The SCO Group Announces Strategic Plan and Management Change

Mon Oct 19, 2009 2:42pm EDT
 
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LINDON, Utah, Oct. 19 /PRNewswire-FirstCall/ -- The SCO Group, Inc., (Pink
Sheets: SCOXQ) a leading provider of UNIX® software technology, today
announced a restructuring plan following an analysis of the company's
operations and cost structure undertaken by Chapter 11 Trustee, Edward Cahn
and his advisors. 


The company expects to finalize details of the restructuring and to reach cash
flow breakeven for core operations within the next month. The savings are a
combination of non-workforce related changes and a modest reduction in SCO's
workforce.  As part of the restructuring, the company has eliminated the Chief
Executive Officer and President positions and consequently terminated Darl
McBride.  The current management team comprised of Chief Operating Officer,
Jeff Hunsaker, Chief Financial Officer, Ken Nielsen and General Counsel, Ryan
Tibbitts, will continue to work closely with the Chapter 11 Trustee and his
advisors to implement the restructuring plan, move the intellectual property
litigation forward with Boies, Schiller & Flexner, LLP and emerge from Chapter
11 bankruptcy. 


The company is also looking to raise additional funding and sell non-core
assets to bolster working capital.  These actions will allow the Trustee to
preserve cash and the value of the business while enabling the Company to
proceed with asset sales, pursue litigation against, among others, IBM and
Novell, and to continue supporting SCO's loyal UNIX customer base. 


"These actions, while difficult, are essential to SCO becoming a more agile
and efficient company, not just for this year, but for years to come," said
Mr. Hunsaker.  "This restructuring plan reinforces SCO's ability to continue
to sell and support its products while servicing the needs of our customers
and partners on a worldwide basis through the stabilization of our financial
situation."


Forward Looking Statements
The statements contained in this press release regarding (1) the Company's
plan of reorganization and (2) the Company's financing efforts are
forward-looking statements and are made under the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.  These statements are
based on management's current expectations and are subject to risks and
uncertainties. We wish to advise readers that a number of important factors
could cause actual results to differ materially from historical results or
those anticipated in such forward-looking statements. These factors include,
but are not limited to, outcomes and developments of our restructuring plan,
outcomes and developments of our Chapter 11 case, court rulings in our
bankruptcy proceedings, the impact of the bankruptcy proceedings on our other
pending litigation, and our cash balances and available cash. These and other
factors that could cause actual results to differ materially from those
anticipated are discussed in more detail in the Company's periodic and current
filings with the Securities and Exchange Commission, including the Company's
Form 10-K for the fiscal year ended October 31, 2008, as amended, and future
filings with the SEC. These forward-looking statements speak only as of the
date on which such statements are made, and the Company undertakes no
obligation to update such statements to reflect events or circumstances
arising after such date.


About SCO 
The SCO Group (SCOXQ.PK) is a leading provider of UNIX software technology.
Headquartered in Lindon, Utah, SCO has a worldwide network of resellers and
developers. SCO Global Services provides reliable localized support and
services to partners and customers. For more information on SCO products and
services, visit www.sco.com. SCO and the associated logos are trademarks or
registered trademarks of The SCO Group, Inc. in the U.S. and other countries. 






SOURCE  The SCO Group, Inc.

Chantell Ferrin of SCO Group, Inc., +1-801-932-5760, cferrin@sco.com

 

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