The Santa Cruz Operation
maker of Unix systems, has named cofounder and executive vice president
Doug Michels as chief executive officer, succeeding Alok Mohan, who will
stay on as chairman.
The management shakeup comes as SCO faces stiff competition and its stock
price has been in a slump. SCO's revenue for the second fiscal quarter,
ended March 31, fell to $50.5 million from $54.1 million for the like
quarter a year earlier. Net profits rose, however, to $3.2 million, 9 cents
per share, from $974,000, or 3 cents per share.
"My decision to leave the position of president and CEO of such a
well-positioned and market-leading company for
family reasons was not an
easy one," Mohan said in a statement. "I am pleased that Doug Michels has
agreed to accept my former post. I am confident in Doug's abilities and
look forward to working closely with him and his management team in my new
role as chairman."
The company also said it realigned its executive management team to
strengthen its sales, marketing, and corporate development.
"We are delighted about the market's initial response to our UnixWare 7 and
Tarantella products and firmly believe that this reorganization will allow
SCO to best exploit their potential in serving both our current and future
customers," Michels said. "I am pleased that Alok has agreed to stay with
SCO as chairman."
Michels, 44, is an 18-year veteran with the company. SCO's stock closed at
4-3/8 yesterday, unchanged. It has traded as high as 7-1/4 and as low as 3-1/8
in the past 52 weeks. The management shakeup was announced after the
In January, SCO warned analysts that its first quarter results would fall