CA Reports Narrower Loss

 
 
By Paula Musich  |  Posted 2002-07-22 Print this article Print
 
 
 
 
 
 
 

The Islandia, N.Y. software maker failed to reach its revenue projection of $770 to $775 million, reporting a revenue total of $765 million for the quarter.

Computer Associates International Inc. today reported a net loss of $65 million in the first fiscal quarter of 2003, a considerable improvement from the $342 million loss it reported in the same quarter one year ago. The Islandia, N.Y. software maker failed to reach its revenue projection of $770 to $775 million, reporting a revenue total of $765 million for the quarter. That was down sequentially from $772 million in the fourth fiscal quarter of 2002, according to the earnings report.
CA officials revised revenue for the full 2002 fiscal year to $3.1 to $3.2 billion, compared to its earlier forecast range of $3.2 to $3.26 billion.
"In a difficult environment we performed well," said president and CEO Sanjay Kumar in CAs earnings call late today. "The new business model helps customers get into new products by buying in smaller increments. Our ability to do month-to-month licenses continues to add tremendous value to our business in this environment." CA in the first quarter saw continued trends among customers to strike much smaller deals, and focus "on immediate terms and tactical solutions for near-term problems," said Kumar. CAs European business continued to hold steady. CAs shrinking professional services operation however, saw a decline of 22 percent in revenue year over year, officials said. CA later this year is facing another challenge to the makeup of its board of directors from Ranger Governance, backed by investor Sam Wyly. In addition to proposing its own slate of directors, Ranger Governance is proposing other changes to CA corporate governance practices, including requiring the CFO to report directly to the board of directors. Kumar characterized the changes Ranger Governance is proposing as "silly" and "divisive." "What theyre suggesting are things that practical companies--including CA--are doing today," he said.
 
 
 
 
 
 
 
 
 
 
 

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