The Unix vendor, best known for its high-profile and evidently doomed lawsuits against Novell and IBM, said yesterday it has been given a Nasdaq delisting notice.
SCO said it has requested a hearing to appeal the Nasdaq decision, which came as a result of SCO’s decision last Friday to file for Chapter 11 bankruptcy protection.
The company also filed its 10-Q quarterly report with the US Securities and Exchange Commission on Tuesday, which affixed dollar values to each of SCO’s mounting woes.
On August 10, a Utah judge ruled that Novell, rather than SCO, owned disputed copyrights on the Unix operating system, putting the kibosh on SCO’s intellectual property claims against both Novell and IBM.
The ruling also means that SCO owes Novell some of the money it received under two licensing deals with Sun Microsystems and Microsoft, the amount to be determined at trial.
SCO revealed this week that this payment could have ranged from a negligible amount to over $30m, had Novell been awarded the full $26m plus interest.
SCO had under half the maximum possible payment — just $14.9m — on its July 31 balance sheet, the company revealed in its 10-Q this week.
But the size of the payment is an almost academic question at the moment. As soon as SCO filed Chapter 11, the Novell trial, scheduled to kick off this week, was halted by the court.
As a result of both the Court’s August 10, 2007 ruling and the Company’s entry into Chapter 11, there is substantial doubt about the Company’s ability to continue as a going concern, SCO said in its filing.
SCO’s shares will be kicked off the Nasdaq on September 27 unless its appeal is successful.
