The Santa Cruz Operation Inc reported third-quarter net income of $4.5m on revenue up 126% at $57.1m, compared to a net loss of $21m in the year-ago quarter. Earnings per share for the quarter came in at $0.13, a penny better than Wall Street expectations. Results for the year-ago quarter were hit by a $16m charge for the write-down of inventory with distributors and resellers.
SCO says the solid results were mostly attributable to continued demand for OpenServer and UnixWare 7 systems on the back of growth in internet commerce. Sales were said to be strong across all geographies. The results marked the fourth consecutive quarter of sequential growth in revenues, operating income, and earnings per share for the company.
Gross margins exceeded 78%, up from 77.7% and 77.5% in the second and first quarters of 1999, respectively. Electronic licensing revenues were over $11m for the quarter, up from just $500,000 in the year-ago period. The company reckons that increased e- commerce activities have not only increased gross margins but helped grow revenues as well. SCO finished the quarter with short-term investments of roughly $53.9m, up slightly from the prior quarter. For the nine-month period, net income was $11.5m, or $0. 32 per share, on revenue up 34.3% at $165.5m, against a net loss of $17.3m last year.
