SCO sees revenue slide in Q4

news
Dec 23, 20051 min

Revenue drop due to lower sales of Unix-based software, company says

The SCO Group Inc. can’t be happy with a sharp drop in fourth-quarter and full-year revenue as it continues to finance its pricey legal battle against IBM Corp. and others.

The Lindon, Utah, software vendor on Thursday reported revenue of US$8.5 million in the fourth quarter, which ended Oct. 31, down from $10.1 million in the same period the year before.

The drop in revenue was due largely to lower sales of its Unix-based software, which continued to face strong competitive pressure, the company said.

For the full fiscal year, revenue dipped to $36.0 million from $42.8 million a year earlier.

Litigation costs continued to add to SCO’s net losses, although the company was able to trim them for the year. SCO’s net losses for fiscal 2005 decreased to $10.7 million, from $16.2 million the year before.

By January 2006, SCO will have spent close to $40 million in legal fees, President and CEO Darl McBride said in an earlier interview.

In addition to IBM, SCO has lawsuits over copyright infringement in place against AutoZone Inc., DaimlerChrysler Corp. and Novell Inc.

The software vendor said it will meet the court’s deadlines for providing evidence to support its case against IBM. The trial is set for February 2007.