SCO has filed its latest annual report with the Securities and Exchange Commission, and it makes grim reading.

The company warns that its shareholders could end with nothing because: "A plan of reorganization could result in holders of our stock receiving no distribution on account of their interests and cancellation of their existing stock." SCO is Chapter 11 - US bankruptcy protection.

It warns that its court case with Novell might have to be abandoned if its assets are frozen.

Revenue from SCO's Unix business fell 26 per cent compared to last year to $21.6m and it made a loss of $2.9m. SCO said: "The revenue from our UNIX business has been declining over the last several years primarily as a result of continued competition from alternative operating systems, particularly Linux and from the negative publicity of the SCO Litigation."

The complete 10K is here. ®