Can't Get Enough SCO Spin? Than I have good news for you.
SCO has just put out a press release, at 10:28 PM Monday night, announcing a teleconference Tuesday at 11:30 AM, with Darl, Bench and David Boies. Yup. That would be today. They will be talking about the new legal arrangement with Boies' firm, the money and their plans. If they are planning to sue anybody new, this would seem to be a likely moment to say so or at least hint at it. I have no inside info; just guessing. It all seems to be pulled together in haste at the last minute, compared to earlier such press releases.
Here's some of the press release:
SCO Invites You to Participate in a Teleconference With: David Boies, Managing Partner, Boies, Schiller & Flexner Doesn't this seem like kinda short notice? They put out a press release at 10:28 PM on Monday, calling a teleconference for Tuesday at 11:30 AM. You don't suppose they saw people noticed their SEC filing, do you?
Darl McBride, President and CEO, The SCO Group Robert Bench, CFO, The SCO Group
The SCO Group Teleconference
Tuesday, Nov. 18, 2003, 11:30 a.m. Eastern Time
What: SCO Teleconference: SCO will provide further details on its expanded agreement with Boies, Schiller & Flexner and its payment to the firm during the 4th fiscal quarter. Executives will take questions on future plans for this investment.
Where: Toll Free within North America: 1-800-540-0559
To gain a copy, e-mail the SCO PR team at email@example.com or the Schwartz Communications team at firstname.lastname@example.org .
Confirmation code to enter the call: 105887
When: Tuesday, Nov.18, 2003
11:30 a.m. Eastern, 8:30 a.m. Pacific
Who: Press and industry analysts interested in the UNIX industry, licensing issues, intellectual property and investment news.
Replay: An audio replay will be available for interested media and analysts.
Update: There's a second SCO press release, regarding SCO's arrangement with Boies Schiller:
SCO Expands Scope of its Agreement With Boies, Schiller & Flexner LLP And Provides 4th Quarter Financial Guidance
SCO Expands Agreement With Boies, Schiller & Flexner LLP and Identifies New Copyright Issues
LINDON, Utah, Nov 18, 2003 -- The SCO Group, Inc. (Nasdaq: SCOX), the owner of the UNIX® operating system, today announced it has expanded the scope of its agreement with its law firm, Boies, Schiller & Flexner LLP for the protection of and defense against unauthorized use and exploitation of SCO's intellectual property.
As part of the expanded scope, the firm has been engaged to support SCO regarding issues relating to copyrighted UNIX code incorporated into Linux without authorization or appropriate copyright notices. Code that has been identified includes Unix System V code as well as copyrighted code included in the 1994 settlement between Unix Systems Laboratories, Inc. and Berkeley Software Design, Inc. SCO acquired this code and associated copyrights in 1995 from Novell.
In connection with SCO's $50,000,000 private placement of Series A Convertible Preferred Stock completed on October 16, 2003, SCO has agreed to pay Boies, Schiller & Flexner LLP and other law firms representing SCO, $1,000,000 in cash and issue 400,000 shares of SCO's common stock. As a result of the issuance of this consideration, SCO anticipates recording a charge to earnings of approximately $8,956,000 in its fourth quarter that ended October 31, 2003. This $8,956,000 charge to earnings is comprised of non-cash expense of $7,956,000 related to the issuance of the 400,000 shares of common stock and $1,000,000 in cash expense.
Additionally, SCO anticipates recording a non-cash charge for the beneficial conversion feature related to the issuance of the Series A Convertible Preferred Stock of approximately $8,741,000 in the fourth quarter that ended October 31, 2003. The beneficial conversion feature represents the intrinsic value of the difference in the Series A conversion price of $16.93 per share and the closing market price of SCO's common stock on October 16, 2003 of $19.89 per share. In addition to the stated dividend rate, dividends on the Series A Convertible Preferred Stock will accrue on the difference between the stated dividend rate and 12% per annum. These dividends will reduce earnings available to common stockholders if or when incurred.
In line with its previous guidance, SCO expects revenue for its fourth quarter ended October 31, 2003 to be in the range of $22,000,000 to $25,000,000. SCO will discuss its full results of operations for its fourth quarter and fiscal year ended October 31, 2003, in a conference call on December 8, 2003.
"We look forward to continuing our work with SCO to protect the Company's important and valuable intellectual property rights," said David Boies, Managing Partner, Boies, Schiller & Flexner, LLP.
"During the past seven months, our company, along with Boies, Schiller & Flexner, has uncovered a number of substantial software code issues as they pertain to our UNIX intellectual property and Linux," said Darl McBride, President and CEO, The SCO Group, Inc. "By far the most important asset of this company is our ownership of the UNIX operating system and today we are investing in the protection and future of UNIX. Boies, Schiller & Flexner is now moving beyond the contract issues we have with IBM. The firm will be enforcing and defending SCO's intellectual property rights, including the protection of our UNIX System V source code and our copyrights that were reaffirmed as a result of the BSDI settlement agreement."
Note Regarding Forward-looking Statements:
This press release contains forward-looking statements related to SCO's efforts to protect its intellectual property rights, certain non-cash charges to be recorded in its fourth quarter of fiscal 2003 and financial guidance for its fourth quarter that ended October 31, 2003. These forward-looking statements are subject to risks and uncertainties including the risk that SCO may not prevail in pending or contemplated litigation or otherwise be successful in its efforts to protect its intellectual property rights. In addition, SCO's anticipation that it will record certain non-cash charges in its fourth quarter of fiscal 2003 and its stated revenue expectations for its fourth quarter and fiscal year ended October 31, 2003 are subject to the completion of its fiscal 2003 audit and any audit adjustments. Other risks and uncertainties related to these forward-looking statements are set forth in SCO's filings with the Securities and Exchange Commission.
About The SCO Group
The SCO Group, Inc. (Nasdaq: SCOX) helps millions of customers in more than 82 countries to grow their businesses with UNIX business solutions. Headquartered in Lindon, Utah, SCO has a worldwide network of more than 11,000 resellers and 4,000 developers. SCO Global Services provides reliable localized support and services to all partners and customers. For more information on SCO products and services visit http://www.sco.com.
SCO and the associated SCO logo are trademarks or registered trademarks of The SCO Group, Inc., in the U.S. and other countries. UNIX is a registered trademark of The Open Group in the United States and other countries. Linux is a registered trademark of Linus Torvalds. All other brand or product names are or may be trademarks of, and are used to identify products or services of, their respective owners.