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Happy now? They had earnings of 0.09 cents per share when the street was looking for 0.06 cents. Sales of Unixware 7 have just started and are going to take off. Every review is very positive for both Unixware 7 and Tarantella.
This stock should be at 15 or higher.
Wil
SCO Announces Second Quarter Results
SANTA CRUZ, Calif., April 21 /PRNewswire/ -- The Santa Cruz Operation, Inc. (Nasdaq:
SCOC) today announced results for its second fiscal quarter and six months ending March 31,
1998.
Revenues for the second quarter of fiscal 1998 were $50,540,000, compared to $54,087,000 for
the second quarter of fiscal 1997. Net profits for the quarter were $3,201,000 or $0.09 per share,
basic and diluted, as compared to $974,000, or $0.03 per share, basic and diluted, for the same
quarter in fiscal 1997.
Second quarter sales represented an improvement over the first quarter of 1998, primarily due to
increased sales to OEM partners and significant project wins.
Revenues for the six month period ending March 31, 1998, were $98,037,000, compared to
$110,695,000 for the same six month period in fiscal 1997. Net profits for this six month period
were $3,625,000, or $0.10 per share, basic and diluted, as compared to $4,940,000, or $0.13 per
share, basic and diluted, for the first six months of 1997.
Alok Mohan, President and CEO of SCO, said, "The second quarter marked several notable events.
Most significant of these was the official launch of UnixWare 7, a multi-million dollar cooperative
research and development agreement with SCO's OEM server partners, and the completion of the
Tarantella product's first international sales.
"We are particularly excited by the availability of UnixWare 7, our next generation UNIX operating
system. On March 10, 1998, SCO and its partners, including Compaq, Data General, IBM, ICL,
Intel and others, unveiled UnixWare 7, the world's most advanced UNIX operating system, tailor
made for large enterprise environments. We are pleased to report that initial source code sales began
in late March."
John W. Luhtala, senior vice president, operations, and chief financial officer of SCO, commented,
"This quarter, earnings were favorably impacted by continued improvement in gross margins and
strict control of operating expenses. We also continue to maintain a healthy balance sheet that, as of
March 31, 1998, shows almost $55 million in cash and short term investments."
Mr. Mohan concluded, "With the first sales of UnixWare 7 and the continued rollout of the
Tarantella product, SCO continues to advance its growth strategy along its two product-focused
business tracks. Over the coming months, we anticipate increased sales of our core server products
and further establishment of our unique application broker for network computing, the Tarantella
product."
In a separate press release, SCO announced the election of Doug Michels as President & CEO. Alok
Mohan becomes Chairman of the Board of Directors. About SCO
SCO is the world's number one provider of UNIX server operating systems, and the leading
provider of network computing software that enables clients of all kinds -- including PCs, character
terminals, and NCs -- to have Webtop access to business-critical applications running on servers of
all kinds. SCO designed Tarantella software, the world's first application broker for network
computing. SCO sells and supports its products through a worldwide network of distributors,
resellers, systems integrators, and OEMs. For more information, see SCO's WWW home page at:
sco.com.
Except for historical information contained herein, the matters discussed in this release are
forward-looking statements. Investors are cautioned that all forward-looking statements involve
risks and uncertainty, including without limitation, uncertainty in non-U.S. markets, the ability to
reduce expenses, risks of dependence upon third-party suppliers, impact and success of joint
development projects and industry partnerships, timely availability of products mentioned herein,
market acceptance of new products, the impact of competitive products, general market conditions,
and other risks detailed from time to time in SCO's SEC filings, including forms 10-Q and 10-K
(copies of which are available from SCO without charge in hard copy or online at
sco.com, or sec.gov.
NOTE: SCO, The Santa Cruz Operation, the SCO logo, UnixWare, and Tarantella are trademarks
or registered trademarks of The Santa Cruz Operation, Inc. in the USA and other countries. UNIX
is a registered trademark of The Open Group in the United States and other countries. 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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