From their web page:
COMPUTER ASSOCIATES POSTS THIRD QUARTER FINANCIAL RESULTS
Client/Server Revenue Increases 31%
ISLANDIA, N.Y., January 19, 1999--Computer Associates International, Inc. (NYSE: CA) today reported
financial results for its third fiscal quarter.
For the quarter ended December 31, 1998, revenue was $1,361,141,000, up 10% versus the $1,239,012,000
reported in the previous year. Client/Server revenue was $621 million, up 31% from the $474 million in the
prior year. Third quarter earnings per share (diluted), were $.64, compared to $.60 a year ago, an increase
of 7%.
For the nine months ended December 31, 1998, revenue was $3,624,118,000 compared to the
$3,251,877,000 reported in the first nine months of last year. Revenue for the nine months increased by
11% from the prior year. Client/Server revenue for the nine months was $1.7 billion, up 30% versus the
$1.3 billion reported last year. Earnings per share (diluted), excluding special charges, were $1.49, an
increase of 10% over the $1.36 for the prior fiscal period.
All per share amounts have been adjusted for the Company's three-for-two stock split effective November
5, 1997.
"Computer Associates performed well during the quarter," said Charles B. Wang, CA chairman and chief
executive officer. "Our business showed solid growth during the quarter and the software marketplace as a
whole remains vibrant as technology continues to play a proportionally larger role for our clients in their
ability to compete. With the acceleration of the Internet and an increasing reliance on the systems and
networks that support e-commerce initiatives, CA is uniquely positioned to benefit as the leading
independent provider of systems and network infrastructure software."
"We are pleased with the 31% revenue increase in our client/server business," said Sanjay Kumar, CA
president and chief operating officer. "We continue to be the only independent software vendor that offers
a comprehensive array of cross-platform integrated products covering all aspects of enterprise
management. Our security, storage management and desktop management solutions have been especially
well received by our clients. Professional services, an area of substantial opportunity for CA, experienced
a revenue increase of 97% to $77 million versus last year. In other areas, CA's international revenue
increased 19% with particular strength from CA's European units. CA's balance sheet continues to be
solid, paced by operating cash flow of $467 million in the December quarter."
In December, CA announced Neugents(TM), its revolutionary neural network technology. Neugents
enable an entirely new generation of business applications that can not only analyze conditions in business
markets and technical environments, but also predict changes in those conditions and suggest courses of
action to proactively capitalize on opportunities and/or avoid potential problems. IndustryWeek magazine
chose Neugents as one of 25 winners of the "Technology of the Year" award for 1998.
Other third quarter highlights:
* CA unveiled Unicenter TNG Framework for OS/390, adding IBM's premier enterprise server operating
systems to more than 40 hardware and software platforms already supported by Unicenter TNG. CA also
announced new software agents that extend Unicenter TNG to encompass OS/390 applications and
subsystems. In addition, CA Global Professional Services (GPS) introduced a wide-ranging OS/390
services program.
* To bolster its 3D technology leadership, CA acquired privately-held Viewpoint DataLabs International,
Inc., the world leader in 3D digital content creation and publishing, and privately-held 3Name3D, a leading
3D design and production firm which is now part of the new ViewPoint subsidiary. CA is using this
revolutionary technology to further advance the capabilities of leading edge products such as
Unicenter TNG and Jasmine.
* CA announced Unicenter TNG and Jasmine support for Sun Microsystems' new Java Development Kit.
CA and Sun also extended their long-standing relationship in conjunction with Sun's introduction of the
Solaris 7 operating environment.
* CA and Hitachi announced the first major software and hardware collaboration to offer customers an
end-to-end storage management solution across the entire enterprise.
* CA extended its leadership in emerging Storage Area Network (SAN) technology by announcing support
for Compaq's StorageWorks Enterprise Backup Solution. CA's newly released ARCserveIT and the
Enterprise Library Option (ELO) will play integral roles in the deployment of Compaq's Enterprise Backup
Solution and enhanced Storage Management Options.
* Underscoring its commitment to increasing revenue through the channel, CA signed strategic distribution
agreements with Tech Data, Ingram Micro and Merisel for CA's Enterprise Edition products. Merisel also
designated Unicenter TNG as a strategic management platform and premier enterprise management
solution.
* Intelligent Enterprise magazine, a leading IT publication, selected Unicenter TNG as the top-performing
IT solution for systems management and Jasmine as the premier object-oriented database solution.
* CA introduced the Linux Edition of Ingres II with an innovative Open Beta program that enables clients
to leverage the popular, free UNIX platform to build core business applications.
* FORTUNE magazine cited CA as one of the "100 Best Companies to Work for in America." The list
was compiled through interviews with more than 20,000 selected employees at scores of companies
nationwide.
* CA acquired LDA Systems, Inc., a leading information management consulting and services firm that
provides enterprise-wide solutions integrating client/server, mainframe, midrange and Internet technologies,
and integrated the company into GPS.
* CA acquired Aventura Systems ASA, a leading provider of e-commerce and electronic data interchange
solutions based in Oslo, Norway. The acquisition provides CA with strong business-to-business electronic
commerce solutions and expertise, and strengthens the presence of GPS throughout Scandinavia, where
Aventura has an established customer base.
* GPS formed a Business Assessment and Consulting Group, giving CA clients access to high-end
business and IT process re-engineering expertise, directly supported by GPS-associated design,
implementation and outsourcing services as well as by CA's broad technology portfolio.
* To further support global customers based in Japan or doing business there, CA announced a large-scale
launch of industry-leading solutions localized for the Japanese corporate IT market, including the Japanese
version of the Unicenter TNG SAP R/3 Option.
* CA and Samsung SDS established a far-reaching strategic alliance to deliver robust, integrated enterprise
management capabilities worldwide. Samsung endorsed and is reselling Unicenter TNG as its preferred
enterprise management solution, and specially-trained Samsung consultants are partnering with CA's GPS
to provide enterprise management services to corporate customers worldwide.
* Other companies which selected Unicenter TNG to manage their computer environments during the
quarter included Hormel Foods, 1-800-FLOWERS, Payless ShoeSource, Polytechnic University, Anthem,
Mekorot, Cellcom, Oakland County, Michigan, West Interactive, Swiss Electronics and Microtechnology
Center, Universita Cattolica del Sacro Cuore, Central Illinois Light Company, Hurley Consulting
Associates, BSN Bank…
* CA and the Habitat for Humanity joined forces to construct affordable homes in West Chicago for
families in need. CA employees volunteered to donate their time and energy to build these homes. They
also pledged monetary contributions to the project, which will be used to purchase building materials. These
donations will be matched 200 percent by CA's Matching Charitable Gifts Program.
* Recognizing that employees choose to build their families in many different ways, CA instituted an
innovative program that reimburses employees up to $5,000 for each child they adopt. Under the program,
employees are reimbursed for expenses directly related to adoption, including certified agency and
placement fees; legal expenses; various medical costs; temporary foster care; and transportation. The
program is open to all full-time CA employees in the United States and is the latest addition to CA's
comprehensive benefits package.
Computer Associates International, Inc. (NYSE: CA), the world leader in mission-critical business
computing, provides software, support and integration services in more than 100 countries around
the world. CA has over 13,000 employees and had revenue of $5.1 billion in calendar year 1998.
For more information about CA, please call 516-342-5224 or email info@cai.com. CA's World Wide
Web address is www.cai.com.
All referenced product names are trademarks of their respective companies.
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 recorded in the last few days of the quarter, making
financial predictions especially difficult and raising a substantial risk of variance in actual results;
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; delays
in product delivery; the ability to recruit and retain qualified personnel; negative implications from
the "Year 2000" or "Euro" implementation technology problem, including customer indecision,
purchasing delays or budget re-allocations; business conditions in the client/server and mainframe
software and hardware markets; use of software patent rights to attempt to limit competition;
assimilation of business or technology acquisitions; fluctuations in foreign currency exchange
rates; the volatility of the international marketplace, including the recent Asian and Latin American
turmoil; and other risks described in filings with the Securities and Exchange Commission.
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They have a gif chart of numbers but I don't know how to include it.
cai.com
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