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SCO revenue, income continue to drop

Slipping Unix sales increased net loss by almost 9 percent from a year earlier. Company aims for positive cash flow in 2007.

Worsening Unix sales meant the SCO Group's revenue continued to slide and its loss deepened in its most recent quarter, the company reported Wednesday.

Revenue dropped to $7.3 million in the quarter ended October 31, 2006, from $8.5 million in the year-earlier quarter. The company's net loss was $3.7 million, or 18 cents per share, compared to $3.4 million, or 19 cents per share, the year earlier.

The SCO Group is famously suing Novell, IBM and others on the basis that open-source Linux inappropriately includes technology from the proprietary Unix code base it purports to own. Legal costs were $2.2 million for the quarter. The company hopes its Unix business will provide positive cash flow in fiscal 2007, which began November 1.