February 17, 2005 10:06 AM PST

SCO Group faces possible Nasdaq delisting

The SCO Group announced Thursday it faces possible delisting from the Nasdaq SmallCap market, because it failed to file its annual report in a timely fashion.

SCO plans to request a hearing with the Nasdaq Listing Qualifications Panel to appeal the decision, according to the company. In the interim, the company's stock will trade under the ticker "SCOXE," starting Friday, rather than the current "SCOX." (Nasdaq adds an "E" to the ticker of any company delinquent with a filing to the U.S. Securities and Exchange Commission.)

SCO's fiscal year ended Oct. 31, but it said it has yet to file its annual report because it is reviewing its handling of stock options as a form of compensation.

"The company is working to resolve these matters as soon as possible and expects to file its (annual report) upon completion," SCO said in a statement.

The company has been under pressure to reinvigorate its business as its revenue has tumbled and its losses have increased.

With its request for an appeals hearing, SCO can stay the pending delisting, which is scheduled for the market's open on Feb. 25. The company noted, however, that there is no guarantee the appeals panel will grant its request to remain listed.

SCO, a former Linux seller that focuses now on just Unix products, is embroiled in other legal matters, as well.

The company has several copyright infringement lawsuits pending, alleging that parts of SCO's Unix source code were copied into Linux. One of the company's most notable cases is a $5 billion lawsuit against IBM, which shocked the industry when it was filed in 2003.

SCO also has threatened to file lawsuits against other companies using Linux, though it missed a self-imposed deadline for doing so.

6 comments

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Alterior motives?
Delyaing the filing will also permit executives
to get their affairs in order, obtain passports
for the rest of their families and a final
opportunity to get their homes sold off...
Posted by Gleeplewinky (289 comments )
Reply Link Flag
One more example...
... of SCO management incompetence --- or fraud skills. Take
your choice.
Posted by Earl Benser (4342 comments )
Reply Link Flag
Well...
it just show that SCO is crumbling. Oh, they may not be going under, but I would say thier ship is taking on water.

The funny thing is that some company will give Darl Mcbride a job as an executive. Companies seem to like fail CEO's because of the theory they won't make the same mistake twice. Personally I would give him a job... working as fry guy as McDonalds under his teenage manager.

I am debating on whether or not SCO will survive another year before declaring Chapter 17. Of course a more important question is will anyone pick up UNIX and open source it so you won't have any more people trying to pull a SCO with it?
Posted by System Tyrant (1453 comments )
Reply Link Flag
SCO Doesn't Own Unix
"Of course a more important question
is will anyone pick up UNIX and open
source it so you won't have any more
people trying to pull a SCO with it?"

If anyone wants to pick up Unix they will have to get it from Novell who still owns the copyrights to most of it. SCO only bought the rights to market Unix. That's why most of their saber rattling was more like a baby's rattle. They were threatening to sue people for infringing on copyrights they didn't even own.
Posted by nealda (105 comments )
Link Flag
I bet...
I bet Microsoft would like to get ***** of SCO products and patents. I bet that would make life fun for all. Hopefully it would never pass anti-trust, but in the greedy country who knows.

Robert
Posted by (336 comments )
Link Flag
The Natural Order of Things
It is natural that:
1. The executives are buying time to see what they can strip from the carcass.
2. Because they have divested the company of its identity, tuning it over to ambulance chaser lawyers.
3. As they never intended to build a software business. They intended from the beginning, to use a corporation as a gambler uses marked cards, to steal money from customer's and competitors using Fear Uncertainty and Doubt.

It is the Natural Order of Things, that a company that does not plan to produce a product or service will fail. It just kills me that in this failure, the executives will be "compensated". That is the only UNnatural part of this story.
Posted by mpmacal (18 comments )
Reply Link Flag
 

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