RealTime IT News

SCO in The Clear

UPDATED: Like a battered boxer that refuses to give up, SCO has once again picked itself up from the mat.

In late April, Unix vendor SCO received a Nasdaq staff deficiency letter from the exchange warning that SCO was at risk of being delisted. SCO's stock had failed to comply with the minimum bid requirement, and for over 30 business days had closed at under $1.00.

NASDAQ gave SCO until October 22, 2007, to comply with the warning letter. Barely eight weeks after the initial warning, SCO is now back in compliance.

"During the subsequent compliance period provided under the Marketplace Rules, the closing bid price of the company's common stock was at $1.00 per share or greater for at least 10 consecutive business days," SCO said in a statement.

"Accordingly, the Nasdaq staff has informed the company that it has regained compliance with Marketplace Rule 4210(c)(4)."

Last week SCO announced its first-quarter 2007 earnings, which showed a decline in losses and revenues.

The company said its net loss for the second quarter of 2007 was $1.14 million, or $0.05 per diluted common share, which is an improvement over the $4.69 million, or $0.22 per diluted common share, that SCO reported for the second quarter of 2006.*

Litigation, which is key activity for SCO against both Novell and IBM , is ongoing regarding issues of Unix copyright and alleged intellectual-property infringement by Linux.

The actual SCO versus Novell trial is set for Nov. 17 with scheduling for the IBM trial expected sometime thereafter.

SCO shares are $1.32 in morning trading.

*Updated to clarify SCO's recent first-quarter earnings.