** Computer Services ** Unix, EDS, Perot, CSC and now CA. Anybody see a pattern here? Like the style of CA -- waiting until the wee hours the day before a holiday.
Monday July 3, 11:54 pm Eastern Time
Company Press Release
SOURCE: Computer Associates International, Inc.
Computer Associates Announces Preliminary First
Quarter Results
ISLANDIA, N.Y., July 3 /PRNewswire/ -- Computer Associates International, Inc. (NYSE: CA - news) today reported that
it expects financial results for the first quarter ending June 30, 2000 to be less than current Wall Street estimates. CA expects
total contract value to be in the range of $1.25 billion to $1.3 billion. This compares to the $1.22 billion recorded in the first
quarter of last year.
The quarter was affected by weak European sales and softness in its mainframe business. CA cited the fact that several large
contracts that were expected to close in the final days of the quarter have been delayed.
Commenting on today's announcement, Sanjay Kumar, CA's president and chief operating officer stated, ``Revenue wasn't as
strong in the quarter as we had hoped. We intend to work aggressively to address the performance issues in our European
business. With the recently completed Sterling Software acquisition and a refocused sales and service organization, we feel very
well positioned to capitalize on further opportunities in the eBusiness marketplace.''
CA is scheduling a conference call with securities analysts for Wednesday morning July 5, 2000 at 8:30am EDT to discuss this
announcement and is scheduled to report final results the evening of July 20, 2000.
Computer Associates International, Inc., the world's leading business software company, delivers the end-to-end infrastructure
to enable eBusiness through innovative technology, services and education. For more information, visit ca.com .
Statements in this release concerning the Company's future prospects are ``forward-looking statements'' under the Private
Securities Litigation Reform Act of 1995. There can be no assurances that future results will be achieved, and actual results
could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially include:
the significant percentage of CA's quarterly sales consummated in the last few days of the quarter making financial predictions
especially difficult and raising a substantial risk of variance in actual results; changes in industry accounting guidance; the risks of
potential litigation arising from the year 2000 date change for computer programs; the emergence of new competitive initiatives
resulting from rapid technological advances or changes in pricing in the market; the risks associated with new product
introductions as well as the uncertainty of customer acceptance of these new or enhanced products from either CA or its
competition; risks associated with the entry into new markets such as professional services; the risks associated with integrating
newly acquired businesses and technologies; increasing dependency on large dollar licensing transactions; delays in product
delivery; reliance on mainframe capacity growth; the ability to recruit and retain qualified personnel; business conditions in the
client/server and mainframe software and hardware markets; uncertainty and volatility associated with Internet and eBusiness
related activities; use of software patent rights to attempt to limit competition; fluctuations in foreign currency exchange rates
and interest rates; the volatility of the international marketplace; and other risks described in filings with the Securities and
Exchange Commission. |
