CA returns match expectations

Computer Associates International on Monday reported fourth quarter diluted earnings of $US1.13 per share, up 26 percent from 90 cents reported in the same quarter last year, the company said in a statement. The earnings met Wall Street expectations for the software vendor.

Total earnings for the fourth fiscal quarter ending March 31, 2000, were $551 million, up from $458 million in the same quarter last year. Revenue for the quarter totaled $2.13 billion, up 31 percent from $1.63 billion in the year-earlier quarter, CA officials said.

For the full fiscal year, CA reported earnings per share of $3.28, up 27 percent from $2.59 from the last fiscal year. Revenue for the year was $6.77 billion, up 29 percent from $5.25 billion a year earlier.

The quarterly and yearly income results excluded a $150 million charge related to the acquisition of Sterling Solutions.

A consensus of analysts polled by First Call/Thomson Financial predicted CA would achieve quarterly earnings of $1.13 per share, and earnings for the year of $3.28.

CA software and services, particularly related to the Internet, were the primary areas of growth for the company, CA executives said. "The internet continues to drive growth at CA," Charles Wang, CA chairman and chief executive officer, said in a statement.

The company is in the process of integrating Sterling Software into its operations, and is reorganizing its sales and services staffs, Sanjay Kumar, CA's president and chief operating officer, said in a teleconference. CA announced its intent to acquire Sterling in January for $4 billion.

On May 11, shares of CA dropped $6.25 to $46.8 after the software vendor announced it would delay its fourth-quarter financial results until May 18. In response, the company quickly rescheduled the reporting date to Monday.

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