Here is SCO's press release giving their financial results for the second quarter. UPDATE: Stephen Shankland does a deadpan report. Both the press release and the article are so boring, it's hard to pay attention. They lost more money. That's what I get. They say they have great hopes for the future.
Here's the text of the release.
LINDON, Utah, June 1, 2005 /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 second quarter ended April 30, 2005.
Revenue for the second quarter of fiscal year 2005 was $9,258,000 as compared to $10,137,000 from the comparable quarter of the prior year. The decrease in revenue in the second quarter of fiscal year 2005 from the comparable quarter of the prior year was primarily due to continued competitive pressures on the Company's UNIX products and services.
The net loss attributable to common stockholders for the second quarter of fiscal year 2005 was $1,962,000, or ($0.11) per diluted common share, as compared to a net loss attributable to common stockholders of $14,726,000, or ($1.04) per diluted common share for the comparable quarter of the prior year.
"Our core UNIX business remained profitable in the second quarter as expected, and we increased revenue over the prior quarter as a result of improved performance across all geographies," said Darl McBride, President and CEO, The SCO Group. "We have continued to focus our UNIX business on commercial success in the market place and look forward to launching SCO OpenServer 6 later this month. At the same time, our SCOsource business remains committed to pursuing our legal strategy in the courtroom, and we are well-positioned to see our litigation through to its conclusion."
Revenue for the first two quarters of fiscal year 2005 was $18,123,000 as compared to $21,529,000 from the first two quarters of fiscal year 2004. The net loss attributable to common stockholders for the first two quarters of fiscal year 2005 was $4,923,000, or ($0.28) per diluted common share, as compared to a net loss attributable to common stockholders of $17,212,000, or ($1.23) per diluted common share for the first two quarters of fiscal year 2004. Cash and cash equivalents and available-for-sale securities were $14,192,000 at April 30, 2005. In addition, $3,967,000 remains in an escrow account and is classified as a component of restricted cash as of April 30, 2005, that will be used to pay for certain expenses associated with our litigation.
The Company plans to release SCO OpenServer 6 on June 22, 2005 at an event for SCO's software and hardware partners, customers, and members of the media and analyst community in New York City.
SCO OpenServer 6 has been a multi-year, multi-million dollar development effort and is the most significant upgrade in the product's history. The product has been designed to provide customers with increased performance and security enhancements, access to numerous applications, and integrates many popular Open Source technologies. The product has been in active pre-release testing since the beginning of the year with many of the Company's leading SCO OpenServer customers and has been favorably received.
On March 14, 2005, SCO sold shares of Trolltech AS it had owned since 1999 in a private transaction for total proceeds of $779,100. The Company accounted for the sale and proceeds of the sale as a component of other income in its second quarter and year-to-date statements of operations.
As previously announced, The SCO Group will host a conference call at 5:00 p.m. EDT today, June 1, 2005 to discuss its second quarter results. To participate in the teleconference, please call 800-818-5264 or 913-981-4910; confirmation code: 4988956, approximately five minutes prior to the time stated above. A listen-only Web cast of the call will be broadcast live with a replay available the following day. The Web cast and replay may be accessed from http://ir.sco.com/medialist.cfm. A replay of the call will also be available via the phone starting at 8:00 p.m.
This press release contains forward-looking statements related to (i) the anticipation that the Company will release SCO OpenServer 6 June 22, 2005 and (ii) the Company's commitment in its SCOsource business to pursuing its legal strategy in the courtroom and seeing its litigation through to conclusion. SCO wishes to advise readers that a number of important factors could cause actual results to differ materially from those anticipated in such forward- looking statements including factors such as continued competitive pressure on its operating system products which could impact the profitability of the UNIX business, unforeseen legal costs related to the Company's litigation, the Company's inability to develop new products and services, the Company's inability to release SCO OpenServer 6 on June 22, 2005 and the Company's inability to see its litigation through to its conclusion. These and other factors that could cause actual results to differ materially from those anticipated are discussed in more detail in the Company's filings with the Securities and Exchange Commission.
The SCO Group, Inc. (Nasdaq: SCOX) helps millions of customers to grow their businesses everyday. Headquartered in Lindon, Utah, SCO has a worldwide network of thousands of resellers and developers. SCO Global Services provides reliable localized support and services to 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. All other brand or product names are or may be trademarks of, and are used to identify products or services of, their respective owners.
The SCO Group Announces Second Quarter 2005 Results
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
April 30, October 31,
Cash and cash equivalents $8,145 $12,693
Restricted cash 7,974 8,283
Available-for-sale securities 6,047 18,756
Accounts receivable, net 6,325 6,638
Other current assets 2,288 1,870
Total current assets 30,779 48,240
Property and equipment, net 579 649
Intangibles, net 4,060 5,413
Other assets 1,134 1,098
Total assets $36,552 $55,400
Accounts payable $1,424 $7,854
Accrued payroll and accrued expenses 6,367 7,224
Accrued compensation to law firms -- 7,956
Deferred revenue 4,896 4,877
Other current liabilities 5,603 4,916
Total current liabilities 18,290 32,827
Long-term liabilities 342 343
Common stock subject to rescission 851 528
Stockholders' equity 17,069 21,702
Total liabilities and
stockholders' equity $36,552 $55,400
The SCO Group Announces Second Quarter 2005 Results
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share data)
Three Months Ended Six Months Ended
April 30, April 30,
2005 2004 2005 2004
Products revenue $7,838 $8,415 $15,142 $18,127
Services revenue 1,390 1,711 2,881 3,371
revenue 30 11 100 31
Total revenue 9,258 10,137 18,123 21,529
Cost of products revenue 563 818 1,207 1,623
Cost of services revenue 746 1,073 1,495 2,395
Cost of SCOsource
licensing revenue 2,889 4,567 6,382 8,090
Total cost of revenue 4,198 6,458 9,084 12,108
Gross margin 5,060 3,679 9,039 9,421
Sales and marketing 2,963 4,698 5,900 9,719
Research and development 2,117 2,868 4,197 5,575
General and administrative 2,036 1,710 3,799 3,904
Loss on impairment of
long-lived assets -- 2,139 -- 2,139
Severance and exit costs -- 682 -- 682
Amortization of intangibles 593 593 1,186 1,380
Stock-based compensation 7 163 22 598
Total operating expenses 7,716 12,853 15,104 23,997
Loss from operations (2,656) (9,174) (6,065) (14,576)
Equity in income
of affiliate 17 37 70 74
Other income, net 800 2,422 1,309 6,185
Loss before income taxes (1,839) (6,715) (4,686) (8,317)
Provision for income taxes (123) (966) (237) (1,094)
Net loss (1,962) (7,681) (4,923) (9,411)
Dividends on convertible
preferred stock -- (7,045) -- (7,801)
Net loss applicable to
common stockholders $(1,962) $(14,726) $(4,923) $(17,212)
Basic and diluted net loss
per common share $(0.11) $(1.04) $(0.28) $(1.23)
Weighted average basic and
diluted common shares
outstanding 17,913 14,100 17,831 13,960