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Litigation costs push SCO loss to $3.6 million

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Litigation against International Business Machines Corp. has been costly to The SCO Group Inc., but SCO's top executive said Wednesday that the company remains "confident of our claims."

Darl McBride, president and chief executive officer of Lindon-based SCO, acknowledged during a Wednesday conference call that the ongoing IBM lawsuit has been costly in dollars, time and hampering the rollout of new technology. Litigation costs in the most recent quarter alone totaled $2.3 million, although that's lower than $3 million in the year-earlier quarter and $3.8 million in the previous quarter.

"It's been a long, hard-fought battle," McBride said, noting that it will have lasted four years when the scheduled trial begins in February.

"We are somewhat excited to be heading down the home stretch in this litigation with IBM," he said. "A couple of years ago, there was one investor that came out and put some real heat on the company — in fact, on me personally — to have us get out of the product business and, in fact, focus on litigation because they felt that's where the value of the company was.

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