CA's statement concerning the charges:
following my question to you:
Is it now time to get back it before the investigation reveals it true? or Should we ignore the company's statement and short some more? Any comments?
"Computer Associates Issues Statement
Company To Hold Conference Call Friday, 9 am EST
ISLANDIA, N.Y., Feb 21, 2002 /PRNewswire-FirstCall via COMTEX/ -- Computer Associates International, Inc. (CA) today issued the following statement:
"Contrary to a Bloomberg news report filed today, Computer Associates has not drawn on its credit lines to pay down its commercial paper obligations. CA's outstanding commercial paper obligations can be covered by cash on hand as well as cash generated from operations and the Company has sufficient cash flow to fund its daily operations.
The company said it had drawn from one of its credit lines to replace another credit line, with no net increase in total debt. The decision to move funds between credit lines was a function of the anticipated close of the financing that had been scheduled to close on February 6.
CA's financial position is strong and, as stated on its January 22, 2002 fiscal 3Q earnings call, the Company has been a net repayer of debt. The Company reduced its total debt by $200 million in January. Total debt at January 31 was approximately $3.6 billion. Since February 1, 2002, the company has paid down an additional $200 million. Total debt at the end of February is expected to be approximately $3.4 billion. The company said it has generated more than $1 billion in operating cash flow in each fiscal year since and including fiscal year 1998, and noted that its current quarter is its historically strongest cash generating quarter."
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