Santa Cruz Operation (SCO) is beginning to see the benefits of improved efficiencies following its reorganisation last year as it turned in modest figures.
Last year, the firm centralised its sales and marketing teams to focus on its core sectors, rejigged its management team and took a $60 million hit in its third quarter to write off channel inventory and introduce an electronic licensing system.
For its first quarter ended 31 December 1998, SCO saw revenue increase by 11 per cent to $52.7 million. Profit rose to $3.1 million compared with $424,000 a year ago.
Doug Michels, president and chief executive of SCO, said: 'These were positive results and a validation that the actions we took to change the business have paid off.'
He added sales had been boosted by an increase in demand for its Unixware 7 OS and e-commerce products.
While SCO's Tarantella middleware is not significantly contributing to revenue, Michels expected its demand generation work would provide some sales this year.
See Sequent article, page 16.
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