SCO's Financial Spin

Monday, December 22 2003 @ 08:21 AM EST

Contributed by: PJ

SCO's press release blowing their own horn is here. I see no Linux license sales except the usual suspects, Sun and Microsoft:

"Fourth quarter revenue from UNIX products and services was $14.0 million. In addition, revenue generated from the Company's SCOsource licensing initiative was $10.3 million, which was derived from licensing agreements reached with Microsoft Corporation and Sun Microsystems, Inc. earlier in fiscal 2003."

They spin it by comparing it to last year's fourth quarter, and I'm guessing they had no place to go but up from last year:

"The SCO Group, Inc. (Nasdaq: SCOX -News ), owner of the UNIX operating system and a leading provider of UNIX-based solutions, today reported revenue of $24.3 million for the fourth quarter of its fiscal year ended October 31, 2003, a 57% increase over revenue of $15.5 million for the comparable quarter a year ago."

So, I see they are marking on a curve. But take a look at this paragraph:

"For the fourth quarter of 2003, the Company reported a net loss to common stockholders of $1.6 million, or $0.12 per diluted common share. Excluding the previously reported charge of approximately $9.0 million incurred in connection with its October 2003 private placement for compensation paid to law firms engaged to enforce its intellectual property rights, the Company would have reported net income for the fourth quarter of $7.4 million, or $0.44 per diluted common share. The Company reported a net loss to common stockholders of $2.7 million, or $0.26 per diluted common share, in the comparable quarter a year ago. A GAAP reconciliation of net income (loss) and earnings per share for the fourth quarter and fiscal 2003 excluding the above charge is included in the financial tables at the end of this release."

Sun and Microsoft gave them a lot of money this year. And they paid their lawyers a lot of money. And they report a net loss to common stockholders. Am I missing something here? This is their best year ever?

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