-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Kuma6ZOPbl+1yrGBxL5DqPOe7vr3+hCpc7g86wlza3P0KEIr+BtPtjN5aK1+ZbFp uQoV5rOpSUXOpP3HILlxuw== 0000891020-07-000061.txt : 20070301 0000891020-07-000061.hdr.sgml : 20070301 20070301160758 ACCESSION NUMBER: 0000891020-07-000061 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070301 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070301 DATE AS OF CHANGE: 20070301 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCO GROUP INC CENTRAL INDEX KEY: 0001102542 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 870662823 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-29911 FILM NUMBER: 07663454 BUSINESS ADDRESS: STREET 1: 355 S 520 W, SUITE 100 CITY: LINDON STATE: UT ZIP: 84042 BUSINESS PHONE: 8017654999 MAIL ADDRESS: STREET 1: 355 S 520 W CITY: LINDON STATE: UT ZIP: 84042 FORMER COMPANY: FORMER CONFORMED NAME: CALDERA INTERNATIONAL INC/UT DATE OF NAME CHANGE: 20001101 FORMER COMPANY: FORMER CONFORMED NAME: CALDERA SYSTEMS INC DATE OF NAME CHANGE: 20000104 8-K 1 v27907e8vk.htm FORM 8-K e8vk
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 1, 2007
The SCO Group, Inc.
(Exact name of registrant as specified in its charter)
         
Delaware   0-29911   87-0662823
 
(State or other jurisdiction of   (Commission   (IRS Employer
incorporation)   File Number)   Identification No.)
355 South 520 West
Lindon, Utah 84042

(Address of principal executive offices, including Zip Code)
Registrant’s telephone number, including area code: (801) 765-4999
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


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Item 2.02. Results of Operations and Financial Condition.
Item 9.01. Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
EXHIBIT 99.1


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Item 2.02. Results of Operations and Financial Condition.
On March 1, 2007, The SCO Group, Inc. (“SCO” or the “Company”) issued a press release announcing financial results for its first quarter ended January 31, 2007. A copy of the press release is furnished as Exhibit 99.1 to this report, which press release is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d)   Exhibits. The following items are filed as exhibits to this report:
 
    99.1   Press Release dated March 1, 2007.

 


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SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
Dated: March 1, 2007
       
 
       
    THE SCO GROUP, INC.
 
       
 
  By:   /s/ Bert Young
 
       
 
  Name:   Bert Young
 
  Title:   Chief Financial Officer

 


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EXHIBIT INDEX
     
Exhibit No.   Description
99.1
  Press Release dated March 1, 2007.

 

EX-99.1 2 v27907exv99w1.htm EXHIBIT 99.1 exv99w1
 

EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact:
Ryan Stephenson
The SCO Group, Inc.
ryans@sco.com
Tel: (801) 932-5635
www.sco.com
The SCO Group Announces First Quarter 2007 Results
LINDON, Utah — March 1, 2007 — The SCO Group, Inc. (Nasdaq: SCOX), a leading provider of UNIX® software technology and mobile services, today reported results for its first quarter ended January 31, 2007.
Revenue for the first quarter of fiscal year 2007 was $6,015,000, down from $7,343,000 for the comparable quarter of the prior year. The net loss for the first quarter of fiscal year 2007 was $(1,024,000), or $(0.05) per diluted common share, an improvement over the net loss of $(4,581,000), or $(0.23) per diluted common share, for the comparable quarter of the prior year. The decrease in revenue was primarily attributable to continued competitive pressures on the Company’s UNIX products and services.
“The cost structure that we put into place at the end of the fourth quarter of fiscal year 2006 as well as reduced litigation expenses allowed us to reduce both operating costs and cash used in the business,” said Darl McBride, president and CEO, The SCO Group. “We are committed to our UNIX business, introducing new mobile services and defending our intellectual property rights through the legal system.”
Legal and other expenses incurred in connection with the Company’s litigation were $654,000 for the first quarter of fiscal year 2007, which was down significantly from costs of $4,010,000 for the comparable quarter of the prior year and down from costs of $2,220,000 for the fourth quarter of fiscal year 2006. Because of the unique and unpredictable nature of the Company’s litigation, the occurrence and timing of litigation-related expenses is difficult to predict, and will be difficult to predict in the future. While the Company expects to continue to incur legal expenses related to its ongoing litigation during the 2007 fiscal year, the Company’s expectation is that those expenses will be less than they were for the 2006 fiscal year.
Cash and cash equivalents, available-for-sale marketable securities and restricted cash to be used for certain legal expenses totaled $11,616,000 as of January 31, 2007, compared to $12,664,000 as of October 31, 2006.

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The Company’s Business
During the first quarter of fiscal year 2007, the Company made available HipCheck, a new mobile service designed to remotely control and manage UNIX and Windows server and PC systems. This unique mobile service uses a Windows Mobile phone or a PC to proactively monitor, manage and control printers, PCs, servers and other systems. HipCheck helps system administrators address potential problems before they impact users. HipCheck fixes many system issues right from the smart phone, helping to increase worker productivity and avoid downtime.
At the recent Consumer Electronics Show held in January 2007, the Company began exhibiting a pre-release version of Shout Postcard, a new mobile technology for sharing life’s moments on the go with a personalized, multimedia postcard. Shout Postcard creates a rich, mobile experience by combining pictures, audio and text into a unique postcard that users can share through e-mail or other smart phones. The Company recently announced the release of the free Community version of Shout Postcard, and the Company expects to begin selling the commercial version of Shout Postcard during the second quarter of fiscal year 2007. A free download and more information on Shout Postcard may be obtained by visiting www.shoutpostcard.com.
Additionally, during the second quarter of fiscal year 2007, the Company plans to make available a new set of UNIX and mobile technologies to some of the Company’s major accounts. This new set of technologies will combine the Company’s UNIX technologies with its mobile services that will allow companies and organizations to realize greater productivity gains as customers seek to mobilize their businesses.
Conference Call
As previously announced, The SCO Group will host a conference call at 5:00 p.m. EST today, March 1, 2007, to discuss the first quarter 2007 results. To participate in the teleconference, please call toll free 1-800-745-2192 or use the toll number 1-415-537-1823; confirmation code: 21330983, approximately ten minutes prior to the time stated above. A listen-only Webcast of the call will be broadcast live with a replay available the following day. The Webcast and replay may be accessed from http://ir.sco.com/events.cfm.
Forward-Looking Statements
The statements contained in this press release regarding (i) our commitment to our UNIX business, introducing new mobile services and defending our intellectual property rights, (ii) our expectation that our legal expenses will be less in fiscal 2007 than in fiscal 2006, (iii) our expectation that we will begin selling the commercial version of Shout Postcard during the second quarter of fiscal year 2007, (iv) our plans that during the second quarter of fiscal year 2007 we will make available a new set of UNIX and mobile technologies to some of our major accounts, and (v) other statements that are not historical facts are forward-looking statements and are made under the safe harbor provisions of the Private

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Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks and uncertainties. We wish to advise readers that a number of important factors could cause actual results to differ materially from historical results or those anticipated in such forward-looking statements. These factors include, but are not limited to, continued competitive pressure on the Company’s operating system products which could impact the Company’s results of operations, adverse developments in and increased or unforeseen legal expenses related to the Company’s litigation, the inability to devote sufficient resources to the development and marketing of the Company’s products, including the Me Inc. mobile services and development platform, and the possibility that companies with whom the Company has formed partnerships will decide to terminate, or reduce the resources devoted to, their partnership with the Company. These and other factors that could cause actual results to differ materially from those anticipated are discussed in more detail in the Company’s periodic and current filings with the Securities and Exchange Commission, including the Company’s Form 10-K for the fiscal year ended October 31, 2006. These forward-looking statements speak only as of the date on which such statements are made, and The SCO Group undertakes no obligation to update such statements to reflect events or circumstances arising after such date.
About The SCO Group
The SCO Group (NASDAQ: SCOX) is a leading provider of UNIX software technology and mobile services, offering SCO OpenServer for small to medium business, UnixWare for enterprise applications, and Me Inc. for mobile services. SCO’s highly innovative and reliable solutions help millions of customers grow their businesses everyday, from SCO OpenServer on main street to UnixWare on Wall Street, and beyond. SCO owns the core UNIX operating system, originally developed by AT&T/Bell Labs and is the exclusive licensor to UNIX-based system software providers.
Headquartered in Lindon, Utah, SCO has a worldwide network of thousands of resellers and developers. SCO Global Services provides reliable localized support and services to partners and customers. For more information on SCO products and services, visit http://www.sco.com.
SCO, SCO OpenServer, Me Inc. and the associated SCO logo are trademarks or registered trademarks of The SCO Group, Inc. in the U.S. and other countries. UNIX and UnixWare are registered trademarks of The Open Group. All other brand or product names are or may be trademarks of, and are used to identify products or services of, their respective owners.

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The SCO Group Announces First Quarter 2007 Results  
Condensed Consolidated Balance Sheet Data
(unaudited, in thousands)
                 
    January 31,     October 31,  
    2007     2006  
Assets:
               
Cash and cash equivalents
  $ 7,137     $ 5,369  
Restricted cash
    4,498       8,024  
Available-for-sale marketable securities
    500       2,249  
Accounts receivable, net
    4,010       5,123  
Other
    1,332       1,514  
     
Total current assets
    17,477       22,279  
Property and equipment, net
    519       608  
Other
    431       522  
Total assets
  $ 18,427     $ 23,409  
     
 
               
Liabilities:
               
Accounts payable
  $ 1,659     $ 2,338  
Accrued payroll and other expenses
    4,477       5,566  
Deferred revenue
    2,681       2,994  
Other
    1,627       4,237  
     
Total current liabilities
    10,444       15,135  
Long-term liabilities
    191       192  
Stockholders’ equity
    7,792       8,082  
     
Total liabilities and stockholders’ equity
  $ 18,427     $ 23,409  
     

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The SCO Group Announces First Quarter 2007 Results  
Condensed Consolidated Statement of Operations Data
(unaudited, in thousands, except per share data)
                 
    Three Months Ended  
    January 31,  
    2007     2006  
Products revenue
  $ 4,866     $ 6,000  
SCOsource licensing revenue
    23       30  
Services revenue
    1,126       1,313  
     
Total revenue
    6,015       7,343  
     
Cost of products revenue
    377       584  
Cost of SCOsource licensing revenue
    654       4,010  
Cost of services revenue
    559       637  
     
Total cost of revenue
    1,590       5,231  
     
Gross margin
    4,425       2,112  
     
Operating expenses:
               
Sales and marketing
    2,440       2,688  
Research and development
    1,759       1,871  
General and administrative
    1,323       1,592  
Amortization of intangibles
          592  
     
Total operating expenses
    5,522       6,743  
     
Loss from operations
    (1,097 )     (4,631 )
Equity in income (loss) of affiliate
    42       (8 )
Other income, net
    143       145  
     
Loss before provision for income taxes
    (912 )     (4,494 )
Provision for income taxes
    (112 )     (87 )
     
Net loss
  $ (1,024 )   $ (4,581 )
     
Basic and diluted net loss per common share
  $ (0.05 )   $ (0.23 )
     
 
               
Weighted average basic and diluted common shares
outstanding
    21,186       20,062  
     

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