CA second quarter earnings beat expectations

Computer Associates (CA) has announced that net income for its second fiscal quarter, ending Sept. 30, was US$271.8 million, an increase of 22% over the $223.4 million generated in same period last year. Second quarter income per share was 72 cents compared to 59 cents a year ago, the company reported. The results, a record for the company, handily beat earnings expectations, according to a broker survey by First Call Inc. The average earnings estimate of the 18 brokers polled was 69 cents, for forecasts ranging from 65 cents to 70 cents.

Computer Associates (CA) has announced that net income for its second fiscal quarter, ending Sept. 30, was US$271.8 million, an increase of 22% over the $223.4 million generated in same period last year.

Second quarter income per share was 72 cents compared to 59 cents a year ago, the company reported.

The results, a record for the company, handily beat earnings expectations, according to a broker survey by First Call Inc. The average earnings estimate of the 18 brokers polled was 69 cents, for forecasts ranging from 65 cents to 70 cents.

Total revenue for the quarter was $1.1 billion, an increase of 13% over the $990.1 billion reported in the previous year, despite a negative foreign exchange impact of approximately $30 million, CA said.

For the first six months of the fiscal year, revenue was $2 billion, an increase of 13% over the $1.7 billion reported in the first half of last year. Net income and income per share were $427.6 million and $1.14, a year-over-year increase of 25% and 27%, respectively, over the $343.1 million and 90 cents per share for the prior-year period.

Unicenter TNG, the company's flagship network management product, contributed significantly to the financial results, according to Charles Wang, CA's chairman and chief executive officer, in a statement released with the results.

The release in July of TNG Framework, which offers a basic management platform on which customers can build specific management applications, has attracted new customers, said officials.

In a separate announcement today, CA reported that its board of directors has declared a three-for-two stock split, effective next month. The earnings per share figures in today's announcement do not reflect the effect of this stock split, CA said.

CA can be reached at http://www.cai.com/.

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