in reasonable detail why Forms 10-K, 20-F, 11-K, 10-Q, 10-D, N-SAR, N-CSR, or the transition report or portion thereof, could not be filed within the prescribed time period.

Due to the time required for preparation of documents and key hearing scheduled for June 15, 2009, and July 27, 2009 in connection with the bankruptcy proceedings, the Company requires additional time to file a complete and accurate Form 10-Q for the three months and six months ended April 30, 2009.

(3) Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion thereof?
X Yes - No

Our financial information for the quarter is unaudited. We expect our revenue for the three months ended April 30, 2009 to decrease 31 percent from the three months ended April 30, 2008. We expect our revenue for the six months ended April 30, 2009 to decrease 34 percent from the six months ended April 30, 2008. These decreases resulted from increased competition from alternative operating systems, particularly Linux, and from continued negative publicity from the SCO Litigation and the Company’s filing for Chapter 11 bankruptcy.

We expect our net loss for the three months ended April 30, 2009 to improve 62 percent from the net loss for the three months ended April 30, 2008. We expect our net loss for the six months ended April 30, 2009 to improve 65 percent from the net loss for the six months ended April 30, 2008. These improvements were the result of decreased operating costs which were offset, in part, by a decrease in revenue as mentioned above.

If so, attach an explanation of the anticipated change, both narratively and quantitatively, and, if appropriate, state the reasons why a reasonable estimate of the results cannot be made.

[Update: Funny comment from Jpvlsmv: "Because of course, no company in bankruptcy can be expected to keep track of all of their money all the time." Which reminds me, they are late with the monthly reports to bankruptcy court too. So, if they file everything on the morning of the hearing on the sale, let's just say, how are Novell and IBM and the US Trustee going to be able to figure out if the plan will work, with so many facts missing? And anonymous notes the decreased revenues and asks the right question: "This is despite the much vaunted rising star 'Mobility'"? Hey, that's right. Wasn't it number 22 or something on the iPhone Apps Hit Parade or something? Would you like to see the top 148 iPhone applications downloaded from the iTunes store? - End update.]

They forgot to mention the real reason I think they are "decreasing". They lost in Utah. Notice the date for the sale hearing has, indeed, been set for July 27th in Delaware. The notes from the hearing [PDF] confirm that. I don't know what crack the hearing on the motions to convert to Chapter 7 ended up falling into.


  


SCO Files Notice of Late Filing with SEC | 78 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Corrections Thread
Authored by: lordshipmayhem on Monday, June 22 2009 @ 07:01 PM EDT
Please mention the nature of the correction in the Title, to make the error
easier to find

[ Reply to This | # ]

News Picks threads here
Authored by: lordshipmayhem on Monday, June 22 2009 @ 07:02 PM EDT
Please state the name of the News item in the Title

[ Reply to This | # ]

Off Topic here
Authored by: lordshipmayhem on Monday, June 22 2009 @ 07:04 PM EDT
Please make all links clickable!!

[ Reply to This | # ]

MOR ...
Authored by: Anonymous on Monday, June 22 2009 @ 07:24 PM EDT
... expect SCO to tell BK court they're too busy working on SEC to be able file
MOR in BK.

[ Reply to This | # ]

SCO Files Notice of Late Filing with SEC
Authored by: Anonymous on Monday, June 22 2009 @ 07:25 PM EDT
The reason their expenses are down is because they aren't paying their legal
bills!

[ Reply to This | # ]

Huh?
Authored by: bezz on Monday, June 22 2009 @ 07:31 PM EDT
OK, first I will acknowledge the turnover SCO has had in the accounting department (Acheson and Olson).. It can be tough to churn out the paperwork when you are already short staffed and under the gun.

But that is not what they told the SEC was the reason for late filing.

Due to the time required for preparation of documents and key hearing scheduled for June 15, 2009, and July 27, 2009 in connection with the bankruptcy proceedings, the Company requires additional time to file a complete and accurate Form 10-Q for the three months and six months ended April 30, 2009.
SCO has not kept up with Monthly Operating Reports and now can not file its 10-K (which is not independently audited). on time. Yet they were able to comply with the intense accounting due diligence to finish a "asset sale". Not a complete assets sale (it will need more corrections), but "complete" enough to sign at the last moment to stave off conversion. Shouldn't up-to-date accounting be at hand as a result of the intense scrutiny?

This smells of the old habit of not giving up the evidence for as long as possible to disadvantage those they harm. Excuses, excuses. I don't buy them. Novell, IBM and the US Trustee's office need accounting information n which to argue the motions to convert and the validity of the asset purchase agreement -- which, incidentally, is still not filed on the docket.

[ Reply to This | # ]

Crack
Authored by: Anonymous on Monday, June 22 2009 @ 07:32 PM EDT
PJ Wrote:
I don't know what crack the hearing on the motions to convert to Chapter 7 ended up falling into.

BREAKING NEWS: Evidence of crack floor of Court 3, 6th Floor at courthouse in Wilmington, Delaware. Experts suggest probable pirated art, discovery scheduled.

[ Reply to This | # ]

Revenue forecasts
Authored by: Anonymous on Monday, June 22 2009 @ 07:41 PM EDT
SCOG wrote:
Our financial information for the quarter is unaudited. We expect our revenue for the three months ended April 30, 2009 to decrease 31 percent from the three months ended April 30, 2008. We expect our revenue for the six months ended April 30, 2009 to decrease 34 percent from the six months ended April 30, 2008. These decreases resulted from increased competition from alternative operating systems, particularly Linux, and from continued negative publicity from the SCO Litigation and the Company’s filing for Chapter 11 bankruptcy.

This is despite the much vaunted rising star "Mobility"?

[ Reply to This | # ]

SCO Files Notice of Late Filing with SEC
Authored by: Anonymous on Monday, June 22 2009 @ 09:08 PM EDT
Because of course, no company in bankruptcy can be expected to keep track of all
of their money all the time.

Especially when there are all of these rock-solid plans of reorganization taking
up their executives' and lawyers' time.

Frankly, I'm amazed that the SEC even expects a company in sco's position to
know how much money they don't have.

Sarcasm aside, it really must be difficult to keep track of everything happening
in a business, plus the bankruptcy stuff, plus the sillitigations, plus shopping
for a "buyer". And to keep that up for, what almost two years now?

That's real dedication to a lost cause.

--Jpvlsmv (not logged in)

[ Reply to This | # ]

The Dog Ate Our Homework
Authored by: sproggit on Tuesday, June 23 2009 @ 01:31 AM EDT
This is an interesting - though sadly not unexpected - approach from SCO. They
have chosen to interpret the wording of the SEC's forms in the broadest possible
sense. So when the SEC asks them to explain why filings could not be submitted
on time, they have responded with the equivalent of, "The Dog ate our
homework..."

Now, what happens next depends entirely upon the way in which the SEC choose to
respond to these actions. The wriggle room included in the SEC filing process is
there for a set of reasons. I would suggest, however, that these are somewhat
more narrow in scope that SCO would like.

They are there, for example, to allow companies who have just completed a merger
or divestiture to re-calculate their books such that they can give a complete
set of figures. I may be wildly off base, but in my limited experience a grace
period is not afforded merely because a company chose to direct their accounts
department to work on something else, even if that something else is a
bankruptcy case.

Here's the interesting bit, then.

If you were SCO, and given what we know about SCO and their love for
"Delay, delay, delay", (TM), don't you think it might have been useful
to tell Judge Gross at the Bankruptcy Court that they needed a delay to prepare
their SEC filings?

But they decided to work the other way around. Why do you suppose that is?

Two reasons: firstly, because they have been engaged in a frantic action to fend
off the Chapter 7 motions of their major creditors. Secondly, perhaps, because
this SEC filing might just be the one that confirms what we suspect, that they
are, in fact toast?

Maybe that's a good enough reason to postpone the filing until after the next
hearing.

[ Reply to This | # ]

But they promised Judge Gross precise accounts for next 30 days
Authored by: Anonymous on Tuesday, June 23 2009 @ 02:34 AM EDT

They got the latest 30-day delay, in part, by promising that there would be no further financial losses in those 30 days (i.e. assets due to the creditors would remain intact). Any losses would be made good by 'a stockholder' (see report on the June 15 hearing: Spector said "We have testimony not to lose money. We have a stockholder ready to underwrite any money lost over the extra time.")

Now, the only way to find out what the losses are is to have accurate accounting. Without accurate accounting, it just cannot be done.

[ Reply to This | # ]

  • Doesn't matter - Authored by: Anonymous on Tuesday, June 23 2009 @ 12:26 PM EDT
the only iPhone app in the parade with "mobil" in the name
Authored by: Anonymous on Tuesday, June 23 2009 @ 12:40 PM EDT
73 :: iFart Mobile - #1 Fart Machine for all ages

Price: $0.99

http://www.148apps.com/top-paid-iphone-os-applications/#ixzz0JGveiGGu&D

[ Reply to This | # ]

Groklaw © Copyright 2003-2013 Pamela Jones.
All trademarks and copyrights on this page are owned by their respective owners.
Comments are owned by the individual posters.

PJ's articles are licensed under a Creative Commons License. ( Details )