SCO caps legal costs as losses mount

Hmm - don’t forget that their lawyers now own a good chunk of SCO… “With its cash reserves dwindling and losses continuing to mount, The SCO Group Inc. is taking measures to cut its expenses and ensure it will have enough cash to process its lawsuit with IBM Corp, the company announced during its quarterly earnings conference call Tuesday. SCO reported a loss of US$7.4 million on revenue of US$11.2 million for the third quarter — a loss that was affected by the US$7.2 million in legal expenses the company incurred during the quarter, which ended July 31.

SCO CEO Darl McBride referred to the legal expenses as a “high water mark” for the company, during a conference call with press and analysts Tuesday, and said that SCO has now worked out a deal with Armonk N.Y., law firm Boies, Schiller & Flexner LLP to cap its legal costs at US$31 million.”