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SCO stock drops 72%

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SCO stock drops 72%

Following a sobering ruling in its trial against Novell, SCO’s stock was forced down 72% during the Monday trading session. The stock had closed at $1.56 last Friday and opened at $0.45 this morning. The stock closed at $0.44 today, translating into a market capitalization of the company of $9.43 million. On Friday, SCO was valued at about $33.4 million.

SCO stock reached a high of $19.41 on September 19, 2003, during the frenzy of its lawsuit against IBM and the beginnings of the firm’s strategy to collect license fees from Linux users. The company had a market capitalization of close to $415 million back then.

According to a brief statement filed with the Securities and Exchange commission today, SCO conceded that it is “disappointed by the Court’s adverse ruling regarding ownership of copyrights covering the UNIX operating system”, but stated that “it owns the copyrights to the technology developed or derived by SCO after Novell transferred the assets to SCO in 1995” and that the “case has not yet been fully vetted by the legal system.”

SCO also said that the court did “not dismiss our claims against Novell regarding the non-compete provisions of the 1995 Technology License Agreement relating to Novell’s distribution of Linux” and sated that “those issues remain to be litigated.”