"SCO Has Had an Amazing Year" - Indeed

Wednesday, September 17 2003 @ 05:43 AM EDT

Contributed by: PJ

The SCO Group, like Old Faithful, has burst forth with yet another press release. They plan on taking the SCO Show on the road to a city near some of you. They would like to share with you "the latest SCO technology advancements and business solutions". It's free, in case you were not feeling enthusiastic enough to pay.

Wait a sec. Share with us their business solutions? Wasn't Darl just asking for us to come up one of those for him? Judging from a cursory reading of his 10Q, I'd say he could use one within about 12 months:

"During recent quarters, we have experienced a decline in our product and services revenue primarily attributed to the worldwide economic slowdown, lower information technology spending and increased competition in the operating system market. However, we have implemented cost reduction measures to decrease personnel and excess facilities costs and have significantly reduced our overall operating expenses. These measures, combined with revenue of $15,530,000 from our SCOsource licensing initiative, have resulted in the first two profitable quarters in our history."

Maybe they heard from their RIAA friends that musicians make the bulk of their money on tour, so they thought they'd imitate that part of RIAA's repetoire, as they diligently do their imitation of their legal strategy.

And as for technical solutions, I wonder what they have to offer? Some really old code and not a lot of employees to make it better, and a collective cold shoulder, as in dry ice, from the entire world of open source/free software programmers. NASA, we have a problem.

They've had an amazing year, says their Senior VP marketroid, and I think here, at least, we have found common ground. But here's their spin:

"We've enjoyed record earnings during the past two quarters, been one of the top performing stocks on the NASDAQ, been a pioneer in intellectual property protection and announced major technological advancements in both our UNIX and SCOx product initiatives. Because we've made these landmark accomplishments in a struggling economy, the future continues to look extremely bright for SCO and its partners. We're excited to showcase the company and our technologies at this year's worldwide City-to-City Tour."

I guess comedians do go on tour too, so, hey, why not? Knock yourselves out. Please.

Nah, just horsing around. Of course, their buddy Microsoft is bailing them out, because they really need that license from SCO very badly to run their business:

"The amount that we receive from any such licensee will generally depend on the license rights that the licensee previously held and the amount and level of our intellectual property the licensee desires to license. The two licensing agreements signed by us to date resulted in revenue of $8,250,000 during the April 30, 2003 quarter and $7,280,000 during the July 31, 2003 quarter. The license agreement with Sun provides for an additional $2,500,000 to be paid to us by November 2003. On July 31, 2003, Microsoft exercised an option to acquire expanded licensing rights. Upon delivery, we expect to recognize additional revenue related to this option."

So at least at the end of July, Microsoft apparently deemed value in the license and has ponied up some more dough. I am shocked, shocked. Actually, I am, but I'm not surprised. What is of greatest interest to me is that if Microsoft had waited just a little week or so, this detail could have been kept a secret until the next quarterly filing. Evidently, they don't care if we know about their affiliation with the SCO Show. So be it.

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