Looks like Harmon knew nothing about SCOC before he
recomended look at the history of this company ..how
stupid (????) harmon might be to recomend this one..
Following is CNET ....Read the last 4 paragraphs...that will really tell you about the comapny and their management
SANTA CRUZ, Calif.--Santa Cruz Operation, a developer of computer server software, warned that fiscal second-quarter results will be lower than analysts forecast because of sales delays that the company blamed on concerns about the Y2K computer glitch.
The company said it expects to report a "significant loss" in the quarter. It was forecast to earn 8 cents a share, according to analysts surveyed by First Call/Thomson Financial. For the fiscal year ending Sept. 30, Santa Cruz (SCO) said it would earn "significantly" less than the 60 cents a share on revenue of $250 million analysts expected.
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"The market for our Unix server software hasn't recovered as quickly as we expected following the Y2K period," chief executive Douglas Michels said in a statement.
SCO issued the profit warning, its second consecutive warning, a little more than a month after company executives, including Michels, chairman Alok Mohan and chief financial officer Jenny Twaddle, sold more than 167,000 shares of SCO stock, according to regulatory filings.
SCO shares fell $5.06, or 39 percent, to as low as $8 in after-hours trading following the announcement. The shares fell 75 cents to $13.06 on the Nasdaq Stock Market before the profit warning was announced. SCO shares have fallen 57 percent so far this year.
This is at least the sixth time since 1995 that the company has warned investors that its earnings would miss forecasts. The company said on Jan. 12 that earnings for its fiscal first quarter would be lower than expected because of Y2K concerns, sending its shares down 13 percent that day.
A company spokeswoman said at the time that the slowdown wouldn't affect future quarters' growth and said the company expected its sales to recover during this quarter.
The company also issued profit warnings in April 1997, October 1995, July 1995 and July 1993.
In July 1997, SCO reported operating losses of $16.3 million, or 44 cents a share. Analysts had expected the company to report losses of 12 cents a share.
In July 1993, SCO waited four days after then-chairman James Harris died of lung cancer before telling shareholders of his death. Before his death, the company hadn't said publicly that Harris was ill, even though it raised $75 million in a stock sale in May 1993, less than two months before his death.
The company issued its first profit warning one day after announcing Harris' death, sending the stock down more than 30 percent in one day.
SCO executives sold shares before issuing a profit warning this quarter, according to regulatory filings.
Chairman Mohan sold 95,000 shares during the first week of February for about $1.9 million, according to Washington Service, which tracks insider stock sales. Mohan also sold 100,000 shares between Nov. 15 and Nov. 17 of last year for at least $1.22 million.
President Michels sold 70,000 shares between Feb. 16 and Feb. 24 for more than $1.25 million, Washington Service reported. Michels also sold 200,000 shares between Nov. 17 and Nov. 29 for between $2.5 million and $3.1 million, according to filings.
Chief financial officer Twaddle sold 2,096 shares Feb. 22 for $365,123, according to Washington Service.
Ray Anderson, SCO's senior vice president for marketing, sold 205,000 shares between Dec. 2 and Dec. 14 for between $3.18 million and $4.3 million, filings show. |
