The SCO Group is in danger of losing its Nasdaq listing for failing to file its 2004 annual report on time.
The company intends to request a hearing on the matter, which will delay its removal, but from today it will trade under a modified ticker symbol - SCOXE rather than SCOX - to indicate its delinquent filing status.
SCO said Nasdaq notified it on Wednesday of the potential delisting. The company has not filed its 10-K annual report for its 2004 fiscal year which ended 31 October, within the required 90-day time frame. SCO attributed its delay to an examination of stock grants related to the company's compensation plans.
SCO warned in an SEC filing two weeks ago that it would be late filing its report because its auditor, KPMG, had requested additional documentation. "Our plan is still to get this resolved in short order," said an SCO spokesman. "Everything with our 10-K is ready except for this accounting treatment."
SCO's revenue for the year has dropped 46 percent, to $42.8 million, while its 2003 profit turned into a $23.4 million net loss in 2004. SCO spent nearly $20 million last year on legal fees in its legal battle with IBM and others about Linux-related intellectual property claims.