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Technology Stocks : Computer Associates -- Ignore unavailable to you. Want to Upgrade?

To: Doughboy who wrote (3003)	10/21/1998 4:54:00 PM
From: BostonView	Read Replies (2) \| Respond to of 5232

CC Summary Having just listened to the call today's rise is no surprise. CA performed very well last Q in the face of very few large deals and an unwillingness to do low margin deals. In fact, their new account business was surprisingly robust in the low and mid size account segments. Sanjay focsed repeatedly on this point...new business, new business, new business (vs. living off the fat of large installed clients and/or the one or two big fish that get hooked every Q). Headcount is up 1,500 Q over Q and stands at 12,000 now. Services got the lions share. This will lead to more effective Unicenter installs and a future surge in services revenue. Margins remain very healthy. This is especially refreshing given the current economic "situation". CA refuses to mortgage the future by giving away the store now. They walked away from a lot of deals that will likely come back in the future (at higher prices/margins). Unicenter is KICKING BUTT. This is now a Client/server software company with less than half rev coming from the mainframe. Unbelievable in just FOUR years! The Seimans deal gives CA a lock (my word) on Germany and a bigger footprint across Europe. On the warning: CA saw the train coming and rather than lie or ignore it decided to be up front, warn Wall Street, make the necessary internal and business adjustments, and then execute (again, without stealing biz from future Q's at lower margins). Mission accomplished. Sanjay "Feels very good" about the health of the business and the pipeline for Q3 and Q4. This was an upbeat call, no two ways about it. Those are a few general impressions. If anyone wants, the Conf. call number is 1-888-243-0816, pw: 1065634 BV