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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"."
10 Q Darl McBrides IQ anyone?
Duh. You just tried to charge for Linux.
This is my sig. There are many others like it, but this one is mine.
Well that's to be expected of Microsoft; by undermining Linux, their monopoly become even more powerful, even if it means giving millions away.
Quid festinatio swallonis est aetherfuga inonusti?
Africus aut Europaeus?
Surprise, surprise, ...
Does it mention in any more detail how this licence revenue has come in? Aside from MS and Sun, who else has paid up?
I'm particularly interested in the number of people who've signed up for the $699 "bargain rate" for Linux licences
...is that if they lose their court case with IBM and people won't buy their licenses, then they are screwed? Great! Let's go to court!
UNIX? They're not even circumcised! Savages!
stolen SCO email:
@@
Darl,
How do these numbers look? I spent 4 hours pulling them out of my ass.
-Chris
@@
Chris,
That total looks great! Redo it without all the details
then put it on the wires; I have a payment due on my
Mercedes this Thursday.
-Darl
@@
Trolling is a art,
It's clear that MS is exploring how to support their offensive on Linux, but why Sun? Same reason? I guess Solaris' greatest enemy is not MS anymore, but Linux.
While our SCOsource initiative has already resulted in revenue of $15,530,000 during the last two quarters and we continue negotiations with other industry participants that we believe may lead to additional SCOsource license agreements, we are currently unable to predict the level or timing of future revenue from this source, if any.
Allow me a guess.
Zero. Microsoft might keep you afloat for now, but you are doomed to failure.
SAILING MISHAP
The 10Q is known as the Chicken Little of financial documents precisely because of the warnings it lists in the forward looking statements.
It wouldn't be too far fetched to see something like "In the event that a terrorist attack destroyed the databases containing proof of our IP claims, it is possible that we may not be able to meet our cash flow expectations"
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.
So..... SCO goodwill anyone? C'mon, who's hiding all the SCO goodwill? Bill, what's that you are hiding behind your back there? Why do you have lots of goodwill towards SCO, Bill?
An infinite number of monkeys will eventually come up with the complete works of
"caused by the worldwide economic slowdown, increased competition from other alternate operating platforms, and uncertainty from our recent Linux announcement. This impact was largely felt in our distribution channel in the Americas and Europe."
That's interesting.. it indicates at least some customers have given that lawsuit as the reason for not using their products.
You just need the right business model, I guess!
...with revenue of $15,530,000 from our SCOsource licensing initiative, have resulted in the first two profitable quarters in our history.
..."a decline in product revenue of $1,835,000 and a decline in services revenue of $774,000."
They're profitable. First time ever. Its interesting that this licencing scheme brought them over the top. Does anyone have any numbers of how far they'd be in the red if it wasnt for this initiative? It doesnt seem to say in the article.
But it does say this:
So, if they werent profitable before, then a decline in product and service revenue should put them *far* into the red without the SCOSource thing.
.
So assuming that SCO loses this court battle.. do they all get arrested for fraud if they don't return the money raised for license fees. I mean, they are essentially telling people to pay for something they don't own. I can claim that you have to pay me money to drink liquid, and I'm sure there are enough morons out there that would do it to give me a nice little income, but I thought that would put you behind bars.
Can someone familiar with the 10-Q requirements explain whether this omission is permissable (because it was brought in Germany?) or has SCO done something else naughty?
UNIX? They're not even circumcised! Savages!
Sun has paid Sco a quarter million. Why on Earth is it helping bankroll an attempt to destroy Free Software?
It's time to boycott Sun. It's about time it learned you can't bite the hand that feeeds you.
Microsoft, of course, is no surprise. I'm slightly amazed they didn't give Sco more money.
Wow, so scosource.com made $15M. That's not bad for a website that claims to be non-commercial!
The real "Libtards" are the Libertarians!
So this pretty much says they are leaking cash like a open wound leaks blood and that the only way they can make money is from two companies who are essentially bankrolling their court case.
Flip a quarter, will the stock prices go up or go down?
Drivers license
Picture of Melinda and children
Weekly allowance in the amount of $15.3 million
Regardless of whether or not their claim regarding the Linux source code is true, what kind of a business are they planning to run in the future? At this point, their 'other' revenues are dropping, so I wonder if they just plan to sit around and threaten people so they can collect royalties.
If they're earning revenue in any other meaningful way, it'd like to hear it.
This court case contains forward-looking statements that involve risks and uncertainties often indicated by such words as "owns," "all code," "100s and thousands," "main()," "greek letters," "extor^H^H^H^H" and similar expressions. The actual truths differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth below under "The real truth" and "Prior-art" and omitted elsewhere in this quarterly filing.
Desi Noise, Live!
What i find interesting is that Microsoft claims that it's OS is far better than the UNIX variants around today (Linux in particular) , yet they will still pay large sums of money for UNIX source to use in their Services For UNIX (SFU). Seems like they want all their bases covered.
John Hancock
I don't believe it unless I read it by myself, repeatedly!
Time to fire up my favourite browser wget.
while [ true ] ; do wget -r -nd --delete-after http://www.sco.com/ ; done
Perceived is the key word here.
Notice that the licenses sold to Sun and Microsoft account for 100% of their SCOsource revenue, and neither appear to be Linux related, meaning that they've fooled noone into buying their $699 licenses, not even a single idiot.
This means that absolutely linux users, out of the millions out there, believes they have a valid argument enough to buy a license. Not 1%, not 0.00001%. Not a single one. This should say something to investors, but looking back on history, it probably won't.
Their quarterly report shows that their IP claims have no perceived strength at all, but rather it shows producers of operating systems threatened by Linux pumping money into FUD marketting business to make the campaign last as long as possible.
It also says that they have only about 12 months of cash left at the rate they're losing money. That means if they don't get more money from licensing, they will be broke before the IBM case comes to trial. If someone else sues them, they'll probably go under even sooner.
I sure hope someone else sues them soon.
Look here this guy have the answer to your questions.
Microsoft says Linux is hot: Get the Tools You Need to Compete with Linux
Microsoft is selling the CD: "Cost of CD is U.S. $3.50, plus shipping and handling."
Does this mean there should be a Linux "How to compete with Windows" CD, that you can download for free? I can see it now:
- Don't pay Microsoft to be aggressive toward you.
- Use Linux and don't worry about changes in the license agreement as part of a bug fix, after you have paid for the product.
- No forced upgrades:
Microsoft Bars Office 11 From Windows 9X
- Using Linux and Open Office means never having a software funeral.
The fact that there is no "How to compete with SCO" CD available from Microsoft speaks loudly and clearly.Remember when SCO sent out zillions of invoices for $699 per copy of Linux? I believe that they don't actually expect to get paid for these invoices. They sent them out to increase their revenue, making their company look more successful, and when they won't get paid, they'll write it off on their federal taxes as "bad debts." It'll be years before this gets to court. In the meantime, showing revenue makes SCO LOOK successful, increasing their stock price.
Every time you reboot Linux, SCO kills a kitten.
Unless you've paid your $699 fee, that is. Please think of the kittens.
During the three months ended July 31, 2003, Microsoft Corporation ("Microsoft") accounted for approximately 25 percent of total revenue and Sun Microsystems, Inc. ('Sun") accounted for approximately 12 percent of total revenue. During the nine months ended July 31, 2003, Microsoft accounted for approximately 16 percent of total revenue and Sun accounted for approximately 12 percent, of total revenue.
The second is, on the basis of the evidence I've seen, highly questionable:
As a result of our assertion of our intellectual property rights, we have been subjected to several denial of service attacks on our website which prevented web users from accessing our website and doing business with us for a period of time.
I guess it's that good ol' DoS attack that only happens outside office hours and on weekends in Utah.
Finally, there is this little gem, which I find intriguing:
During the quarter ended July 31, 2003, the Company issued a warrant to a consultant, as part of an agreement to assist the Company with its SCOsource licensing initiative. The warrant allows the consultant to acquire 25,000 shares of the Company's common stock at an exercise price of $8.50 per share for a term of two years from the date of the agreement.
Anyone care to venture a guess as to the identity of the unnamed "consultant"?
Rich
SCO delenda est.
Follow the instructions in this chain letter EXACTLY, or HORRIBLE things will happen to you! Mr. L. Penguin threw away this letter, and was sentenced to five years in a Federal Pound-Me-In-The-Ass Prison for UNIX(c) patent infringement. Meanwhile, B. Gates followed the instructions to the letter, and made a million dollar gain in the stock market the very next day!
Step 1: Send $660 to the first name on this list.
Step 2: Move the first name on the list to the third position on the list, and move the other names up one place.
Step 3: Do NOT put your own name on the list, or you too will be sent to a Federal Pound-Me-In-The-Ass Prison.
Step 4: Pass this letter on to all your friends who use Linux.
Name #1
Darl McBride
The SCO Group
355 South 520 West
Suite 100
Lindon, Utah 84042
Name #2
Darrell McBride
The Santa Cruz Operation
355 South 520 West
Suite 100
Lindon, Utah 84042
Name #3
The Darlmeister
SCO SCO KaChoo
355 South 520 West
Suite 100
Lindon, Utah 84042
P.S. THIS IS 100% LEGAL UNLESS SOME STUPID JUDGE STOPS US, AND EVEN IF THEY DO WE'VE ALREADY DUMPED OUR STOCK!
Lawrence Person (lawrencepersonh@gmailh.com (remove all "h"s to mail)
http://www.lawrenceperson.com/
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.
Not really. /. was inconsiderate enough to post a SCO story AFTER work hours.
It's the fact that
The entire point of this document is to get Darl & Co. out of hot water when the lawsuits start flying. When it becomes clear to the general public that the SCO claims were full of shit, and that the insiders cashed out during that period, shareholders will start suing, and the SEC may even launch an investigation. McBride will point to this 10Q and say "we warned you that our claims might not hold up in court, and we furthermore went on to warn you that if our claims did not hold up, SCOsource would stop making money, and we would have no more revenue."
"The question of whether a computer can think is no more interesting than that of whether a submarine can swim" -EWD
Actually this isn't quite true. Though IANAA (accountant), I seem to remember two rules:
1. Revenue cannot be recognized unless it's earned
2. Revenue cannot be recognized unless you're likelier than not to get paid
Thus, unless SCO wants to get into really hot water really quickly, with the SEC, and with stockholders, they could not recognize the invoices as revenue. If a court says that they actually have rights on Linux, that's another story. But keep in mind that so far, they haven't asked a court to rule on that matter. Their suit so far is entirely about IBM's alleged Sys V contract violation.
Why don't we start as a community selling sco short (borrowing their stock from a brokerage house and selling it immediately, then you wait for the price to drop and buy it back, the broker gets his stock back and you get the difference in the price)
1. it is a chance for some of us to make some money off of sco, for a change
2. if the trend is noticed then people will start dumping the stock, thus hurting sco directly and getting our faithful paid back sooner
3. we know for a fact that they are lying through their teeth, trying to bluff the stock price up, this is the best way I know to call that bluff and end their charade