The SCO Group has committed to refocus on its traditional Unix business as well as on its burgeoning mobile products as it aims to generate positive cash flow in the 2007 financial year. 

The company announced its fourth quarter and annual results last night, showing declining revenues and increased losses.
Revenue for the fourth quarter was $7,349-million, compared to $8,528-million for the comparable quarter a year ago. The net loss for the fourth quarter of fiscal year 2006 was $3,743-million, compared to a net loss of $3,431-million in the fourth quarter last year.
The decrease in revenue was primarily attributable to continued competitive pressures on the company's Unix products and services.
"Even though competition is strong and continues to impact our revenue and operating results, we are continuing to develop and promote our Unix solutions and mobile services strategy, as we believe that the market, as well as the benefits to our customers and partners, are significant," says Darl McBride, president and CEO of The SCO Group.
"During the fourth quarter we made adjustments to our operating model and eliminated certain costs. We believe these cost adjustments will allow the Unix business to return to generating positive cash flow for the 2007 fiscal year.
"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."
Revenue for the year ended 31 October 2006 was $29,239-million, compared to $36,004-million for the previous year. The net loss for the year was $16,598-million, as opposed to a net loss of $10,726-million for 2005.
Legal and other expenses in connection with the company's litigation were $2,22-million for the fourth quarter, down from costs of $3,38-million for the comparable quarter a year ago and down from costs of $2,315-million for the third quarter.
The company expects it will continue to incur legal costs and expenses related to ongoing litigation during the 2007 fiscal year, but believes they will be less than they were for 2006.
Cash and cash equivalents, available-for-sale marketable securities and restricted cash to be used for certain legal expenses totaled $12,664-million as at 31 October 2006, compared to $13,312-million the previous yeat.
During the fourth quarter of fiscal year 2006, SCO introduced an upgraded version of SCOoffice Server designed for SCO OpenServer 6 and UnixWare 7.1.4. The company also began shipping SCO HA Clusters, a high availability solution for SCO OpenServer 6 customers that assures the constant availability of applications and data to the customer in the event of a hardware or software failure.
In addition, it has developed a number of Me Inc. mobile services for use on a variety of industry smart phones for business and personal use. These mobile services are made possible through the Me Inc. Mobility Server, which is the back-end server technology based on the company's Unix technology.
During the quarter, SCO announced that it had entered into a strategic business partnership to develop, market, merchandise, and support a suite of Day-Timers branded mobile solutions for business and personal productivity. It is continuing development on the Day-Timers solution, and expects to begin shipping the solution during the second calendar quarter of 2007.