The CA Wildcard

1:00 PM -- The company formerly known as Computer Associates has taken a couple of steps forward and at least three back in its effort to rebuild itself. And the hesitant dance could impact the storage software market in unexpected ways.

Early today, CA postponed its latest SEC report and canceled its June 8 Wall Street analyst day because it must restate its latest quarterly earnings. (See CA Delays Earnings Report.) Revisions include an estimated $947 million in quarterly revenue, in the low end of the company's already downward-revised guidance. There will also be a loss of $.07 per share instead of a $.02 profit, resulting from a failure to properly account for sales commissions.

Further adjustments may be necessary, CA acknowledged in a statement today.

The news comes just two weeks after CFO Robert Davis left the company "under mutual agreement." (See CA CFO Leaves.) Apparently, the guy who gave the keynote on "Rebuilding Financial Controls" at a show for corporate treasurers in March could have better spent the time back at the office.

All this has investors on the run. In late morning trading, CA's shares were at a new 52-week low, selling for $21.34, down .82 (3.70%).The larger question, though, is how the fresh set of woes at CA could impact the storage market. The latest snafus are likely to get customers, especially would-be ones, glancing outward. That could be good news for a few larger competitors, such as Symantec, but it could also open the way for momentum in the SRM market, as newer players like CommVault take root and startups challenge the status quo.

CA's latest news widens the crack in the base that's held the giants of the IT world. Like Sun, which Byte and Switch readers consider in trouble, according to our latest poll, CA must re-establish itself on new ground. While it struggles to do so, it cedes any competitive edge to others.

Mary Jander, Site Editor, Byte and Switch

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