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SCO Claims $15,300,000 From SCOsource
Hollins writes "Yesterday, SCO filed their latest 10-Q. In it, they claim over fifteen million dollars in revenue from their SCOsource initiative (mostly from Microsoft and Sun) with a decline in revenue from all other sources. A lot of interesting statements are in the 10-Q, including "The success of our SCOsource licensing initiative, at least initially, will depend to a great extent on the perceived strength of our intellectual property and contractual claims and our willingness to enforce our rights. Many, particularly those in the open source community, dispute the allegations of infringement that we have made"."
They claim $15,530,000 in revenue from SCOSource.
They refer to having Sun and MS, and say "The two licensing agreements signed by us to date resulted in revenue of $8,250,000 during the April 30, 2003 quarter and $7,280,000 during the July 31, 2003 quarter."
Meaning that SCOSource received no revenue whatsoever outside of those two. Hopefully it'll stay that way after they start sending invoices out.
The reason Sun pays up is that Solaris actually does contain SCO code.
The SCO Group (SCOX) is the American company. The SCO Group GmbH is the German company. They share the same name, but a case brought up against one company is legally shielded from the other. That is the whole point of incorporating seperate companies.
The Australian Competition and Consumer Commission (the "ACCC") has contacted the Company and requested information regarding complaints it has received regarding the Company's intellectual property claims and the Company's statements regarding the need for commercial Linux users to obtain a UNIX license. The Company intends to respond to the ACCC's inquiry. The ACCC has notified the Company that it has not made any decision to pursue the complaints it has received or determined what, if any, action it will take
as an australian - yay for us:)Nothing - well thats something.
Look here this guy have the answer to your questions.
Didn't Rambus use this same tactic? What happened to them?
Anybody can work under ideal circumstances. -- Jeff K. (January 4, 2001)
I've told this story a million times, but I'll tell it once more ... Sun is *VERY* scared of linux. I used to buy Sun equiptment fairly regularaly for the university I worked for, and out Sun rep flat out told us Sun was "very concerned" about Linux. Sun is very competitive with discounts as well, just use the word "Dell" in a sentence and Sun will offer you steep discounts (on overvalued hardware). Because at the end of the day, sun has to answer the question, "A 4 way sun box costs 40k, and a 4 way Dell costs 12k. What can sun do that Dell can't?" At one point Sun even offered us *free* (low end) servers to replace some Linux boxes we had. We politely declined.
Religion is a gateway psychosis. -- Dave Foley
Could both posters and moderators pleae RTFA. Sun's payment was to cover licensing 'clean up' issues with it's version of UNIX. It had nothing to do with Linux.
It is however interesting that they have stock options.
"She's a West Texas girl, just like me" - G.W Bush Iraqis
Whoops. I'm wrong. Dammit, I wish we could delete posts from here.
SCO's 10-Q was for the quarter ending 7/31/03. The August license sale won't show up until the next 10-Q, due about December 15, for the quarter ending October 31.
I guess their fiscal year starts in February.
What can sun do that Dell can't?
High volume I/O
You are both wrong. The full 10-Q does discuss the German case. See below. A registrant must discuss all material litigation. It does not matter whether the litigation involves a subsidiary or the parent, so long as it is material to the entire enterprise.
From the 10Q: "Several entities in Germany have obtained temporary restraining orders in Germany precluding SCO GmbH, the Company's German subsidiary, in substance, from making statements in Germany that disparage Linux, or entities involved in the Linux business, or implicate Linux as infringing the Company's intellectual property rights. SCO GmbH has received an administrative fine of 10,000 Euro for a technical violation of one of the temporary restraining orders. The Company is currently negotiating with the various claimants in Germany over the temporary restraining orders and is evaluating whether it will appeal the administrative fine."
that is how much 1 man - Reginald Broughton - has made since June on SCOX stock sales. which would have previously, at their price of of one year ago would havbe been under $150k (115,000 shares sold since june)
Now, if this is not a pump-and-dump, could someone point a case of it out to me, because i obviously dont fuscking get it.
and since i'm a network guy, and not a financial analyst - how the heck does 1 person make 10% of the company's entire profit in stock sales in less than 6 months, and this not affect anything?
http://biz.yahoo.com/t/80/4661.html
guns kill people like spoons make Rosie O'Donnell fat.
Sun's been making noises about being able to distribute the Linux kernel irrespective of the outcome of the IBM/SCO battle, if I read the news right.
You didn't read the news right. Sun has repeated several times that they indemnify Solaris customers, not Linux customers. Linux customers are on their own.
Save your wrists today - switch to Dvorak
"Goodwill" is the excess amount paid for a company (i.e. in this case a company acquired by SCO) over the book value of that company. Goodwill payments are amortized over periods up to 20 years, but generally companies try to get these kinds of payments out of the way much sooner than that.
______________________________
Sigs are insigificant.
Does anyone have any numbers of how far they'd be in the red if it wasn't for this initiative?
Yes. Start here:
The SCO Group Reports Third-Quarter Results
For the quarter ended July 31, the whole company reported $20.1 million in revenue and $3.1 million in net income. The SCO Source division generated $7.3 million revenue and $5.6 million in gross margin. That means the products&services portion of SCO generated $12.8 million revenue and ($2.5 million) in net loss.
I dug out numbers for the past five quarters and posted them here. You can really see the declining trend in products and services revenue.
SCO's Core Business Is Not Profitable
So, if they weren't profitable before, then a decline in product and service revenue should put them *far* into the red without the SCOSource thing.
SCO has also been cutting costs. As another poster pointed out, income = revenue - costs. Both revenue and costs are declining, so income can go either way.
Well the University obviously hasn't looked very hard. Following the standard Sun method, there's the 'commercial' product, and an Open Source 'project' standing behind it. The Grid Engine Project does, of course, have downloadable and browsable source code under the SISL.
Paranoia isn't an infectious condition, it's a way of life