Contacts:
Yvette Gutierrez - Investor Relations Bob Gordon - Public Relations
(631) 342-4078 (631) 342-2391
[email protected] [email protected]
Lisa Savino - Investor Relations
(631) 342-2788
[email protected]
COMPUTER ASSOCIATES PLEASED WITH PRELIMINARY SECOND QUARTER RESULTS
ISLANDIA, N.Y., October 3, 2000 - Computer Associates International, Inc.
(NYSE: CA) today reported preliminary results indicating that it expects total
contract value for the second quarter ending September 30, 2000 to be between
$1.67 billion and $1.70 billion, exceeding the $1.605 billion recorded in the
second quarter of last year, and the $1.278 billion recorded last quarter. Total
contract value, excluding the negative impact of foreign currency, is expected
to be in the range of $1.705 to $1.735. CA expects operating earnings per share,
which excludes the effect of acquisition amortization, to be in the range of
$.50 to $.54. Analysts' expectations varied widely due to market uncertainty
with respect to the enterprise software marketplace.
"We are very pleased with our performance given the current business
environment," said Sanjay Kumar, CA's President and Chief Executive Officer. "As
preliminary results would indicate, the entire CA team pulled together to
deliver approximately $400 million of sequential growth in contract value
quarter over quarter. Our software products and services continue to deliver
tremendous value to customers around the globe, as more and more enterprises
turn to CA to support their mission critical eBusiness requirements. While we
are pleased with the progress that we have made against our recovery plan, we
intend to stay focused on the challenges and opportunities that are ahead."
CA emphasized that results are preliminary in nature and could vary when CA
reports final results on the evening of October 24, 2000.
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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. CA has 20,000
employees worldwide and had revenue in excess of $6 billion for the fiscal year
ended March 31, 2000. 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 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.
