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TECHNOLOGY BRIEFS

Software Maker to Beat Estimates

April 17, 2001|Reuters

Computer Associates International Inc. said its fiscal fourth-quarter results would beat the consensus expectations, crediting in part a newly adopted business model that changes the way it books revenue and gives customers more flexibility in choosing products. The software maker said it expects operating earnings of 47 cents, compared with the 43-cent average estimate of analysts polled by First Call/Thomson Financial. Revenue is expected to grow 3.6% to about $1.44 billion, topping analysts' consensus of $1.42 billion. "I think our business just rocked everywhere around the world," said Chief Executive Sanjay Kumar, adding that business in Europe, which had suffered for several quarters, was strong. Kumar said the company was off to a good start in its fiscal first quarter, but cautioned analysts not to raise their estimates for the future because of the tough economic climate. The company expects product revenue to grow about 11% to $1.34 billion in the fourth quarter, but it said professional services revenue may drop 44% to $102 million. For the fiscal year, Computer Associates sees earnings of $1.61 a share, better than the $1.57 average forecast of analysts. It expects full-year revenue to grow 6% to about $5.57 billion. Computer Associates shares closed off 23 cents at $29.59 on the New York Stock Exchange before the news. In after-hours activity on the Instinet brokerage system, Computer Associates shares were inactive, not unusual for stocks listed on the Big Board.

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