The Lindon, Utah-based company plans to announce its legal target Wednesday morning, shortly before its conference call regarding its financial results for the first quarter of fiscal 2004, spokesman Blake Stowell said.
"We'll have at least one suit that's filed today before the end of the day," Stowell said Tuesday, with two suits more likely. "There is a high possibility we will be announcing two."
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SCO, which owns a disputed amount of Unix intellectual property, inherited the agreements by which inventor AT&T and its successors licensed the operating system to IBM, Sun Microsystems, Hewlett-Packard, Silicon Graphics, numerous universities and others. SCO has, alleging Big Blue violated its Unix contract by moving Unix technology to Linux that it should have kept secret.
Darl McBride, CEO, SCO Group
SCO argues that companies should pay for a SCO intellectual property license to use Linux without fear of legal action--a license that costs $699 for a single-processor server. On Monday,to acknowledge signing up for the program.
SCO has declined to identify which companies it has targeted for lawsuits, but it has said the first two will be aimed at companies that hold Unix licenses. Google, which uses thousands of Linux servers to power its search engine, is not the target of the initial suits, Stowell added.
McBride said Monday that the company has about $64 million in cash--plenty to pay for extensive legal actions.
SCO plans to announce further financial details Wednesday. First Call, which surveys financial expectations, said the lone analyst reporting earnings expectations for the company expected a loss of 22 cents per share for the quarter. Two analysts weighed in with revenue projections of $10 million and $14.4 million, First Call spokesman Chuck Hill said.
SCO wasbut would have been in the black if not for a $9 million payout to its attorneys, led by David Boies of Boies, Schiller & Flexner.
In December, SCO said it expected revenue between $10 million and $15 million.