Contacts:
Doug Robinson - Investor Relations Bob Gordon - Public Relations
(631) 342-2745 (631) 342-2391
[email protected] [email protected]
COMPUTER ASSOCIATES ANNOUNCES PRELIMINARY FIRST QUARTER RESULTS
ISLANDIA, N.Y., July 3, 2000 - Computer Associates International, Inc.
(NYSE: CA) today reported that it expects financial results for the first
quarter ending June 30, 2000 to be less than current Wall Street estimates. CA
expects total contract value to be in the range of $1.25 billion to $1.3
billion. This compares to the $1.22 billion recorded in the first quarter of
last year.
The quarter was affected by weak European sales and softness in its
mainframe business. CA cited the fact that several large contracts that were
expected to close in the final days of the quarter have been delayed.
Commenting on today's announcement, Sanjay Kumar, CA's president and chief
operating officer stated, "Revenue wasn't as strong in the quarter as we had
hoped. We intend to work aggressively to address the performance issues in our
European business. With the recently completed Sterling Software acquisition and
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a refocused sales and service organization, we feel very well positioned to
capitalize on further opportunities in the eBusiness marketplace."
CA is scheduling a conference call with securities analysts for Wednesday
morning July 5, 2000 at 8:30am EDT to discuss this announcement and is scheduled
to report final results the evening of July 20, 2000.
Computer Associates International, Inc. (NYSE: CA), the world's leading
business software company, delivers the end-to-end infrastructure to enable
eBusiness through innovative technology, services and education. For more
information, visit www.ca.com.
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 of potential litigation arising from the year 2000 date
change for computer programs; 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 client/server 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.
