EXHIBIT 99.4
COMPUTER ASSOCIATES
<PAGE>
Forward-Looking Statements
Contained Herein
Statements in this release concerning the Company's future prospects are
"forward-looking statements" under the Private Securities Litigation Reform Act
of 1995. There can be no assurances that future results will be achieved, and
actual results could differ materially from forecasts and estimates. Important
factors that could cause actual results to differ materially include: the
significant percentage of CA's quarterly sales consummated in the last few days
of the quarter making financial predictions especially difficult and raising a
substantial risk of variance in actual results; changes in industry accounting
guidance; the risks associated with changes in the company's business model; the
risks associated with changes in the way in which the company accounts for
license revenue; the difficulties of compiling pro forma financial information,
given acquisitions over time; instability resulting from changes to the
company's business model; the emergence of new competitive initiatives resulting
from rapid technological advances or changes in pricing in the market; the risks
associated with new product introductions as well as the uncertainty of customer
acceptance of these new or enhanced products from either CA or its competition;
risks associated with the entry into new markets such as professional services;
the risks associated with integrating newly acquired businesses and
technologies; increasing dependency on large dollar licensing transactions;
delays in product delivery; reliance on mainframe capacity growth; the ability
to recruit and retain qualified personnel; business conditions in the
distributed systems and mainframe software and hardware markets; uncertainty and
volatility associated with Internet and eBusiness related activities; use of
software patent rights to attempt to limit competition; fluctuations in foreign
currency exchange rates and interest rates; the volatility of the international
marketplace; and other risks described in filings with the Securities and
Exchange Commission.
<PAGE>
INTRODUCING
A NEW BUSINESS MODEL
<PAGE>
Innovative Approach to Doing Business
* CA's strength is in the diversity and excellence of our software products
* Our new business model empowers clients to take advantage of that diversity
* Enables CA and its shareholders to build residual value that transcends
quarterly performance
* Eliminates the back-end loaded nature of our business
* Unlocks the true value of CA
<PAGE>
How does it work?
* Customers vary their software mix as their business needs change
* Freedom to use a variety of software products during contracted periods
* Flexible customer licensing including payments up-front, month-to-month,
and over a term
* Discounts for longer terms and volume
<PAGE>
Real Client Benefits
* Provides more flexibility in how clients license their software
* Faster, simpler, more cost-effective way to do business with CA
* Map the growth of their technology to the growth of their business
* Take advantage of the latest advances in CA technology
* More predictable costs
<PAGE>
What does it mean for CA?
* The new licensing model helps build better visibility into the company's
revenue stream and residual value.
* CA will recognize income on a monthly basis, rather than on a one-time
basis thereby reducing the uncertainty of quarterly revenues.
* While the new license model changes the way CA recognizes income, it does
not change the company's overall cash flow.
<PAGE>
Reported Revenue - Timing
<TABLE>
<CAPTION>
Year 1 Year 2 Year 3 Total
<S> <C> <C> <C> <C>
Payments 100 100 100 300
Revenue Old 300
Residual Value 0 0 0
Revenue New 100 100 100 300
Residual Value 200 100 0
<FN>
* Excludes impact of maintenance and interest
</FN>
</TABLE>
<PAGE>
Financial Information
All of the financial information set forth is subject to the risks,
uncertainties, and assumptions referred to in the "Forward Looking Statement"
proviso.
<PAGE>
Current Year Impact
<TABLE>
<CAPTION>
FY01 FY01 FY01 FY01 FY01
Q1 Q2 Q3 (A) Q4 (A) Total (A)
----- ----- ------- ------ ---------
<S> <C> <C> <C> <C> <C>
Reported
Product Revenue 1,137 1,527 528 591 3,783
Services Revenue 141 154 135 125 555
Total Revenue 1,278 1,681 663 716 4,338
Contract Value 1,278 1,681
Operating-EPS $0.14 $0.54
Pro-forma
Product Revenue 1,183 1,243 1,280 1,341 5,047
Services Revenue 141 154 135 125 555
Total Revenue 1,324 1,397 1,415 1,466 5,602
Operating-EPS $0.33 $0.39 $0.40 $0.43 $1.55
<FN>
(A) Projected
</FN>
<FN>
Assumptions used to project future results are based on historical data, trends,
and other financial information.
</FN>
</TABLE>
<PAGE>
And Impact On Next Two Years
<TABLE>
<CAPTION>
FY00 FY01 (A) FY02 (A)
-------- --------- ---------
<S> <C> <C> <C>
Reported:
Product Revenue 6,266 3,783 2,755
Services Revenue 500 555 510
----- ----- -----
Total Revenue 6,766 4,338 3,265
Contract Value 6,766
Operating-EPS $3.28
Backlog 3,028 8,222
Pro-Forma:
Product Revenue 4,492 5,049 5,636
12% 12%
Services Revenue 764 554 510
Total Revenue 5,256 5,603 6,146
Operating - EPS $1.31 $1.55 $2.01
18% 30%
<FN>
Assumptions used to project future results are based on historical data, trends,
and other financial information.
</FN>
</TABLE>
<PAGE>
A win-win situation
* Clients with greater satisfaction
* Sales force with greater focus on selling technology and armed with a true
value proposition
* Investors who can focus on technology benefits instead of unpredictability
of revenue streams
<PAGE>
Forward-Looking Statements
Contained Herein
Statements in this release concerning the Company's future prospects are
"forward-looking statements" under the Private Securities Litigation Reform Act
of 1995. There can be no assurances that future results will be achieved, and
actual results could differ materially from forecasts and estimates. Important
factors that could cause actual results to differ materially include: the
significant percentage of CA's quarterly sales consummated in the last few days
of the quarter making financial predictions especially difficult and raising a
substantial risk of variance in actual results; changes in industry accounting
guidance; the risks associated with changes in the company's business model; the
risks associated with changes in the way in which the company accounts for
license revenue; the difficulties of compiling pro forma financial information,
given acquisitions over time; instability resulting from changes to the
company's business model; the emergence of new competitive initiatives resulting
from rapid technological advances or changes in pricing in the market; the risks
associated with new product introductions as well as the uncertainty of customer
acceptance of these new or enhanced products from either CA or its competition;
risks associated with the entry into new markets such as professional services;
the risks associated with integrating newly acquired businesses and
technologies; increasing dependency on large dollar licensing transactions;
delays in product delivery; reliance on mainframe capacity growth; the ability
to recruit and retain qualified personnel; business conditions in the
distributed systems and mainframe software and hardware markets; uncertainty and
volatility associated with Internet and eBusiness related activities; use of
software patent rights to attempt to limit competition; fluctuations in foreign
currency exchange rates and interest rates; the volatility of the international
marketplace; and other risks described in filings with the Securities and
Exchange Commission.
<PAGE>
COMPUTER ASSOCIATES
<PAGE>
