Monday May 15, 4:15 pm Eastern Time
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Company Press Release
SOURCE: Computer Associates International, Inc.
Computer Associates Reports Record Fourth Quarter, Citing Growing Demand For eBusiness Solutions
Fourth Quarter Operating Earnings Jump 26% to $1.13
ISLANDIA, N.Y., May 15 /PRNewswire/ -- Fueled by strong demand for its eBusiness infrastructure solutions, Computer Associates International, Inc. (NYSE: CA - news) today reported record results for its fourth quarter and fiscal year.
For the quarter ended March 31, 2000, revenue was $2.13 billion, an increase of 31% over the $1.63 billion reported in the previous year's fourth quarter. Adjusted for the approximate $33 million negative foreign currency effect, revenue for the quarter would have increased 33% to $2.16 billion. Distributed Systems revenue increased 34% to $1.07 billion as compared to the $802 million recorded in the prior year. Professional Services revenue increased 24% year-over-year to $115 million. EBITDA increased 34% to $1.14 billion from $849 million last year. Net income for the March 31, 2000 quarter, excluding a $150 million charge related to the acquisition of Sterling Software and a $15 million non-cash special charge, was $551 million, versus the prior year's $458 million. Operating earnings per share (diluted) increased 26% to $1.13 from last year's $.90, excluding the Sterling acquisition charge, other acquisition amortization charges and the one time non-cash charge.
CA's full fiscal year ending financials contain additional detail with respect to the components that constitute revenues and costs. These new items include licenses, maintenance fees, professional services fees, financing fees, and costs associated with expanded contracts. These changes, which are reflected in Table 2 below, have no impact on CA's earnings.
For the full fiscal year that ended March 31, 2000, total contract value was $6.77 billion, an increase of 29% over the $5.25 billion reported in fiscal year 1999. Adjusted for the approximate $107 million negative foreign currency effect, total contract value for the year would have increased 31% to $6.87 billion. Licenses increased 27%, Maintenance Fees increased 18%, Professional Services increased 74% and Financing Fees increased 30% versus last year. EBITDA increased 33% to $3.37 billion from $2.53 billion last year. Net income for the year ended March 31, 2000, excluding the $150 million Sterling Software charge, the $646 million charge related to the June 1999 acquisition of PLATINUM technology International, inc. and other special charges was $1.52 billion, versus $1.30 billion last year. Operating earnings per share (diluted) increased 27% to $3.28 from last year's $2.59, excluding special charges and acquisition related amortization costs.
``We're excited about the results for the year and are optimistic about the future,'' said CA Chairman and CEO Charles B. Wang. ``The Internet continues to drive growth at CA. The more our clients use the Internet, the more they rely on CA software and services to get the job done. Our capabilities in delivering the best Internet infrastructure solutions continue to create new opportunities for our Unicenter, Jasmineii, and Neugents solutions. These new opportunities are moving us into our clients' business units, not just the data center, where business managers are looking for ways to quickly leverage the power of the Internet.''
``We're particularly pleased with our business performance in the fourth quarter,'' said CA President and COO Sanjay Kumar. ``Our North American and Asian units performed particularly well, and for the first time, our distributed computing revenue topped $1 billion in a quarter.''
``As we kick off fiscal 2001, we are underway with the integration of the Sterling Software acquisition,'' said Kumar. ``To support this integration-which is also part of this movement into our clients' business units-we've restructured our product sales and services sales staffs under one unified management structure. In addition, our new combined sales organization has been organized to provide better business focus across all of CA's products. We're now uniquely capable of supporting both infrastructure management and eBusiness implementations. This two-fold capability enables our clients to leverage their investments in CA solutions to exploit global eBusiness initiatives.''
Computer Associates recently completed its acquisition of Sterling Software, Inc., and delivered road maps for the Sterling products. The road maps outline how CA plans to extend its global leadership in the delivery of software and services to enable faster, better, safer and more reliable eBusiness computing.
At CA-World 2000 in New Orleans, CA announced full-scale delivery of Jasmineii, the world's first intelligent and integrated platform for eBusiness. Leveraging CA's patented Neugents technology, Jasmineii dramatically speeds time-to-market of Business-to-Business, Business-to- Commerce, Application Service Provider (ASP) and trading exchange applications.
Also at CA-World, CA and Nissho Iwai Corporation (NIC) announced the formation of a joint venture to create the first worldwide cross industry B2B trading exchange. The joint venture company, Cynomix Corporation, will enable buyers and sellers in any industry around the world to transact business via the Internet.
CA and its partners also demonstrated new solutions for mobile eBusiness platforms, based on Unicenter TNG, that extend the reach of technology management beyond traditional IT technologies to provide increased efficiency, reduced costs and new revenue opportunities for clients.
Highlights from the fourth-quarter included:
* CA shipped the beta release of Unicenter TND, enabling clients to
harness the dimension of time to optimize availability of their
eBusiness environments.
* CA delivered the first standards-based serverless backup for Storage
Area Networks (SAN), eliminating the impact of high performance backup
and restore, reducing server downtime and increasing application
availability. CA also established a new performance benchmark for SAN
backup, underscoring the importance of protecting large volumes of data
within today's eBusiness environments.
* CA announced that Dell Computer Corporation chose ARCserveIT as part of
its complete data protection, management and availability solution.
* interBiz, CA's eBusiness applications division, announced the general
availability of BizWorks, an eBusiness Intelligence suite that supports
enterprise-wide business integration, bridging existing business
applications and the Internet.
* CA and Center 7 announced a strategic alliance that allows Center 7, an
ASP, to deliver Unicenter TNG solutions and customized eBusiness
solutions to its worldwide clients.
* CA and Cable & Wireless HKT announced a joint venture intended to
accelerate ASP development in the Asia-Pacific region, Hong Kong's first
ASP that delivers integrated eBusiness solutions via broadband network
access.
* CA and Korea Telecom Hitel, a leading Internet Service provider in South
Korea, announced a joint venture to host and deliver applications over
the Internet.
* CA and Beijing Anyi, the largest state-owned accounting and enterprise
resource planning company in China, announced a joint venture to provide
complete eBusiness solutions to enterprise management clients in China.
* CA and Taiwan Sogo Shin Kong Security Co., Ltd. announced a joint
venture to provide complete enterprise security solutions for
eBusinesses in Taiwan.
* CA, Institute for Information Industry, and Union Group, Taiwan,
announced the formation of eBizServe, a joint venture to provide the
groundwork in Taiwan for a B2B trading infrastructure and an eBusiness
trading Web site.
* CA and I-Storm, Inc. announced a strategic alliance to finance, build
and operate world-class eCommerce storefronts with the critical back-end
systems required by today's major corporations and retailers.
* CA announced the acquisitions of Applied Management Systems Inc., a
privately held firm specializing in eBusiness services and solutions to
the federal government, and MultiGen-Paradigm, Inc., the world's leading
supplier of 3-D visualization simulation technology.
* Providing protection against Distributed Denial of Service attacks that
crippled some of the largest and most popular Web sites, CA announced
updates to its award-winning eTrust Intrusion Detection and eTrust
AntiVirus solutions.
* CA convened an Internet Security Task Force, which announced specific
technical, organizational and operational guidelines on Internet
security aimed at preventing large-scale cyber terror attacks.
* CA and Red Hat, Inc. announced a far-reaching agreement in which Red Hat
will distribute CA's comprehensive enterprise management solutions with
the Red Hat Enterprise Edition series, delivering a seamless out-of-the-
box management solution tightly packaged for the mid-market customer.
* CA announced the general availability of Ingres II for Linux, bringing
state-of-the-art database performance to the Linux community. CA also
introduced a Linux-version of its eTrust Access Control security
solution.
* CA announced the availability of Linux Premium Services, a collection of
specialized service offerings to help enterprise users deploy and grow
their Linux-based environments.
* CA and Advanced Micro Devices, Inc. (AMD) announced CA's Unicenter TNG
Desktop Edition, a comprehensive solution for managing desktop computers
that delivers unparalleled manageability and functionality to end users.
* CA extended its eBusiness solutions to Windows 2000, bringing a new
generation of intelligence and predictive capabilities to eBusiness
applications built on the Microsoft platform.
* Fortune magazine named CA one of America's "most admired companies."
CA, the second highest ranked software company, was rated number one in
social responsibility.
* Information Week named Unicenter one of the 10 "Most Important Products
of the '90s," the only enterprise management solution to be selected.
* PC Computing magazine named eTrust Intrusion Detection as the Most
Valuable Product for 1999.
* Java Developer's Journal named CA's Jasmineii the "Most innovative Java
Product of the Year.
* CA and local agencies and law enforcement associations launched Missing
Children's Web sites in the United Kingdom and Italy, the latest in a
series of international Web sites designed and hosted by CA to reunite
missing children with their families.
* CA opened its new state-of-the-art European headquarters in the United
Kingdom, a technologically-advanced workplace environment that is a
center for research and development, sales and customer support
throughout Europe.
Computer Associates International, Inc. (NYSE: CA - news), the world's leading business software company, delivers the end-to-end infrastructure to enable eBusiness through innovative technology, services and education. CA has 20,000 employees worldwide and had revenue over $6 billion for the fiscal year ended March 31, 2000. For more information, visit www.ca.com.
All trademarks, trade names, service marks and logos referenced herein belong to 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 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.
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