LINDON, Utah, Sept. 14 /PRNewswire-FirstCall/ -- The SCO Group, Inc.
("SCO") (Nasdaq: SCOX), a leading provider of UNIX(R) software technology
and mobile services, today announced that it filed a voluntary petition for
reorganization under Chapter 11 of the United States Bankruptcy Code. SCO's
subsidiary, SCO Operations, Inc., has also filed a petition for
reorganization. The Board of Directors of The SCO Group have unanimously
determined that Chapter 11 reorganization is in the best long-term interest
of SCO and its subsidiaries, as well as its customers, shareholders, and
The SCO Group intends to maintain all normal business operations
throughout the bankruptcy proceedings. Subject to court approval, SCO and
its subsidiaries will use the cash flow from their consolidated operations
to meet their capital needs during the reorganization process.
"We want to assure our customers and partners that they can continue to
rely on SCO products, support and services for their business critical
operations," said Darl McBride, President and CEO, The SCO Group. "Chapter
11 reorganization provides the Company with an opportunity to protect its
assets during this time while focusing on building our future plans."
The SCO Group has filed a series of first day motions in the Bankruptcy
Court to ensure that it will not have any interruption in maintaining and
honoring all of its commitments to its customers. The motions also address
SCO's continued ability to pay its vendors, the retention of various
professional advisors, and other matters.
The SCO Group (Nasdaq: SCOX) is a leading provider of UNIX software
technology and mobile services. SCO offers UnixWare for enterprise
applications and SCO OpenServer for small to medium businesses. SCO's
highly innovative and reliable solutions help customers grow their
businesses everyday, especially into the emerging mobile market. SCO owns
the core UNIX operating system, originally developed by AT&T/Bell Labs and
is the exclusive licensor to UNIX-based system software providers. The Me
Inc., product line focuses on creating mobile platforms, services and
solutions for businesses and enhances the productivity of mobile workers.
Headquartered in Lindon, Utah, SCO has a worldwide network of thousands
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 http://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.
Forward Looking Statements
The statements contained in this press release regarding (i) filing for
protection under Chapter 11 and our reorganization efforts under Chapter 11
bankruptcy protection, and (ii) other statements that are not historical
facts 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 the outcomes and developments
in our Chapter 11 case, court rulings in the bankruptcy proceedings, the
impact of the bankruptcy proceedings on our other pending litigation, our
cash balances and available cash, continued competitive pressure on the
Company's operating system products, which could impact the Company's
results of operations, adverse developments in and increased or unforeseen
legal costs related to the Company's litigation, the inability to devote
sufficient resources to the development and marketing of the Company's
products, including the Me Inc. mobile services and development platform,
and the possibility that customers and companies with whom the Company has
formed channel partnerships will decide to terminate or reduce their
relationships with the company. 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, 2006 and Form 10-Q for the fiscal
quarters ended January 31, 2007 and April 30, 2007, 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
SOURCE The SCO Group, Inc.