There has been almost no media coverage of SCO's 3Q conference call. Nobody cares any more, I guess. Journalists loved the story when they thought SCO was going to destroy Linux. Now that the tables are turned, they are busy elsewhere. It is painful to watch a company destroy itself. Or perhaps journalists are tired of not being able to ask questions at SCO's conference calls. Whatever it is, I've seen more coverage of the MySQL story.
Bob Mims faithfully reports for the Salt Lake Tribune:
Revenues for The SCO Group continued to slide in its most recent quarter, with declining product sales and hefty litigation costs.
The Lindon-based software maker . . . registered just $9.35 million in total revenue for the quarter ending July 31 - nearly 17 percent off the $11.2 million of a year ago.
SCO lost $2.37 million, or 13 cents per diluted share, as the cost of its SCOSource Linux-related licensing campaign - typically and largely comprised of its federal court lawsuit expenses - dipped to about $3.1 million from $7.4 million recorded for fiscal 2004's third quarter. . . .
Meanwhile, SCO reported its licensing sales reaped just $32,000, down sharply from $678,000 for 2004's third quarter. Sales of its UNIX products, despite the ambitious release of SCO OpenServer 6 in June, were off about $1 million to $7.9 million for the quarter.
And the Santa Cruz Sentinel covered it, repeating the same bleak numbers, as well as Darl's positive spin, and the article says SCO now has 190 employees, "including about 40 in Scotts Valley".
Analyst Gary Barnett of Ovum tells it like it is, SCO is failing:
Revenues for Q3 of fiscal year 2005 were $9.4m, compared to $11.2m for the comparable quarter of the previous year. This shortfall was attributed by the company to "continued competitive pressures on the company's UNIX products and services and a decrease in SCOsource licensing revenue". Net losses declined to a little over $2m from over $7m in the previous year. Over the same period, SCO's balance sheet saw current assets decline by more than half from 55.4m to 29m.
Comment: SCO is failing. The company's "SCO Source" licensing program cost over $3m in the last quarter, and earned the company revenues of $32,000. The company's UNIX revenues continue to decline, as the "continued competitive pressures" cited in the company's earnings release continue a trend that's been running for several years now.SCO has managed to reduce its net loss, by slashing sales and marketing spend by 30% and R&D by 25%. But in both instances, these cuts will hamper rather than support any fantastic recovery that CEO Darl McBride might be hoping to pull out of a hat.
Perhaps the most alarming trend in SCO's figures is the decline in the company's current assets - down to $23m from $48m between the last quarter and the same quarter the year before. SCO appears to be burning through its current assets at an alarming pace.
That's just a snip from a larger report. So that is the headline, that SCO is not a headline any more. The media has downsized SCO. It's now a local story.