Poor licence sales
Poor licence sales
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SCO Linux licence sales dry up

But company claims it can fight on in court for 'years to come'

Robert Jaques, vnunet.com 10 Jun 2004
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The SCO Group's attempt to persuade Linux users to buy its licences managed to rake in just $11,000 during its last financial quarter, compared with $8.25m in the second quarter of its 2003 financial year.

SCO president and chief executive Darl McBride said that the company's SCOSource division had generated revenue from "just a few small licensing deals worth $11,000".

Overall SCO reported revenues of $10.1m for the quarter ended 30 April 2004, down 50 per cent from $21.3m during the comparable period of the previous year.

Revenue for the first two quarters of fiscal 2004 was $21.5m, compared to revenue for the first two quarters of fiscal 2003 of $34.9m.

But SCO insisted that it will continue its controversial legal battles with IBM, Novell, Red Hat and Daimler Chrysler over the Linux operating system.

Bert Young, the company's chief financial officer, said: "Our cash position is sufficient to fund lawsuits for several years to come."

McBride blamed the spreading of fear, uncertainty and doubt by the companies it is battling in the courts for stopping its licensing programme from taking off.

"The claims from Novell about what Unix copyrights they had sold or not sold raised questions in the minds of our customers. We did not cause this problem," he said.

See also:

Vendor prepared to cut software prices by 65 per cent to close back-office deals  17 Jun 2004
District court rulingSCO told to specify damages or case will be thrown out  11 Jun 2004
Open source battlesGroup remains confident of seeing lawsuits through to fruition  09 Jun 2004
Largest investor takes 'business decision' to offload shares  14 May 2004
George GardinerIf SCO pursues its claim for licence fees from Linux users, what damages might a court award?  13 Apr 2004
SCO vs IBMThe $3bn lawsuit brought by the SCO Group against IBM will have repercussions for all IT vendors, as well as their users.  01 Jul 2003

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