CA revenue grows, net loss narrows

CA revenue grows, net loss narrows


Computer Associates International on Tuesday posted a 5 per cent year-over-year revenue increase for its second fiscal quarter, while narrowing its net loss.

CA generated revenue of $US772 million, up from $733 million in 2001's second quarter. Net loss for the quarter, ended September 30, was $52 million, down from last year's $291 million net loss.

CA's net operating income for the quarter was $22 million, which translates to per-share operating income of $0.04. The consensus estimate of analysts polled by Thomson Financial/First Call was for operating earnings per share of $0.02.

Customers are buying, but on an "as-needed" basis, CA chief executive officer Sanjay Kumar said in a statement.

He praised CA's subscription-focused licensing model as well-suited to the current buying climate, in which customers appear to be seeking shorter-term deals. The average duration of CA's new contracts signed during the second quarter is 2.8 years, the company said, slightly shorter than its target three-year average duration goal.

CA's professional services revenue continued dwindling, dropping 18.9 per cent to $60 million, down from $74 million in the year-ago quarter.

Last quarter, Kumar identified the sector as a problem area for CA, and said the company would be making changes. In the statement accompanying Tuesday's results release, Kumar cited reduced industry spending on consulting services as one factor behind the unit's continuing revenue decline.

Before the financial release, shares of CA closed down 6.1 per cent, at $12.10, on the New York Stock Exchange.

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments