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

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.

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