10K Filing Suggests Grim Outlook for SCO 149
dacarr writes "SCO has filed their 10K with the SEC — and according to this, their own assessment of the company's outlook is pretty grim. As usual, PJ of Groklaw has a good synopsis of the filing highlights. In short, it boils down to one thing: unless there's a miracle, even SCO doesn't think they're going to come out of this. 'As a result of the Chapter 11 filings, realization of assets and liquidation of liabilities are subject to uncertainty. While operating as debtors-in-possession under the protection of Chapter 11 of the Bankruptcy Code, the Debtors may sell or otherwise dispose of assets and liquidate or settle liabilities for amounts other than those reflected in the consolidated financial statements, in the ordinary course of business, or, if outside the ordinary course of business, subject to Bankruptcy Court approval. In addition, under the priority scheme established by the Bankruptcy Code, unless creditors agree otherwise, post-petition liabilities and prepetition liabilities must be satisfied in full before stockholders are entitled to receive any distribution or retain any property under a plan of reorganization.'"
Debtor's Prison (Score:4, Interesting)
Money spent on litigation (Score:5, Interesting)
Chapter 11 Statistic (Score:3, Interesting)
"A staggering 85% of Chapter 11 Bankruptcy cases never make it to a confirmed plan of reorganization. In fact, lack of cash causes many companies to liquidate within a few weeks after filing."
Maybe it's not all bad...
Several companies has come out of it: United, Dow, Texaco, Delta, Toys R Us, Macy's and others.
What they really mean (Score:3, Interesting)
In other words: "Our outlook reeks to high heaven and we are afraid that people will dump their stock as quickly as possible. In order to slow this down, we're limiting shareholders in how much they can sell at once. Hopefully, this helps keep our stock from going to worthless (instead of the near-worthless that it is right now)."
The share price right now is 6 cents. It should be interesting to see how low it falls today.
Re:Finally! (Score:3, Interesting)
"I see you have a long.... Oh.. you work for SCO right now? I have heard enough, we will be in touch. Have a good day."
The rank and file are not responsible for the stupidity but it does affect you when you are out there looking for jobs.
Tough shit. (Score:3, Interesting)
In 07 they slashed all spending by about 20-30%.
They've been losing 20% / year in UNIX revenue since 06, in spite of price increases.
Obviously, in '07, someone in charge got a realistic expectancy of the company and started cutting cost (as they should), given the fact they had no chance to sustain their business model.
This is how business works. It is fucking cut-throat, and if you can't get your shit together, afford the lawyers, and sustain an operational model, you fail.
Re:R.I.P. (Score:3, Interesting)
That will mean that MS is accepting that Any Unix is better than their Win Server.