CA Hits Targets, Delays 10-K

Investors have gotten used to bad news from CA; in after-hours trading on Instinet, shares were off a modest 54 cents, or 2.6%, to $20.23.

The business-software company reported a loss of $36 million, or 6 cents a share, from continuing operations compared with the year-ago profit of $16 million, or 3 cents a share, on the same basis. Revenue was up 3% to $947 million.

On a non-GAAP basis, the company earned the expected 14-cent-a-share profit.

The company said it will no longer give quarterly guidance. For the next fiscal year, it now expects to post a non-GAAP profit of 83 cents a share on sales of $3.9 billion in fiscal 2007. Analysts polled by Thomson First Call were looking for a profit of $1.05 a share on sales of $4.05 billion. On a GAAP basis, the company said it expects to earn 44 cents a share, but Swainson said on a conference call that the GAAP number could be lower.

Thursday's filing delay was just one in a string of similar announcements. Citing accounting problems related to commission expenses and other matters, CA in April, and then again in late May, delayed the 10-K and reduced top- and bottom-line guidance. It also delayed the release of fourth-quarter and full-year financial results.

CA, which used to be called Computer Associates, is still struggling to shake off the shadow of the $2 billion accounting scandal that brought down former CEO Sanjay Kumar and other top executives, several of whom have pleaded guilty to charges of fraud and related felonies.

Separately, CA also announced that its board of directors has authorized a new stock-repurchase plan that enables the company to buy $2 billion of its common stock in its current fiscal year ending March 31, 2007.

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