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SCO soap to run and run

Better financials to fund legal action
Fri Mar 02 2007, 15:39
DESPITE WHISPERS suggesting it could run out of money, the SCO soap opera should crank on for a while yet after the litigious Unix seller announced some solidifation of its financial position.

Ordinarily the numbers wouldn't look good with SCO turning in $6m in revenues for its first quarter, down from $7.3 million a year ago. Perhaps more significantly though, its net loss was $1 million, compared to $4.6 million. SCO still has about $11.6 million in cash and other funds available to fight the good fight in court.

Of course, the elephant on the SCO table comes in the form of the legal argument that has rather overshadowed the company's day-to-day operations. Ironically, the stabilisation in finance is in large part down to reduced lawyers' bills.

"The cost structure that we put into place at the end of the fourth quarter of fiscal year 2006 as well as reduced litigation expenses allowed us to reduce both operating costs and cash used in the business," said SCO CEO Darl McBride in a press release.

"We are committed to our Unix business, introducing new mobile services and defending our intellectual property rights through the legal system." µ

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