The SCO Group, now best known for suing major Linux
distributors and Linux users for allegedly infringing its patents,
is continuing to lose cash hand over fist.
For the quarter to 31 January, Unix system specialist SCO saw
sales fall to $7.34m (£4.3m). In the same quarter last year, the
company reported sales of $8.86m.
SCO chief financial officer Bert Young blamed the sales decline
on competing Linux systems eating away at SCO’s sales base.
SCO’s patent infringement cases are continuing and the legal
expenses are also affecting the company’s bottom line.
The company’s net loss for the first quarter was around $4.6m,
compared with a $2.96m net loss in the same quarter the previous
year.
But while SCO’s business continues on a downward spiral, the
amount paid over in stock compensation to employees is going
up.
Helping to make up the company’s first quarter net loss was
$401,000 of stock-based compensation expenses.
This compared to just $15,000 in stock-based compensation
expenses for the same quarter last year.