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Forbes: SCO Hitches Its Wagon To Linux

Jul 12, 2000, 15:36 (1 Talkback[s])
(Other stories by Lisa DiCarlo)

"...executives at SCO (nasdaq: SCOC), formerly known as the Santa Cruz Operation, are debating whether Linux will be its salvation. The software maker certainly needs saving. SCO says its fiscal third quarter would fall far short of estimates. It will lose between 50 cents and 55 cents per share, not the 13 cent loss analysts had expected. The company blamed lingering year-2000 concerns and anemic demand for its flagship Unix server software, called UnixWare. Naturally, the stock was hammered, losing about 26% of its value to close at $4 on July 11. The news comes a few months after the company restructured its product divisions, laid off 70 employees and took a $5.9 million restructuring charge."

"So, the company is hitching its wagon to--what else?--Linux. SCO has been selling support services for Caldera (nasdaq: CALD) and TurboLinux for about 6 months, and it has already given some intellectual property to the Linux open source community. But SCO hasn't yet taken the big step--distributing Linux."

"But that's coming. Sources say it's working out an arrangement with France's MandrakeSoft to distribute its Linux-Mandrake operating system. SCO will use Linux-Mandrake as the base OS and add some features like clustering... SCO Chief Executive Doug Michels wouldn't comment specifically on a deal with MandrakeSoft, but he says the company will become a Linux distributor."

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