SCO says there is 'substantial doubt' it will survive
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(InfoWorld) - With its cash reserves running out and its legal case against IBM unravelling, The SCO Group now says there is doubt that it will remain afloat. SCO made the statement in its most recent quarterly U.S. Securities and Exchange Commission statement, filed Tuesday. The company citedÂ its recent motion for Chapter 11 bankruptcy protectionÂ as well as a recent court setback relating to its intellectual-property claims as reasons for worry. "As a result of both the Court's August 10, 2007 ruling and the Company's entry into Chapter 11, there is substantial doubt about the Company's ability to continue as a growing concern," SCO said in the filing. Last month a judge with the U.S. District Court for the District of UtahÂ ruled against SCO on several motions, finding that Novell, rather than SCO, owned the Unix copyright. Novell had sold SCO some Unix rights in the mid-1990s, but the court said that copyright was never assigned. "The effect of these rulings was to significantly reduce or to eliminate certain of the Company's claims in both the Novell and IBM cases, and possibly others," SCO said in its SEC filing. Several of the company's claims against IBM will be dismissed as a result of this ruling, SCO said in the filing, adding that there are still certain claims that remain viable, such as SCO's allegation that IBM engaged in unfair competition in its failed "Project Monterey" effort that was to create a Unix for 64-bit microprocessors. The rulings may also cost SCO a lot of money. The court said that SCO would have to pay Novell for past licensing deals it had struck with Sun Microsystems Inc. and Microsoft. This could amount more than $30 million, SCO said in its SEC filing. That's more than the $10.4 million in cash now held by SCO. The rest of the 10-Q statement, which covers the quarter ended July 31, is a litany of bad news. SCO's total revenue has dropped drastically year-over-year, its Unix business is down 37 percent, it made nothing from its SCOsource Linux licensing program, short-sellers may further drive the stock down, and the bankruptcy proceedings will divert a "significant amount" of senior management's time away from business operations, the filing said. SCO did not immediately return calls seeking comment. The company's detractors were not so quiet. The filings show that by declaring bankruptcy, SCO is hoping to stave off paying Novell the money it owes, said Pamela Jones, editor of the Groklaw.net blog, which has closely followed SCO's litigation. "They are, to my eyes, saying they don't want to hand over the Sun and Microsoft 2003 monies because it would put them out of business," she said.
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The SCO Group is working on a deal with its lawyers to cap the costs of its legal battle over Linux although it claims to be &quot;well positioned&quot; to pursue its current litigation through to its conclusion.
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Ziff Davis - Opinion: If SCO truly felt it had a winning case against IBM, it wouldn't make sense to delay as its once-successful business crumbles.
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The SCO Group Inc. is setting up a Web site to cover the latest happenings in its many legal disputes and as an alternative to the Groklaw.net, a popular Web site that has been highly critical of the company.
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The head of the U.S. Army Corps of Engineers conceded Saturday that despite aggressive efforts to repair the levee system in New Orleans after Hurricane Katrina, it was unclear whether the it could hold up to a sizable hurricane this year.
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Analysts expect continued growth despite a tough environment.
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It's running out of cash and losing in court, and now SCO tells the SEC that things look bleak.
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InfoWorld - With its cash reserves running out, the SCO Group Inc. has filed for bankruptcy protection.
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Support services group Jarvis is facing a critical month in its battle for survival after warning today it could cease trading without new financing.
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Cluster collapse Our SCO cluster watch has officially shifted from threat level "amusement" to "concern."â¦
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The SCO Group, which claims to own the UNIX code used in the Linux operating system, is poised to emerge from Chapter 11 bankruptcy with the help of private investors.
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An anonymous reader writes &quot;SCO has filed for another delay in the case against IBM. The article reports that &#39;According to filings in the case, SCO is looking to buy time until the court can hear its arguments compelling IBM to release more information.
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Lawyers got theirs SCO Group today filed for bankruptcy protection. With less than $10m cash left to call on, SCO said that Chapter 11 protection and reorganization would protect assets as it addresses, ahem, "potential financial and legal challenges".â¦
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Reorganisation may kill it SCO has filed its latest annual report with the Securities and Exchange Commission, and it makes grim reading.â¦
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InfoWorld - Following its bankruptcy filing, The SCO Group may be booted off of the Nasdaq stock exchange as early as next week, the Unix vendor said Wednesday.
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SCO group is going down. Microsoft, Sun, and the greedy investors that abetted SCO in its campaign to loot Unix and Linux vendors and their customers have abandoned ship. Microsoftâs public endorsement of SCOâs legal action against, effectively, Microsoftâs enterprise competitors and their customers, gave SCO the leverage to mug said vendorsâ customers for license fees when vendors refused to drop their wallets in court. Sun and Microsoft animated SCO as the prototypical litigious IP boogeyman in order to terrorize competitorsâ customers into switching to Windows or Solaris to avoid being hauled to court. Thatâs how I laid it out in 2003, and I stand by it now.ADVERTISEMENTNEW IT SERVICES FROM IBM: EASIER TO BUY AND IMPLEMENTDiscover a simpler, more cost-effective way to get the solutions your company needs to grow more flexible and efficient.
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The SCO Group, committed to an expensive legal attack against Linux, said Tuesday it has removed some financial uncertainty from its future by working out an agreement to cap payments to its law firm.