Computer Associates International (CA) reported a 7 percent revenue increase in its fourth quarter compared to last year, as it closed the books on a year that was one of the most tumultuous in the software vendor's nearly thirty-year history.
CA ended the fourth quarter with revenue of US$910 million, up from last year but short of the $918.6 million consensus forecast of analysts polled by Thomson First Call. CA's net income for the quarter was $17 million, giving it per-share earnings of $0.20 excluding special charges, in line with analysts' expectations. CA's per-share earnings calculation excludes settlement charges, some noncash acquisition costs, restructuring costs, and several tax charges.
For the 2005 fiscal year, ended March 31, CA reported net income of $10 million, down from $25 million in the prior year. Revenue was US$3.5 billion, up 8 percent from its 2004 fiscal year. The year included $262 million in expenses related to CA's settlement agreements with shareholders, the U.S. Department of Justice and the U.S. Securities and Exchange Commission stemming from a multibillion-dollar accounting fraud the company perpetrated in its 2000 and 2001 fiscal years. CA prematurely booked more than $2 billion in sales to hide weaker-than-expected quarterly results during those periods.
A number of former CA executives have pleaded guilty to civil and criminal charges, while ex-Chief Executive Officer Sanjay Kumar has pleaded not guilty to the fraud and obstruction of justice charges leveled against him. With all of the executives implicated in the fraud now gone, CA has focused this year on rebuilding its executive team. CEO John Swainson assumed the top job in February after several months of training time at CA.