The SCO Group's revenue kept on sliding during the first quarter, although the company did reduce losses.

SCO pulled in $6m last quarter – down from $7.3m in the same period last year. Thankfully for the IP defender, SCO's legal costs fell, helping it to a tidy $1m loss – an improvement over last year's $4.6m loss. Shrinking Unix software sales remain the primary cause for SCO's revenue dip, according to officials.

"The cost structure that we put into place at the end of the fourth quarter of fiscal year 2006 as well as reduced litigation expenses allowed us to reduce both operating costs and cash used in the business," said Darl McBride, CEO at SCO. "We are committed to our Unix business, introducing new mobile services and defending our intellectual property rights through the legal system."

SCO lawyers made just $654,000 during the first quarter. That's got to hurt the attorneys' cash flow, since they brought in $4m in the same period last year.

The product people at SCO had a tough run during the first quarter with Unix software sales falling to $4.9m from $6m. The SCOsource licensors did just as bad, bringing in a paltry $23k – down from $30k. SCO's services revenue fell as well to $1.1m from $1.3m.

SCO exited the quarter with $11.6m. ®

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