CA seems happy with things...
CA Says New Business Model Rules; Q4 Rocks
Preliminary License Revenue and Operating EPS Beat Both Company and Consensus Estimates
Company To Hold Webcast at 5PM EDT Today
ISLANDIA, N.Y., April 16 /PRNewswire/ -- Computer Associates International, Inc. (NYSE: CA - news) today announced preliminary financial results for its fourth fiscal quarter with revenue and earnings per share above analyst and company estimates. The results reflect the success of the company's eBusiness strategy and customer-centric Business Model.
On a pro forma pro rata basis for the quarter ended March 31, 2001, Product revenue is estimated to be approximately $1.338 billion, as compared with $1.209 billion for the prior year's fourth quarter. Professional Services revenue is estimated to be approximately $102 million as compared with $181 million for the quarter ended March 21, 2000. Total revenue is estimated to be approximately $1.440 billion increasing from $1.390 billion in the prior year's fourth quarter. Fourth quarter operating earnings per share (diluted), exclusive of acquisition amortization effect and special charges, are anticipated to be approximately $.47 as compared with $.34 in the prior year's fourth quarter. The consensus analyst estimates were $1.425 billion for revenue and $.43 for operating earnings per share. CA also anticipates that approximately $1.3 billion of Residual Value was concluded in the quarter.
Residual Value reflects the value of contractual commitments not reported as revenue in the current quarter. Such Residual Value will be amortized into revenue in future periods. For more information on Residual Value and CA's new Business Model, please visit www3.ca.com
For the fiscal year ended March 31, 2001, on a pro forma pro rata basis, the company expects to report Product revenues of approximately $5.048 billion as compared with $4.492 billion for the year ended March 31, 2000. Full year Professional Services revenue is expected to be approximately $517 million as compared to $764 million for the prior year. Total revenue for the full year is expected to be approximately $5.565 billion as compared to $5.256 billion in fiscal 2000. Operating earnings per share (diluted), exclusive of acquisition amortization effect and special charges, are anticipated to be approximately $1.61 compared to $1.31 for the prior year.
``The IT marketplace is embracing CA's innovation and industry leadership,'' said CA President and CEO Sanjay Kumar. ``We are extremely pleased with our revenue and operating EPS performance in Q4, despite difficult economic conditions. In addition to the preliminary results that we're reporting today, we expect to report a strong balance sheet on May 22, when we announce complete results.''
``We continue to deliver the cutting-edge products and services our customers need to better manage their infrastructure and resources to extract greater value from existing hardware and infrastructure investments,'' said Kumar. ``Our new Business Model, which continues to be embraced by customers, has become an even greater competitive advantage for CA.''
``Our focus on six key areas --enterprise management, security, storage, eBusiness transformation and visualization, portal and knowledge management, and predictive and visualization --is defining the core strength of CA,'' stated Kumar. ``People are focusing on CA and our leadership position in our respective markets.''
To support its branding efforts, CA also announced that its newest television commercial will appear in 165 countries beginning today. It can be viewed in its entirety at ca.com.
``We're off to a great start in fiscal 2002,'' said Kumar, `` and we are optimistic that customers will continue to rely upon CA for cutting-edge technology and services.''
CA's reported results are available in the attached table of this news release. These results reflect operations in part under CA's new Business Model and historical Business Model, and, therefore, make the current quarter results not comparable to historical results. For this reason, CA is providing its financial results on a pro forma, pro rata basis.
These results are preliminary in nature, pending completion of the Company's regular year-end audit by KPMG LLP, including independent attestation of pro forma, pro rata results of operations. For additional information on a previously issued attestation, please reference the company's Form 8-K, dated December. 21, 2000, at sec.gov . Actual audited results, which are scheduled for release on or before May 22, 2001, may vary.
The company is hosting a Webcast at 5PM Eastern Daylight Time today to discuss the preliminary results. Interested parties may access the Webcast via the Internet at ca.com A replay of the Webcast will be available one hour after it ends and may be accessed at the same web address.
About Computer Associates
Computer Associates International, Inc. (NYSE: CA - news) delivers The Software That Manages eBusiness. CA's world-class solutions address all aspects of eBusiness process management, information management, and infrastructure management in six focus areas: enterprise management, security, storage, eBusiness transformation and integration, portal and knowledge management, and predictive analysis and visualization. Founded in 1976, CA serves organizations in more than 100 countries, including 99 percent of the Fortune 500 companies. For more information, please visit ca.com.
Statements herein concerning Computer Associates' 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 risks associated with changes in the company's business model; the risks associated with changes in the way in which the company accounts for license revenue; the difficulties of compiling pro forma financial information, given acquisitions over time; instability resulting from changes to the company's business model; 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 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; 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 distributed systems 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; uncertainties relative to global economic conditions; and other risks described in filings with the Securities and Exchange Commission.
Computer Associates International, Inc. One Computer Associates Plaza, Islandia, N.Y. 11749. All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.
COMPUTER ASSOCIATES INTERNATIONAL, INC.
Pro Forma Pro Rata(A) Operating Earnings
(excl. acq. Amortization and Special Items)
(In millions, except per share data)
(Unaudited)
Three Months Twelve Months
Ended March 31 Ended March 31
2001 2000 2001 2000
Total Revenue $1,440 $1,390 $5,565 $5,256
Diluted Operating EPS $0.47 $0.34 $1.61 $1.31
(A) Includes combined results of operations of CA, Platinum Technology International, Inc. and Sterling Software, Inc.
COMPUTER ASSOCIATES INTERNATIONAL, INC.
Reported Operating Results
(excl. acq. Amortization and Special Items)
(In millions, except per share data)
(Unaudited)
Three Months Twelve Months
Ended March 31 Ended March 31
2001 2000 2001 2000
Total Revenue $732 $1,907 $4,197 $6,103
Diluted Operating EPS $(0.29) $1.13 $0.40 $3.28
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