SCO has posted a loss of $2.4 million for the quarter that ended July 30th, largely in part to its failing SCO Source initiative and rising legal costs in its cases against IBM, Novell, and others over what it claims to be unlawful inclusion of its intellectual property in Linux. The resulting licensing program, known as SCO Source, has only brought in $32,000 in revenues. SCO claims that licensing with the company will result in legal immunity from its legal department, but many analysts in the industry view the initiative as a groundless threat. Alongside rising legal costs, lower revenues from SCO"s UNIX products are also to blame for the overall decrease in revenues from this same quarter last year.