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Technology Stocks : Santa Cruz Operation (SCOC) Going Up? -- Ignore unavailable to you. Want to Upgrade?

To: Zainul Hamza who wrote (527)	1/19/2000 6:29:00 AM
From: oilbabe	Read Replies (1) \| Respond to of 656

SCO Announces Fiscal 2000 First Quarter Results Company Anticipates Renewed Growth in Year 2000 After Y2K Delays Impact Q1 Results SANTA CRUZ, Calif., Jan. 18 /PRNewswire/ -- SCO (Nasdaq: SCOC) today announced financial results for its first fiscal quarter ended December 31, 1999. For the first fiscal quarter of 2000, revenues were $53,653,000, an increase over the $52,706,000 reported for the first fiscal quarter of 1999. Net profit for the quarter was $2,875,000, or $0.08 per basic share, and $0.07 per diluted share. In the same period of 1999, the company reported net profit of $3,104,000, or $0.09 per share, basic and diluted. This is based on 41,258,000 diluted shares outstanding in the first quarter of 2000 compared with 35,321,000 diluted shares outstanding in the first quarter of 1999. The year-to-year increase in the number of fully diluted shares outstanding reflects the increase in share options that are "in-the-money" under the company's stock option plan. "While first quarter financial results were affected by delays due to customers' Y2K preparation, we are nonetheless pleased with the company's overall performance. Early second quarter reports indicate that some of these projects are now moving forward," said Doug Michels, president and CEO of SCO. "In our two emerging businesses, Tarantella and the recently expanded Professional Services group, we saw growth in both activity and revenue during the first quarter", said Michels. "In December SCO introduced Tarantella Enterprise II, which generated significant interest from customers and industry analysts and was very well received by the Application Service Provider (ASP) community, with four ASPs making initial purchases." In spite of the shortfall in expected revenues, gross margin remained high at 77.9%, partially due to lower materials costs. This was a result of a 22% increase in electronic licensing revenue, which reached $21 million during the quarter. Electronic licensing now represents almost 40% of total revenue. "Operating results for the first quarter reflect controlled expenses throughout the organization, managed carefully due to the uncertainty surrounding Y2K," commented Jenny Twaddle, corporate controller and acting CFO. "SCO's balance sheet remains highly liquid with strong positive cash flow contributing to the highest levels of cash and short-term investments in the company's history, reaching $66 million by quarter end. Total assets increased by $73 million, or 53%, during the quarter. This was primarily due to the recording of a large unrealized gain from SCO's investment in Rainmaker Systems, which recently completed its initial public offering." Michels concluded, "Tarantella is gaining increased acceptance in the enterprise market and the demand for UnixWare 7 is greater than ever. The first tangible products to emerge from Project Monterey will arrive later this year. The Open Source and Linux movements continue to open up new opportunities that SCO is aggressively pursuing. We are very excited about the opportunities for SCO in 2000."