CA Delays Final Results

Computer Associates International Inc. (CA) (NYSE: CA) is delaying its results for the fourth-quarter and fiscal year ended March 31, 2004, as the tremors from the companys financial scandal rumble on. The Islandia, N.Y.-based company, which has been under investigation for its accounting practices, had originally set a reporting date of May 12.

This will now take place a week or two later, according to a statement released by CA this morning. The firm, which is a major provider of mainframe and server systems management software, is clearly still setting its house in order.

On April 26, CA restated certain financials for fiscal year 2000 and 2001 after a report from the company’s audit committee found that a total of $2.2 billion of revenue was booked prematurely.

There has also been a major boardroom reshuffle, which saw CEO Sanjay Kumar step down and Kenneth D.Cron take over as interim chief exec (see CA CEO Resigns and CA Names Temp Chief).

All this brouhaha has obviously been a drain on CA’s resources. In the statement, CA chief operating officer Jeff Clarke says, “Our April 26 restatement was an extensive and time-consuming process -- this effort, which consumed thousands of person hours, unfortunately necessitated a delay in reporting current results.”Clarke also said that CA will defer approximately $4 million of previously recognized revenue from the second quarter of fiscal 2004 and approximately $5 million from the third quarter. The revision is due to an adjustment in the way the company calculates subscription revenue.

CA expects its fourth-quarter revenue to be approximately $850 million, compared to previous guidance of between $845 million and $865 million. Revenue for the full fiscal year is expected to be around $3.28 billion, as compared to previous guidance of between $3.29 billion and $3.31 billion.

Fourth-quarter non-GAAP earnings per share are expected to be in the range of 17 cents to 18 cents for the quarter and 60 to 61 cents for the full year, in line with previous guidance.

In trading this morning, CA shares were down 29 cents (1.04%) to $27.49.

— James Rogers, Site Editor, Next-gen Data Center Forum0