Computer Associates International, Inc. earnings expected to beat estimates; client/server revenues surge 46%.ISLANDIA, N.Y.--(BUSINESS WIRE)--April 23, 1997--Computer Associates International, Inc. (NYSE NYSE See: New York Stock Exchange : CA) today announced that it expects earnings per share for the fourth fiscal quarter that ended March 31, 1997 to be $ .90 per share, an increase of 28% and approximately $ .04 higher than consensus earnings expectations. CA also stated that it expects revenues for the quarter to be $1.2 billion. These results are preliminary in nature, pending completion of the company's regular year end audit. For its fiscal year ending March 31, 1997, CA expects that revenues will be slightly over $4 billion, an increase of approximately 15% over the $3.5 billion reported for the previous fiscal year. Net income for the year is expected to grow 28% to $2.54 per share. These fiscal year results exclude the effect of the $598 million (after tax) R&D charge, taken in the third fiscal quarter, in conjunction with CA's acquisition of Cheyenne Software, Inc. Commenting on today's announcement, Sanjay Kumar For the Indian soldier, see . Sanjay Kumar (born Colombo, Sri Lanka, 1962) was the Chairman & CEO of Computer Associates International (now CA, Inc.), until April 2004. He emigrated with his family to the US in 1976 to escape civil unrest in his native Sri Lanka. , CA's President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , stated "All of us at CA are extremely happy with our fourth quarter performance. Our client server line of products, led by Unicenter TNG TNG Training TNG The Next Generation TNG Tongue TNG The Newspaper Guild (Union) TNG Transitional National Government TNG Telescopio Nazionale Galileo (national facility of the Italian astronomical community) , yielded $440 million in revenue for the quarter. This represents a 46% increase over the comparable period last year. We are further encouraged by the fact that Unicenter TNG did not suffer a single major competitive loss in head-to-head competition in the quarter, clear evidence that CA continues to be the undisputed leader in end-to-end Enterprise Management software. Unicenter TNG has become the de facto [Latin, In fact.] In fact, in deed, actually. This phrase is used to characterize an officer, a government, a past action, or a state of affairs that must be accepted for all practical purposes, but is illegal or illegitimate. industry standard on which businesses can manage their complex computing environments with the utmost in efficiency, stability and security." Commenting on CA's international business, Mr. Kumar added, "We are encouraged by the progress we made in the quarter toward getting our European business refocused and better prepared to respond to our clients' needs. Our European units are now able to more effectively offer complete heterogeneous management solutions in environments ranging from traditional mainframe to client/server. Revenue production internationally was consistent with our expectations, but we remain focused on improving their performance. These encouraging results were achieved despite nearly $35 million negative revenue impact due to the strengthening of the US dollar." The financial results projected herein are preliminary in nature, pending CA's regular fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. audit, and reflect all prior stock splits. CA expects to report final audited financial results for the quarter and year ending March 31, 1997 at the end of May 1997. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Statements in this release concerning the company's future prospects are "forward-looking statements" under the federal securities laws. 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; the risks associated with new product introductions and the uncertainty of customer acceptance of these new or enhanced products from either CA or its competition; business conditions in the client/server and mainframe markets; possible disruptions resulting from organizational changes; fluctuations in foreign currency exchange rates; the volatility of the European marketplace and other risks described in filings with the Securities and Exchange Commission. Computer Associates International, Inc. (NYSE: CA), with headquarters in Islandia, N.Y., is the world's leading provider of mission-critical business software. The company develops, licenses and supports more than 500 integrated products that include enterprise computing Refers to information technology in the larger company. See enterprise data and enterprise networking. and information management, application development, manufacturing and financial applications. CA has over 9,000 people in 160 offices in 40 countries and had revenue of $3.9 billion in calendar year 1996. CA can be reached by visiting http://www.cai.com on the World Wide Web, emailing info@cai.com or calling 1-516-342-5224. CONTACT: Yvette Gutierrez (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) (516) 342-4078 or gutyv01@cai.com Bob Gordon Bob Gordon may refer to:
(516) 342-2391 or bobg@cai.com |
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