Computer Associates’ tops Q1 estimates

New York: Computer Associates International Inc. on Monday said its fiscal

first-quarter earnings surpassed its own previously raised expectations.

For the quarter ending June 30, Computer Associates - whose software runs on

and manages mainframe and networked computers - said that excluding charges, it

earned $323 million, or 55 cents a share compared with pro forma earnings of

$201 million, or 33 cents a share in the year-ago quarter.

This was the first quarterly report from the world's No. 4 software maker

since Texas billionaire Sam Wyly launched his fight for control of the company.

Analysts had generally expected income of 48 cents a share, with estimates

ranging from 46 cents a share to 48 cents a share, according to 13 analysts

polled by Thomson Financial/First Call.

On a pro forma basis, revenue rose to $1.44 billion from $1.32 billion a year

ago.

Outlook raised



Meanwhile, Computer Associates raised its outlook for the current fiscal
quarter and full year, but told analysts not to change their estimates for the

year's second half because of an unclear US and European economic outlook

For the fiscal second quarter ending Sept. 30, the firm raised its earnings

outlook by 4 cents a share. Analysts had had expected Computer Associates to

earn 49 cents in the fiscal second quarter, to Thomson Financial First Call.

Pro forma revenue from its services sector is expected to be flat, compared

with the fiscal first quarter. The company expects total pro forma revenue to be

about $1.45 billion. Using the Generally Accepted Accounting Practices, the

company said it expected second-quarter revenues to be about $720 million.

For fiscal year 2002 ending March 31, Computer Associates said it expected a

pro forma per share profit of $2.12, up from the $2.00 a share, analysts had

expected and from the $2.01, the company previously anticipated.

Pro forma figures are based on the company's new accounting method, under

which revenue is spread over the lifetime of the contract instead of booked in

its entirely when the contract is signed. The remainder of the revenue under the

contract is accounted for as residual revenue. Using the Generally Accepted

Accounting Practices, the company said it expected second-quarter revenues to be

about $720 million.

(C) Reuters Limited 2001.