Who said this? "Some of the negativity is warranted. If you just look at the numbers, the scoreboard over the last few years, it's not a real pretty picture." Huh?

Just look at the numbers? What else do you look at in a financial report? But this is SCO CEO Darl McBride speaking and we are in the SCO version of a reality distortion field. Let's look at just a few of his numbers.

Fy 06 Q4 revenue: $7.35 million compared to fy 05 Q4 revenue of $8.53 million.
Fy 06 Q4 loss: $3.74 million compared to $3.43 in the year ago quarter.

Fy 06 revenue: $29.24 million compared to fy 05 revenue of $36 million.
Fy 06 loss: $16.6 compared to the previous year's loss of $10.3 million.

So it lost more money this year than last year, more money this quarter than the year ago quarter, and its revenue trend is down. How come the SCO board employs Darl McBride as CEO? Does he have a special contract which forbids them from firing him?

Just a few more numbers:

Twenty four people have lost their jobs in an effort to save expense and headcount is now 142.

Cash/cash equivalents on hand: $12 million.
Novell royalty claim: $26 million.
Gap: $14 million.

During the results conference call McBride did not address the company-breaking legal threat from Novell at all. Sorry. Not on the company radar screen. I see no ships.

SCO's strategy to turn itself around? "The Company continues to make progress in the development of its Me Inc. mobile services platform and applications. We remain committed to our UNIX business, introducing new mobile services to the marketplace and defending our intellectual property through the legal system."

In other words, same old, same old. The polite name for such a strategy is the Eleventh Option - as in chapter 11. The mobile services generate peanuts and are a wild card. The legal costs are running at over $2 million a quarter. SCO used up $10 million in Q4 06. But it doesn't have a lot of long term debt, about $1.3 million. It can stagger on for a year, perhaps two, at this rate, until IBM outspends and out-fights it in court, unless Novell gets its summary judgement, in which case it's crash and burn time.

This is going to be a Harvard Business School case study in how not to run a business.