Computer Associates Q4 net loss narrows
By siliconindia   |   Thursday, 15 May 2003, 19:30 IST
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ISLANDIA: Computer Associates International, Inc. on Wednesday announced financial results for its fourth fiscal quarter and fiscal year ended March 31, 2003. Total revenue for the fourth quarter of fiscal year 2003 was $801 million, a 4 percent increase over total revenue generated in the fourth quarter of fiscal year 2002. CA had estimated its fourth quarter fiscal year 2003 revenue to be in the range of $785 million to $800 million. Net loss for the fourth quarter was $106 million, or $0.18 per diluted share, compared to the net loss of $238 million, or $0.41 per diluted share, reported in the comparable period last year. The company’s recently completed analysis found that approximately $80 million of goodwill associated with its professional services organization was impaired at March 31, 2003, and it has reflected this impairment charge in the fourth fiscal quarter. This result exceeded the Company’s previous guidance of $0.05 to $0.06 per share, principally due to slightly higher achievement of revenue and lower operating expenses than anticipated. Operating earnings/loss per share is a non-GAAP measure as noted in the discussion of non-GAAP results below and the reconciliation of GAAP results to operating results attached to this press release. "In a difficult political and economic environment, IT buyers are increasingly focused and disciplined in their investment decisions and are demanding immediate as well as a long term return on investment," said CA Chairman and CEO Sanjay Kumar. "We gained market presence in fiscal year 2003 by providing the software industry’s most comprehensive and innovative enterprise management solutions. We continued to implement a business model that makes it easier for customers to install and run our software, and features our innovative FlexSelect Licensing. And, most important, employees continued our drive to put our customers’ needs at the center of everything we do," he said. "For the third quarter in a row, our annualized deferred subscription revenue (bookings) has increased over prior-year period comparisons," continued Kumar. "For the full fiscal year, annualized bookings were 13 percent higher than last year. In addition to our flexible subscription business model, CA’s success is driven by our commitment to providing innovative technology and our continued focus on customer service. These key strengths ideally position us for growth when spending for IT improves."

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