The SCO Group, owner of the Unix operating system and a provider of Unix-based technologies, today reported revenue of US$10.1 million for the quarter that ended April 30, 2004. While current-quarter revenue is down from revenue of $21.4 million from the comparable period of the prior year, the loss is primarily the result of a lack of SCOsource licensing revenue, according to a company statement to the press today.
SCOsource revenue was $8.25 million in the second quarter of fiscal year 2003. Revenue for the first two quarters of fiscal year 2004 was $21.5 million compared to revenue for the first two quarters of fiscal year 2003 of $34.9 million.
For the second quarter of fiscal year 2004, SCO reported a net loss applicable to common stockholders of $14.9 million, or $1.06 per diluted common share. This compared to net income reported in the comparable period of the prior year of $4.5 million, or $0.33 per diluted common share.
SCO’s Net Loss from Operations
The net loss from operations for the second quarter of fiscal year 2004 was $9.4 million and included a charge of $682,000 for general and administrative costs related to streamlining the company’s Unix business operations — and a charge of $2.2 million related to the impairment of goodwill and intangible assets. Exclusive of these charges, according to the company, the net loss from operations would have been $6.6 million.
“Our revenue for the second quarter was consistent with our expectation and we also incurred significant expenses for the impairment of goodwill and intangibles and for the exchange of our Series A-1 Convertible Preferred Stock,” said Darl McBride, President and CEO. “Both of these charges negatively impacted our second quarter results.”
McBride went on to say that “as the company looks forward to the last two quarters of fiscal year 2004 we are committed to increasing shareholder value through profitable operations and increasing cash flow from our Unix division as well as remaining focused on our intellectual property lawsuits and licensing strategies.”
SCO’s Financial Outlook
For the third fiscal quarter ending July 31, 2004, the company expects total revenue to be in the range of $10 to $12 million.
SCO anticipates that operating expenses for the third quarter of fiscal year 2004 relating to the company’s Unix division will decrease from the second quarter of fiscal year 2004 and comparable quarters of the prior year as the company continues to focus on Unix division operating profitability.
Expenses associated with our SCOsource division will continue, according to the company, at approximately the current level as the company continues to protect its Unix intellectual property and pursue its legal claims through the court system.
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