'The Company has an arrangement with Novell, Inc. ("Novell") in which it acts as an administrative agent in the collection of royalties for customers who deploy SVRx technology. Under the agency agreement, the Company collects all customer payments and remits 95 percent of the collected funds to Novell and retains 5 percent as an administrative fee. The Company records the 5 percent administrative fee as revenue in its consolidated statements of operations. The accompanying October 31, 2002 and 2001 consolidated balance sheets reflect the amounts collected related to this agency agreement but not yet remitted to Novell of $1,428,000 and $1,894,000, respectively, as restricted cash and royalty payable to Novell. The October 31, 2001 balances were reclassified from cash and equivalents and other royalties payable to conform to the current year presentation.'
"This is SCO's admission that Novell owns Unix System V, all revisions - that's what they mean by "SVRx", and pays Novell 95% of the royalties. SCO gets to keep 5% as administrative agent.
"That proves the Novell allegation."
Well, it seems to support it, anyway, if what they are paying for is V. The Salt Lake Tribune meanwhile reports that SCO showed a profit, thanks to Microsoft and a mystery company buying licenses:
"The SCO Group Inc. generated $8.8 million in cash licensing its Unix operating system during the quarter ended April 30, revenue that helped the Lindon-based company report a positive net income for the first time in its history. For the second quarter of its 2003 fiscal year, the company formerly known as Caldera International reported net income of $4.5 million, or 33 cents per share, from revenue of $21.4 million."
In other words, without the license fees, they would have been in the red again.