[Am-info] SCO's Form S-3 filing...

[Fred A. Miller]

SCO's Form S-3 filing...

http://www.sec.gov/Archives/edgar/data/1102542/000104746903023599/a2114384zs-3.htm

SCO is offering 330,000 shares of stock, the proceeds of 
which will NOT go to them.  The  Incestuous relationship 
with the Canopy Group is being used to exploit the current 
stock market price of SCOX before the suckers figure it out 
and run...

The material in the section titled "RISK" is really 
interesting:

"The two licensing agreements signed by us to date resulted 
in revenue of $8,250,000 during the quarter ended April 30, 
2003, and provide for an aggregate of an additional 
$5,000,000 to be paid to us over the next three quarters. 
These contracts do not provide for any payments beyond 2003, 
except that Microsoft was granted the option to acquire 
expanded licensing rights, at its election, that would 
result in additional payments to us if exercised. "

Translation:  Microsoft paid them  $6M and will pay them $5M 
more over the next 3 quarters.   I believe it was Sun who 
paid them $2.5M, for their 'clean up' license.  That's the 
only two fish in the pond that SCO is draining.    They've 
been throwing dynamite into the LInux pond but no Penquins 
have floated to the surface yet.

SCO has NEVER been profitable in the past, and the 'profit' 
they accured this quarter will never repeat itself because 
they have NO viable business plan.  Both licensees are 
corporations that would benefit imensely if Linux were 
shackeled.   SCO will never benefit because after their 
behavior during past six months putative customers have 
fled, and will never return.  Not only that, their current 
customer base is shrinking rapidly in response to SCO's 
rehtoric and PR side show.   Many of the  300 or so 
attendees to SCO's West Coast show last month left saying 
they were dropping Unix and SCO ASAP!

The Unix license MIcrosoft purchased from SCO is totally 
worthless to them, they merely were funding SCOs legal team 
in order that SCO can to continue to harass Linux.    The 
sharade surrounding that shady money transfer is that 
Microsoft is licensing the Unix-to-Windows importation 
software.    Ya, right.   Unix executables won't run under 
WinXX and Microsoft doesn't need to convert Unix 
applications to run under WinXX when all they are doing is 
creating software that runs on the WinXX platform and which   
converts Unix data to SQL tables.  They've already had that 
kind of WinXX based software for several years, it is not 
Unix, it does not use Unix 'IP', and they've been using it.  
Are they now admitting that they 'stole' SCO 'IP' and have 
been using it for several years?   If so, why doesn't SCO 
sue Microsoft for lost revenue and damages?

Sun is another story.  Linux has been eating Sun's lunch.   I 
believe that part of Sun's 'deal' with SCO was the right to 
distribute Linux (rebranded as 'Unix" - SCO will put 
UnixWare, which they used to call "Ancient Unix" back on the 
shelf)  should SCO win their IBM lawsuit, and the subsequent 
lawsuits by RedHat, IBM and any others.  Sun is gambling, 
but it reveals where their heart has always been, and it is 
NOT with Open Source, Linux or the GPL.   Their contribution 
of StarOffice to the OpenSource community under the name 
"OpenOffice"  was merely a way to exploit a lot of 
professional coders at no significant cost to them.  What 
they didn't count on was those coders being so good that 
OpenOffice is a viable replacement for BOTH StarOffice AND 
Microsoft Office.  I'll wager they thought that OpenOffice 
wouldn't be good enough by itself, without their little 
collection of propriatary print drivers, clip art, etc.,  
and the office suite competition would be between StarOffice 
and Microsoft's Office.   Reality has shown that the biggest 
competition to Office is OpenOffice.

What this S-3 filing is really showing is that SCO is in 
deep, deep trouble.  Microsoft and Sun have given them 
enough money, under the guise of Unix license fees, to keep 
feeding their lawyers till the end of the year.   IBM is not 
stupid.  They know this.   Sun and Microsoft can't feed the 
SCO troll any more without raising suspecions of illegality.
The rest of the community is ignoring SCOs claims and 
demands.   SCO now has to sue someone else or shut up.  
McBride has talked himself into a corner.

-- 
"...Linux, MS-DOS, and Windows XP (also known as the Good, the Bad, and
the Ugly)."