The SCO Group will restate its financial results for last year, blaming "accounting errors" for the failure to produce its annual report within deadline. The company is hoping to prevent being delisted from the Nasdaq stock exchange.
Last month, SCO claimed the filing delay was due to a re-examination of stock grants made under the company's employee compensation plan. But in a new statement, the company said it also expects to reclassify dividends related to a $50 million October 2003 investment in the company made by BayStar. SCO repurchased all shares of Baystar's A-1 Convertible Preferred stock in July 2004.
The restatement will not affect the company's previously reported net loss or its earnings per share for the fiscal year, the company said.
It may however have to repurchase certain shares purchased under its employee stock purchase program that were not properly registered during the first three quarters of SCO's fiscal year. SCO will also have to restate $233,000 in stock compensation recorded in the second quarter that actually occurred in the first quarter, the statement said.
In December, SCO reported a net loss of $23.4 million for 2004, a year in which it spent nearly $20 million in legal fees on its lawsuits with IBM and others over intellectual property issues in Linux.
The Nasdaq Listing Qualifications Panel has scheduled a hearing on SCO's delisting for 17 March.
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