Computer Associates reports profits in Q1

Thursday, 24 July 2003, 07:00 Hrs
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U.S.-based software giant Computer Associates has announced that it made profits in the first quarter as a result of cost cutting measures despite a challenging economic scenario.

WASHINGTON: Total revenue for the Islandia, New York-based company, in first quarter of fiscal year 2003-2004 was $813 million, a six percent increase over total revenue generated in the first quarter of fiscal year 2002-2003, a company release said.

"We are obviously pleased that we achieved profitability on a GAAP basis sooner than expected," said Sanjay Kumar, the company's Sri Lanka-born chairman and CEO.

Net income for the first quarter was $10 million, or $0.02 per diluted share, compared to the net loss of $65 million, or $0.11 per diluted share, reported in the similar period last year.

"This was made possible by a steady increase in revenue and continued efficiencies in our business," he emphasised, indicating that cost cuts, restructuring and a weak dollar had contributed to the profits.

"We are particularly encouraged by these results because we achieved them in what continues to be a challenging worldwide economic environment," Kumar continued.

"Bookings were strong for this quarter in the highly competitive North American market relative to the prior year's comparable quarter, and we continued to hold or improve our competitive position in this and the other markets that we serve."

Kumar pointed out that for the quarter, new deferred subscription revenue was 16 percent higher on an annualised contract value basis and 20 percent higher than last year on a total contract value basis. He said Computer Associates' leveraging the company's FlexSelect licensing model had made it competitive in services rendered to clients.

"We've been listening very carefully to our customers and offering licensing flexibility and management solutions that reflect their demands, requirements and IT budgets," Kumar said.

The company estimates it will earn revenues in the range of $805 million to $825 million in the quarter ending September 30 this year, and revenues as high as $3.2 billion and more by March 31, 2004.

Source: IANS

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