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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"."

24 of 404 comments (clear)

  1. 10 Q by jeffkjo1 · · Score: 5, Funny

    10 Q Darl McBrides IQ anyone?

    1. Re:10 Q by blitzoid · · Score: 5, Funny

      Oh god.

      It is SO fashionable to insult Darl McBride. But the fact is, that man is out there every night giving all he can to make us laugh, and it's always fresh material! And he's positively charming when he tries to sue people!

      --
      I am a filthy pirate.
  2. Secret. by grub · · Score: 5, Funny


    stolen SCO email:

    @@

    Darl,
    How do these numbers look? I spent 4 hours pulling them out of my ass.

    -Chris
    Microsoft bankroll to fight Linux:___$15,000,000.00
    Sun money to swat the SCO mosquito:_____$299,996.50
    Money Darl swiped from the coffee
    fund whilst no one was watching:______________$3.50
    --
    Total amount of cash extorted/raped:_$15,300,000.00
    @@

    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,
    1. Re:Secret. by Tellalian · · Score: 5, Funny

      Microsoft bankroll to fight Linux:___$15,000,000.00
      Sun money to swat the SCO mosquito:_____$299,996.50
      Money Darl swiped from the coffee fund whilst no one was watching:______________$3.50
      Total amount of cash extorted/raped:_$15,300,000.00


      The look on SCO executive's faces when they learn their tactics have ultimately bankrupted them:

      Priceless

  3. Two companies by sharlskdy · · Score: 5, Insightful

    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.

    1. Re:Two companies by Anonymous Coward · · Score: 5, Insightful
      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.

      They should definitely be worried. Sun has sat on it's ass for years riding it's reputation while stagnating. There is NOTHING interesting happening at Sun at this point. I don't wait with baited breath about a hardware announcement anymore or have hope that we'll see anything but 250MHz bumps in speed every 6 months or so if we're lucky. Sun is becoming irrelevent and they are their own worst enemy.

    2. Re:Two companies by Greyfox · · Score: 5, Interesting
      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. I assume it's to their advantage to imply that they're the only legal Linux distributor for as long as they can, so it'd be to their detriment for SCO to go bankrupt too soon. Once SCO goes under, they'll be back to having to compete head-to-head with IBM.

      They're taking a big risk of alienating the community that way. Personally I wouldn't play my cards that way given that a hefty hunk of the product offering (Mad hatter et al) coming up is open source based.

      --

      I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

    3. Re:Two companies by Monkelectric · · Score: 5, Informative

      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

    4. Re:Two companies by jellomizer · · Score: 5, Insightful

      Well Sun just hates IBM. IBM and Sun make similar products for a similar business. If SCO Wins it is a great loss to IBM. So Sun Makes out. If SCO Looses oh well at least they didn't bother Sun during the interim. either way Sun comes out smelling like roses. At this point Sun doesn't want to be bothered with legal stuff on their Linux Strategy. Although they support the open source model they are not bound to it. So if they have to pay to "Legally" own Linux and use it, so they will. Sun has enough problems and they probably cant take on the legal battle. And if it allows a pot shot at IBM at the same time then all the better.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    5. Re:Two companies by zerocool^ · · Score: 5, Interesting

      I just looked at it.

      Though I have no love for solaris, and I like budget options, I always defend sun hardware. Probably because I work on it on a daily basis (we use everything from IPC's to our quad proc ultra II at Netmar).

      The hardware is rock solid. I mean, you have to beat them with hammers to break them. The PROMS die before anything else goes bad, and that's just cause of the battery. And when the prom dies? Just boot it and make it set it's own mac address in the OS. The fact that we still use IPC's (as monitoring servers, rstat graph displayers, etc) is a testiment to how long they last.

      I just looked at the sun website. The machine you offer does indeed cost $40k, or close to it ($35k). However, make sure you see what's included in that. It's 4x Ultra SPARC III Cu 1.05 Ghz processors, EACH with 8MB of cache. On top of that, there's 32 256MB sticks of registered memory, 2 10k RPM 73GB discs, 2 Gigabit ethernet ports, and dual 1440 Watt power supplies. That's a beast of a machine.

      Oh, and wait, what's this?

      I configure a machine almost matching the specs. The difference here is the processors, which are 2.8 Ghz Xeons, but ONLY 2MB OF CACHE, and they're also only 32bit. Otherwise, the same. 8GB of ram, 2 10k rpm 73GB SCSI drives. Guess what? It cost $28,000.

      Between $28,000 for 32 bit procs with 2MB of cache, and $35,000 for 64 bit procs with 8MB of cache, I might go ahead and bump it up.

      I wish people would realize that sun is rock solid hardware and not that much more expensive.

      ~Will

      --
      sig?
    6. Re:Two companies by ultrabot · · Score: 5, Informative

      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
  4. 10Q and all those warnings by Dancin_Santa · · Score: 5, Insightful

    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"

  5. Not MOSTLY from Microsoft and Sun... by mrAgreeable · · Score: 5, Informative

    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.

    1. Re:Not MOSTLY from Microsoft and Sun... by _Sprocket_ · · Score: 5, Interesting


      Are y'all sure that Sun did give SCO $$$ recently ?


      Usually the glib responce is "RTFA" - in this case its RTF10K. To quote:

      We initiated the SCOsource effort to review the status of these existing licensing and sublicensing agreements and to identify others in the industry that may be currently using our intellectual property without obtaining the necessary licenses. This effort resulted in the execution of two license agreements during the April 30, 2003 quarter. The first of these licenses was with Sun Microsystems, Inc. ("Sun"), a long-time licensee of the UNIX source code and a major participant in the UNIX industry, and was a "clean-up" license to cover items that were outside the scope of Sun's initial UNIX license.

      ...

      The license agreement with Sun provides for an additional $2,500,000 to be paid to us by November 2003.

      ...

      In connection with the payment of $2,500,000 to us by Sun during the quarter ended July 31, 2003, we granted a warrant to Sun to purchase up to 12,500 shares of our common stock, for a period of five years, at a price of $1.83 per share. This warrant was valued at $150,000 using the Black-Scholes option-pricing model and reduced our licensing revenue for the quarter ended July 31, 2003 by that amount.

      The other licensee mentioned was Microsoft. There's your proof that the mystery license went to Sun. Unless, of course, you believe SCO lied in their filing.
  6. The Intangible... by SkArcher · · Score: 5, Funny
    We performed a valuation of our intangible assets as of October 31, 2002 in accordance with SFAS No. 142, "Goodwill and Other Intangible Assets" and determined that the intangible assets reported in the accompanying consolidated balance sheets are not impaired. Write-downs of intangible assets may be necessary if the future fair value of these assets is less than carrying value.


    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 /.
  7. Hang on a minute... by Zocalo · · Score: 5, Insightful
    It mentions the IBM court case and it mentions the Red Hat case. What happened to the German case that they lost pertaining to their defamation of Linux? The one that undermines their position in the IBM/Red Hat cases to the potential investors that will be reading this?

    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!
    1. Re:Hang on a minute... by cdrudge · · Score: 5, Informative

      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.

  8. Re:And in the end... by Anonymous Coward · · Score: 5, Funny

    Well of course getting people to pay you mmoney for liquid will get you behind bars, how the fuck else are you going to serve them?

  9. "perceived strength" by dtfinch · · Score: 5, Insightful

    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.

  10. Re:Slashdotted! by kfg · · Score: 5, Insightful

    According to people who have actually tried it it isn't even possible to sign up for a user license, at any rate.

    No license is actually available.

    It's all a big dog and pony show (with fake dogs and ponies) and even SCO staff are puzzled and frustrated, particularly the sales staff who actually have to tell people to take a hike.

    Cute, huh?

    KFG

  11. 12 months of cash flow by Hamfist · · Score: 5, Interesting

    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.

  12. Re:Wow SCOX stock has really shot up by Tuqui · · Score: 5, Informative

    Look here this guy have the answer to your questions.

  13. Re:Slashdotted! by MuParadigm · · Score: 5, Interesting

    They run into three problems if they actually try to send out those invoices.

    A) The obvious fraud charge that everyone has already discussed.

    B) Anyone who receives one of those invoices might try to challenge SCO's copyrights. Given that the presiding judge ruled ATT was "unlikely" to prevail on their copyright claims in the BSD case, SCO does not want to put their copyrights to the test in court.

    C) Anyone receiving one of those invoices might ask for declaratory judgement, requiring SCO to shut up.

    It's less a dog and pony show than a strip tease. And I really *don't* want to imagine Darl naked.

  14. How SCO Makes Its Money: The SCO Chain Letter by Nova+Express · · Score: 5, Funny
    Dear Linux User,

    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/