Computer Associates announces yet another record quarter; second quarter revenue up 30%.

Associates International, Inc. (NYSE Symbol: CA) today announced record results for its second fiscal quarter.

For the quarter ended September 30, 1995, revenue was $812,316,000, an increase of 30% over the $623,340,000 reported in the previous year's second quarter. Net income for the quarter, exclusive of the previously announced charge associated with the recently completed acquisition of Legent Corporation, was $170,854,000, an increase of 31% over last year's $130,375,000. Income per share before the charge was $.68 compared to $.52 a year ago, both amounts adjusted for the August 1995 three-for-two stock split. Inclusive of the $808,034,000 after-tax charge associated with the write-off of purchased R&D, the net loss for the quarter was $637,180,000 or $2.64 per share.

For the six months ended September 30, 1995, revenue was $1,389,768,000, an increase of 26% over the $1,099,971,000 reported in the previous year. Net income and income per share were $259,403,000 and $1.03, an increase of 30% over the $199,362,000 and $.79 for the first half of the prior year, exclusive of the Legent charge and a similar charge last year associated with the June 1994 acquisition of The ASK Group, Inc. After the charges, the net loss and loss per share were $548,631,000 and $2.28 compared with net income of $44,796,000 and income per share of $.18 from the corresponding period last year.

"CA's continued success, especially in light of recent disappointments in the high-technology sector, clearly demonstrates that CA is not merely transitioning into higher growth client/server markets, but rather, offers what clients need - reliable and well integrated systems, database and business application software, available across all popular computing platforms and operating systems to allow our clients the flexibility and dependability required to run their businesses. No other independent software company can provide such a broad range of mission critical solutions," said Charles B. Wang, Chairman and Chief Executive Officer of Computer Associates.

Added Sanjay Kumar, CA's President and Chief Operating Officer, "We are pleased with yet another record setting quarter, but remain focused on the opportunities ahead. Despite the addition of Legent's mostly mainframe offerings, CA's midrange revenues for the quarter grew 66% from 18 to 24 percent of total revenue. To date, our assimilation of the Legent operation is progressing amazingly well. With the integration of key Legent client-server technology and the refinement of our product offerings, we stand uniquely positioned to fulfill the promises of increased productivity through technology for our clients."

Computer Associates International, Inc. (NYSE : CA), with headquarters in Islandia, N.Y., is the world leader in mission-critical business software. The company develops, licenses and supports more than 500 integrated products that include systems and database management, application development, manufacturing and financial applications. CA has 9,000 people in 130 offices in 36 countries and had revenue of $2.6 billion in its 1995 fiscal year. CA can be reached by visiting its homepage on the worldwide web (http://www.cai.com). -0- All referenced product names are trademarks of their respective companies.

COMPUTER ASSOCIATES INTERNATIONAL, INC.

Earnings Before Charges

(table in thousands, except per share data)

Three Months Six Months

Ended September 30, Ended September 30,

1995 (A) 1994 1995 (A) 1994 (B)

Revenue $812,316 $623,340 $1,389,768 $1,099,971 Income before taxes 273,367 210,282 413,921 321,551 Net Income 170,854 130,375 259,403 199,362 Net Income per

Common Share (C) $.68 $.52 $1.03 $.79 Shares used in computation (C) 253,015 252,297 252,848 252,096

(A) Excludes the write-off of $1,303,280,000 (pre-tax) for purchased

research and development associated with the acquisition of

Legent Corporation. With this charge, loss before taxes for the

quarter would be $1,029,913,000, net loss would be $637,180,000,

and net loss per share would be $2.64. For the six months,

loss before taxes would be $889,359,000, net loss would

be $548,631,000, and net loss per share would have been $2.28

(see table below).

(B) Excludes write-off of $249,300,000 (pre-tax) for purchased

research and development associated with the acquisition of

The ASK Group, Inc. With this charge, income before taxes would

be $72,251,000, net income would be $44,796,000, and net income

per share would have been $.18 (see table below).

(C) Earnings per share and common share amounts have been adjusted to

reflect the three-for-two stock split effective August 21, 1995.

Condensed Consolidated Income Statement 

(table in thousands, except per share data)

Three Months Six Months

Ended September 30, Ended September 30,

1995 1994 1995 1994

Revenue $812,316 $623,340 $1,389,768 $1,099,971 Income(Loss) before taxes (1,029,913) 210,282 (889,359) 72,251 Net Income(Loss) (637,180) 130,375 (548,631) 44,796 Net Income(Loss) per

Common Share (C) $(2.64) $.52 $(2.28) $.18 Shares used in

computation (C) 241,379 252,297 241,072 252,096

CONTACT: Doug Robinson - Investor Relations 

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Bob Gordon - Public Relations 

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