NEW YORK (07/05/2000) - Computer Associates International Inc. (CA) shares plummeted Wednesday, losing more than 40 percent of their value by mid-day, in the wake of a company warning on Monday that results for the first quarter of 2000 will not match forecast estimates.
By mid-day Wednesday, CA shares dropped by US$29.75 to $21.36. Before trading on Wednesday, the company's 52-week high share price was $79.44, and its 52-week low was $42.31.
On Monday, the company said it expected total contract value for the first fiscal quarter of 2000 to be between US$1.25 billion and $1.3 billion. This would be only slightly better than the $1.22 billion for the first quarter of last year. CA said the poor expected results are due to weak European sales and softness in its mainframe business.
U.S. exchanges closed early Monday and were closed Tuesday in observance of the country's Independence Day celebration. Wednesday morning, CA reiterated its Monday warning to industry analysts on a conference call and gave further details.
Final results for the quarter are scheduled to be released on July 20.
(More details to follow.)
CA, in Islandia, New York, can be reached at +1-516-342-5224 or at http://www.cai.com/.
(Rick Perera in Berlin contributed to this report.)