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SCO's 10Q - Woe is SCO

By Pamela Jones et al.

SCO's 10Q for the quarterly period ending January 31, 2009 is now available, and it paints a glum picture indeed:

 The Company incurred a net loss of $459,000 for the three months ended January 31, 2009, and during that same period generated cash of $337,000 from its operating activities. As of January 31, 2009, the Company had a total of $1,836,000 in cash and $3,766,000 in restricted cash, of which $1,500,000 is designated to pay for experts, consultants and other expenses in connection with the litigation between the Company and IBM, Novell and Red Hat (the "SCO Litigation"), $2,266,000 is payable to Novell for the post bankruptcy petition retained binary royalty stream.

They seem to be losing their customers:

Revenue from the UNIX business decreased by $1,775,000, or 36%, for the three months ended January 31, 2009 compared to the three months ended January 31, 2008....Our sales of UNIX products and services are primarily to existing customers.

So... they are selling mostly to prior customers, who are leaving them at a noticeable clip. Um. This is the wonderful asset that SCO hopes to base its bankruptcy reorganization play on? I'm sure their money is safe, though. Wait:

The Company has $250,000 of cash that is federally insured. All remaining amounts of cash as well as restricted cash exceed federally insured limits.

Huh? How about more than one bank? Or a fund that is in TARP and can ensure it all? I mean, restricted cash owed just to Novell is $2,266,000, and it's not insured? That's not all they owe, either. Whazzup widdat?

Full post as published by Groklaw on March 26, 2009 (boomark / email).