The SCO Group Press and Analyst Teleconference - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Hello and thank you for joining today's SCO foreign press call. For your information, this call is being recorded for future listening. For opening remarks, I would like turn the call over to Mr. Blake Stowell. Please go ahead, sir.

BLAKE STOWELL, IR, SCO GROUP: Thanks very much and thanks everyone for joining us today. We're here at SCO Forum in Las Vegas where we have already heard keynotes from Darl McBride, our President and CEO, and a number of other individuals. We are at our press conference room right now and joined by members of the media and analyst community as well as our executive team.

Just a few introductions so you're all aware of who is here and who you may be able to ask questions of. We have Darl McBride, our President and CEO; Sandy Gupta, our CTO and General Manager of Platforms Division, Chris Sontag our senior vice president and general manager of the Me Inc. Applications Division; we have Bert Young, our CFO; Andy Nagle, our Director of Product Management over all EdgeClick technologies, and [Alan Raymond], our Vice President of Americas Sales.

We will turn the time over to Darl McBride to make some opening remarks. After he is finished, we will first take questions from those who are here with us in Las Vegas at SCO Forum. And after they are finished asking their questions, we will open up the phone lines for those of you who are on the line to ask questions. So with that, I'll turn the call over to Darl McBride.

DARL MCBRIDE, CEO, SCO GROUP: Thanks, Blake, and thanks all of that are here locally as well as those of you who have joined us on the call today. Today is a big day for SCO as we look at the announcements that went out this morning, you've seen them on the wire by now. We believe that the announcements that have gone out today mark really the full turning point in the company going forward, a turning point from the situation where we had product lines around the down hillside, we're in the middle of this big legal battle that will come to the courtroom here in six months and being in a pretty tenuous state as a Company a couple of years ago. We have gone back and invested -- you remember last year at SCO Forum, we came back and announced we had OpenServer 6. It has been critically acclaimed as a great piece of software. We're now starting to get traction on that. And the big thing that you will see with the announcements today that are on the wire and you would see them in spades if you were here locally is the launch of our new mobility platform that we call Me Inc. We've been talking about this for awhile, we've some of the products in the marketplace here for a few months, but today really is the coming-out party for Me Inc. We will go through and talk about this as we go through the Q&A section today. But basically what you see today announced is the partnerships that come in that really give the strengthening to the -- foundation to the Me Inc. platform. You see an announcement out there today with Microsoft, you see a partnership announced with Palm, you see an announcement with Day-Timers in terms of how we go to market with this infrastructure, and you see an announcement out there that we are commercially going to market now with HipCheck, which is a new Me Inc. application or service that sits on top of the EdgeClick platform.

The employees here at SCO are genuinely excited. I would describe it to be almost in a giddy state. People can see the opportunities that are coming. We have a pipeline that is filling up with opportunities. We truly are moving into a growth mode I believe going forward. I'd say that a little bit cautiously in that the revenue has not started to flow yet, but having been through a number of startups in the last 20 years of my life, you get a sense of when things are about ready to go in an upward fashion and in a growth fashion. And based on where we are with the products, where we are with the pipeline and where we are with our partners and how -- the reception we're getting to this, it truly is an exciting time for the Company.

We are not here at this conference to talk much about the lawsuit. We addressed it very briefly in my keynote this morning. And basically, the point that we made is, look, we're going to have our day in court here in six months. We have been fighting this high-profile litigation battle to protect our intellectual property going on four years now. We have spent nearly $50 million in that battle and we are very much looking forward to having our day in front of the jury of our peers to be able to get our case laid out in front of them and to go from there. We believe very strongly in our case. We think we have a very strong case. We are looking forward to having that day in front of the courts.

So with that said, the legal case is moving forward. The SCO UNIX business, new products in the marketplace. We're starting to get some uptick on some new OpenServer 6 deals. But the big news I guess of today is the fact that we have launched this new mobility product line that we call Me Inc. with the surrounding partnership infrastructure and services. And we're ready to get back into business and we think that the business we're getting that augments our current business of SCO UNIX is going to be huge. We see a billion devices out there shipping today, we see 2 billion that are going to be shipping within a few years from now. Yet, there is not a strong mobile application platform for how you deliver an application or service into these devices. That's what we're doing. SCO has been a leader in providing automation (technical difficulty) back-end services for enterprises and for branch offices. Now we're just extending that wave out one more tier to the level of the -- what we're calling the mobility marketplace. We want to provide a level of personal automation down to the class of mobile device users and invite our third-party ISV friends, our vertical solution partner friends in to develop their applications and business logic on top of this platform. And we are very bullish on where that all goes.

So that's basically the kickoff set of statements from SCO at this point, and Blake, how do you want to do the Q&A. Open it up?

BLAKE STOWELL: We're going to turn it over to those who …