SCO's McBride: 'We're Undervalued'
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You've got to hand it to SCO CEO Darl McBride, he sticks to his guns.
On SCO's Q1 2007 earning conference call late Thursday afternoon, McBride outlined his company's performance and told listeners that he believes that SCO stock is undervalued. McBride also levied some fighting words against those that SCO is litigating against, saying that, "it's time to get it on!"
SCO reported results for its first quarter ended January 31, 2007 and the Numbers, though not pretty, represent an improvement of sorts.
SCO said that its net loss for the first quarter was $1 million, or ($0.05) per diluted common share. The quarterly loss is actually an improvement over the $4.6 million loss or ($0.23) per share for the comparable quarter in 2006. Though SCO's losses were down, so were its revenues. Revenue for the first quarter of fiscal year 2007 was $6 million, down from $7.3 million for the same quarter last year.
McBride argued that given the amount that SCO has invested in it legal cases against Novell and IBM, his company is not getting the market valuation that it likely should have.
"The market capitalization has gone down but clearly if we have any success at all in any of these legal fronts you can get arms around the concept pretty quickly that we're undervalued at a $22 million market capitalization," McBride said.
The SCO CEO also took a jab at IBM and Novell but alleging that their strategy was not necessarily to win on the basis of the merit of the case.
"There is no doubt that our enemy is well funded and has deep pockets," McBride said. "Part of their strategy most likely is to try and wear us down to the point where the case is decided not on the merits but whether or not we can stay in the fight or not."
McBride noted that SCO has the resources in place to continue its legal actions to their conclusion and that SCO would do whatever is necessary to ensure that. He also reported that his company had been able to lower its legal expenses in the first quarter of 2007 as he had indicated as part of the SCO Q4 2006 conference call.
Though McBride noted his company is continuing to press forward on it Unix business initiatives and its mobile initiatives, he's keen on having his day in court.
"Now it's time to get it on lets get in there and have the truth out on the table and see where it goes," McBride said. "We like our chances."