Computer Associates International topped its earlier guidance and posted a slight operating profit in its just-ended quarter, a result CEO Sanjay Kumar attributed to deferred revenue generated through subscription software sales.
CA reported an operating profit of $US0.02 per share, beating the break-even consensus forecast of analysts polled by Thomson Financial/First Call. Revenue for the quarter was $765 million as calculated under generally accepted accounting principles (GAAP), up 7 per cent from the year-ago quarter, while CA's net loss totalled $65 million, compared to its year-ago $342 million net loss.
Weak customer spending affected CA's services business, Kumar said in a prepared statement accompanying the company's financial release. CA's services revenue has been dwindling for several quarters, and dropped this quarter to $65 million, down from $85 million in the year-ago quarter.
CA lowered its revenue forecast for its 2003 fiscal year, which ends on March 31, 2003. An economic recovery is taking longer than anticipated, the company said. CA now anticipates revenue of $3.1 billion to $3.2 billion, down from its earlier forecast of revenue between $3.2 billion and $3.26 billion.