Revenue for the three months ended October 31, 2005 was $8,528,000 as compared to $10,075,000 for the comparable quarter of the prior year. This decrease in revenue was primarily due to a decrease in UNIX revenue as a result of continued competitive pressure on the Company's UNIX products and services.

The net loss attributable to common stockholders for the three months ended October 31, 2005 was $(3,431,000), or $(0.19) per diluted common share, as compared to a net loss attributable to common stockholders of $(6,516,000), or $(0.37) per diluted common share for the comparable quarter of the prior year. Included in the net loss attributable to common stockholders for the three months ended October 31, 2004 was $2,702,000 for restructuring charges and losses on dispositions of long-lived assets.

"Even though the Company incurred net losses during the fourth quarter and fiscal year 2005 as a result of expenditures for its continuing litigation, the management team accomplished its objective of returning the UNIX business to profitability and generating positive cash flow during fiscal year 2005," said Darl McBride, President and CEO of The SCO Group. "While we will continue to focus resources on our UNIX business and expect this business to generate positive cash flow again in fiscal year 2006, we are excited about the prospects of our recently announced Me Inc. technology platform for smart handheld devices. Additionally, with the closing of our $10 million private placement in November 2005, we are confident that we will be able to execute on our business strategies and see our litigation through to its conclusion."

The stock, of course, was up today.

SCO has also now filed its Form S-1, which says in red letters that it is not complete and is subject to change, and the Common Stock Purchase Agreement regarding the recent cash transfusion.

Here are details from the press release about the financials:

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

                      Condensed Consolidated Balance Sheets
                            (unaudited, in thousands)

                                                  October 31,    October 31,
                                                      2005           2004
    Assets:
      Cash and cash equivalents                       $4,272        $12,693
      Restricted cash                                  5,690          8,283
      Available-for-sale securities                    6,165         18,756
      Accounts receivable, net                         6,343          6,638
      Other current assets                             2,454          1,870
        Total current assets                          24,924         48,240
      Property and equipment, net                        578            649
      Intangibles, net                                 2,707          5,413
      Other assets                                       739          1,098
        Total assets                                 $28,948        $55,400

    Liabilities:
      Accounts payable                                $2,197         $7,854
      Accrued payroll and accrued expenses             5,774          7,224
      Accrued compensation to law firms                   --          7,956
      Deferred revenue                                 3,841          4,877
      Other current liabilities                        4,443          4,916
        Total current liabilities                     16,255         32,827
      Long-term liabilities                              338            343
      Common stock subject to rescission               1,018            528
      Stockholders' equity                            11,337         21,702
        Total liabilities and stockholders' equity   $28,948        $55,400



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

                                 Three Months Ended         Year Ended
                                     October 31,            October 31,
                                  2005        2004        2005       2004

    Products revenue             $7,095      $8,296     $30,190    $35,352
    SCOsource licensing
     revenue                         34         120         166        829
    Services revenue              1,399       1,659       5,648      6,628
      Total revenue               8,528      10,075      36,004     42,809
    Cost of products revenue        642         857       2,544      3,221
    Cost of SCOsource
     licensing revenue            3,380       4,257      12,847     19,743
    Cost of services revenue        727         861       2,922      4,134
      Total cost of revenue       4,749       5,975      18,313     27,098
      Gross margin                3,779       4,100      17,691     15,711
    Operating expenses:
      Sales and marketing         2,985       3,086      11,820     17,038
      Research and development    2,192       2,445       8,329     10,612
      General and
       administrative             1,601       1,833       7,047      7,626
      Loss on impairment of
       long-lived assets             --         216          --      2,355
      Restructuring costs            --       2,486          --      3,168
      Amortization of
       intangibles                  593         593       2,372      2,566
      Stock-based compensation       --          51          22        919
        Total operating
         expenses                 7,371      10,710      29,590     44,284
    Loss from operations         (3,592)     (6,610)    (11,899)   (28,573)
    Equity in income (loss)
     of affiliate                    (4)         (4)         47        111
    Other income, net               117         223       1,399      6,507
    Loss before income taxes     (3,479)     (6,391)    (10,453)   (21,955)
    Benefit (provision) for
     income taxes                    48        (125)       (273)    (1,395)
    Net loss                     (3,431)     (6,516)    (10,726)   (23,350)
    Contribution from
     convertible preferred
     stock                           --          --          --      7,123
    Net loss applicable to
     common stockholders        $(3,431)    $(6,516)   $(10,726)  $(16,227)
    Basic and diluted net
     loss per common share       $(0.19)     $(0.37)     $(0.60)    $(1.07)
    Weighted average basic
     and diluted common
     shares outstanding          18,038      17,436      17,924     15,155