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[News] SCO Down ~10% After Execs Discuss Finances, Shares a Problem with the MSN 'Money Drain'



"-0.09 (-9.18%)"

MSN remains Microsoft's weakest link

,----[ Quote ]
| What's more, Microsoft's online services division lost $200 million
| during the quarter, bringing operating losses at the unit to $494
|                              ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
| million for the first three quarters of this fiscal year.  
| ^^^^^^^


When ODF eliminates the cash cow, Microsoft will empty its safe, from which
over half has been lost in the past two years. Vista has already committed
suicide (the point of no return/repair), so need need for the ODF of the
operating systems.


SCO About to Face Delisting Trouble, Again

,----[ Quote ]
| Nasdaq regulations require that for a stock to stay listed, it needs
| to be traded at a minimum price of $1.00. You can find out more about
| the regulations here. The relevant quantity here is the closing bid
| price, which is the last price a potential buyer offered for the
| stock. While the bid price may differ slightly from the closing
| price, it is still a reasonable indicator. Looking at the recent
| closing prices of SCOX you will notice that they closed below
| $1.00 for about 20 consecutive business days. After 30 business
| days below the minimum, Nasdaq will send a deficiency notice
| giving them 180 days before they face a delisting letter. During
| this period the company will be required to bring the stock up to
| the minimum for at least 10 consecutive business days.


Darl McBride destroying SCO: bankruptcy looms

,----[ Quote ]
| SCO has long been sueing IBM for using SCO intellectual property in
| Linux and AIX product. Linux lovers will applaud the downfall, if
| it happens - which, no doubt whatsoever, they devoutly wish - of
| Darl McBride's disputacious and deeply disreputable company.
| I'm just glad that people who once worked for SCO in the UK can
| relax in the knowledge that their pensions are safe even though
| the company, which many once loved, has been taken to the brink
| of disaster by its present management.


SCO Plans Con Call to Discuss Earnings, Layoffs

,----[ Quote ]
| The SCO Group Latest News about SCO Group, long tight-lipped about
| issues ranging from its recent courtroom setbacks and finances to
| rumored layoffs Latest News about layoffs, has set a conference
| call for 3 p.m. Jan. 17.


SCO bankruptcy called imminent

,----[ Quote ]
| If this is the end it seems to leave Novell in a curious position.
| In its deal with Microsoft, Novell appears to have granted Microsoft
| the power to claim that Microsoft holds the same kinds of rights to
| Linux that SCO claimed, and fourth quarter downloads indicate that
| many customers are taking those claims seriously.


,----[ Quote ]
| The media reaction to SCO's flurry of press releases and teleconference
| yesterday is intriguing. Just from the headlines, you can see how well it
| did or didn't go.
| [...]
| "If people think SCO has gone crazy or 'MAD' it's now official,"
| McBride said.


The Goldfarb Declaration - Updated: MS Statement

,----[ Quote ]
| According to the Declaration, Richard Emerson was not the only
| Microsoft employee Goldfarb was dealing with in connection with the
| BayStar investment in SCO. He mentions by name two others, from two
| other departments.


IBM's Memo in Support of its Motion for SJ on SCO's Interference Claims

,----[ Quote ]
| BayStar, Goldfarb testifies, dumped SCO because its stock price,
| financial performance and the viability of its UNIX products
| all appeared to be in decline, and he "was also very concerned
| about SCO's high cash burn rate." Pure financial animals get
| nervous when that happens. But the kicker was he began to
| realize that Microsoft, whose senior VP of corporate
| development and strategy had promised that Microsoft would in
| some way guarantee the SCO investment, started showing signs
| it might not do that after all:
|     "Mr. Emerson and I discussed a variety of investment
| structures wherein Microsoft would 'backstop,' or guarantee in
| some way, BayStar's investment.... Microsoft assured me that
| it would in some way guarantee BayStar's investment in SCO." 
| Let me interrupt my narrative to quickly ask, Why ever would
| Microsoft guarantee BayStar's investment in SCO? What would be
| the business purpose here? What would Microsoft's benefit or
| payback be? What were they hoping for as the return on the
| investment? And why didn't they wish to invest directly? Pray
| do explain. Joke. Joke. Anyhow, after the investment was
| made, Goldfarb says, "Microsoft stopped returning my phone
| calls and emails, and to the best of my knowledge, Mr.
| Emerson was fired from Microsoft."
| Ah! The well-known Microsoft 180. Kiss kiss, let's do a
| deal. Drop dead. 


,----[ Quote ]
| "There you have it. At least a third of SCO's entire market
| capitalization, and their entire current cash reserves, is payoffs
| funnelled from Microsoft. Their 10Qs reveal that every other line of
| cash inflow is statistical noise by comparison. The brave new
| SCO source business model is now clear: sue your customers, shill
| for Microsoft, kite your stock, and pray you stay out of jail."


Software Notebook: Microsoft's cash pile isn't what it used to be

,----[ Quote ]
| But Microsoft has taken a series of steps to reduce its cash
| balance. Specifically, by Microsoft's count, the company has
| paid out nearly $100 billion through dividends and repurchasing
| its own stock in the past five years.


Loot: Redmond, We Have a Problem, Or, What's Wrong With the Xbox 360

,----[ Quote ]
| At this point, Former becomes impassioned. That's not fair, he says;
| we always saw this as a long-term venture. To which we reply that we
| were talking about the original Xbox, and while other divisions of
| the company throw off more profits in a single quarter than the
| entire $5 billion or so lost in the home and entertainment division
|        ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
| to date, the fact remains that, as we take-our-word-for-it predicted,
| the Xbox group has been spectacularly unprofitable for Microsoft.
| Hence, our heretofore unpublished Vietnam analogy. The rest of the
| night is a blur, but we digress.
| [...]
| The worst case scenario for Microsoft, then, is one in which the Xbox
| 360's bid for the mass market is blocked by the Wii for the next two to
| three years, at which point the aging and underpowered Wii gives way
| to a cheaper-than-it-is-now PS3 with a selection of AAA titles that's
| far wider than what the PS3 has at the moment; new installments of
| Playstation's own popular and casual-leaning games; and a slew of
| new franchises from Sony's much-larger studio operation.


The Secret Failures of Microsoft

,----[ Quote ]
| There is no choice involved; even most Linux users are forced to pay for a
| Microsoft license in order to obtain a brand name PC.
| [...]
| They are bound to an oath to swear allegiance to Windows XP Professional,
| and must never mention Linux and Windows in the same breath. If they step
| out of line in any way, Microsoft dramatically raises their OEM licensing
| fees and sends them to indoctrination camp, where they face chairs being
| hurled at them by angry monkeys.
| [...]
| Why do Windows enthusiasts exibit much hostility to an obvious fact?
| Because if they admit that 80% of the company's revenues come entirely
| from an OEM tax, and not from any choice on the part of consumers...
| [...]
| Microsoft's decade of investments in WinCE and Windows Mobile
| Smartphones have only barely matched the market share of Palm, which
| itself is a run down company out of ideas. Microsoft couldn't
| out-maneuver the incompetent Palm within a decade of trying; now both
| are ineffectually fighting over the dying PDA industry while Linux and
| Symbian slaughter them in the smartphone arena:
| Symbian 75%; Linux 14%; Microsoft 5%; Palm 5%.
| [...]
| (many more failures listed)


How Much is Too Much?

,----[ Summary ]
| Microsoft says it will stick with Xbox. But with years of heavy losses
| behind it, the pressure's on for the gaming division to make good


Microsoft stoic despite massive losses

,----[ Quote ]
| If you were to judge by the PR rhetoric, you'd think the 360 was
| an unstoppable commercial juggernaut. As usual though, PR lies.


Microsoft Hides Its Mobile and Business Apps Divisions

,----[ Quote ]
| The company is folding its two worst-performing divisions -- Microsoft
| Business Solutions (its business applications unit) and its Mobile and
| Embedded units -- into the Microsoft Business Division and Microsoft Home
| and Entertainment units, respectively.


A Dozen Stocks For '07

,----[ Quote ]
| Millen also thinks $36 billion in planned share buybacks
| will help the stock.


Microsoft counts on Vista to recharge stagnant stock

,----[ Quote ]
| There was a time in the 1990s when shares of Microsoft stock seemed to
| double every couple of years. 1996: college for the kids. 1998: a place
| on Whidbey. 1999: early retirement.
| Times have changed.


Commentary: Microsoft needs more than just buybacks to lift its shares

,----[ Quote ]
| Microsoft shares, which have been dormant for the last few years,
| have been looking up over the last couple months. The Dow industrials
| component has gained about 20% since hitting a 4-year low of $21.46 o
| June 13.
| To help move things along, Microsoft not only launched a $40 billion
| stock repurchase program that lasts through 2011, the company also said
| its previously announced 4-year, $30 billion stock buyback program was
| completed in just 2 years.


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