Computer Associates Revises Fiscal Year Forecast, Blames Typo
TSC Staff
05/07/01 - 09:26 AM EDT
Timing is everything.
Computer Associates (CA), which recently has been forced to defend its accounting practices, said a typographical error in an earnings forecast for the year ended March 31 caused the company to overstate the expected bottom line for the period. The disclosure probably won't win Computer Associates any friends among its detractors.
On April 16, the company issued a press release indicating that it would earn 40 cents a share for the fiscal year. In fact, the company expects to earn 16 cents. Computer Associates said the mistake won't affect its pro forma projected earnings of 47 cents a share for the fiscal fourth quarter and $1.61 a share for the year.
Last month, Computer Associates went into damage control mode after a published article questioned the company's accounting methods. Investors weren't impressed by a
defense from the company's CEO as they sent shares of the business software provider sharply lower.
The company plans to release audited financial results on May 22.
