Updated from 7:03 p.m. ET Friday

Software giant

Computer Associates

(CA) - Get Report

was under the microscope Monday following a

New York Times

article Sunday that claimed the company has used creative accounting tricks to overstate its results. The story cites more than a dozen former employees and industry analysts.

Analysts and employees say that big acquisitions were the key to the accounting tricks, but that the company has basically exhausted its takeover possibilities after two decades of buying its competitors.

The article also said that Computer Associates' sales have fallen about two-thirds over the last six months, according to standard accounting principles, but the company has disguised those results by reporting the figures in a way that is difficult to understand.

Long Island-based Computer Associates, which is headed by chairman and founder Charles Wang, scheduled a press conference for Monday morning to address the issues raised in the article.

Earnings/revenue reports and previews

Telecommunications-software maker

Comverse Technology

(CMVT)

said it expects first-quarter results to beat or meet its guidance thanks to a wave of new orders. Comverse said it expects earnings of 42 cents a share, in line with the 19-analyst consensus estimate, according to earnings tracker

Thomson Financial/First Call

. The company also said it is trimming its staff by about 6% and will take a second-quarter charge up to $9 million.

Dollar General

(DG) - Get Report

said it would restate its earnings because of accounting irregularities. "In the investigative process, the company and the audit committee are reviewing allegations of fraudulent behavior in connection with certain of the accounting irregularities and are reviewing the company's internal accounting controls and financial reporting processes," Dollar General said in a press release this morning.

Dollar General, which runs more than 4,900 discount chains, announced it was restating earnings for fiscal 1998 through fiscal 2000, due to "certain accounting irregularities." The company reiterated its full-year 2001 earnings of 71 cents to 73 cents a share, as well as same-store sales growth in April of 8% to 9%.

Phillips Petroleum

(P)

said first-quarter profits rose, meeting the range of analysts' lowered expectations.

Phillips said income, excluding special items, rose to $504 million, or $1.96 per share, up from $271 million, or $1.06 per share, in the year-ago period. Revenue rose to $4.9 billion from $4.8 billion a year ago.

Analysts polled by Thomson Financial/First Call expected the company to earn $1.92 a share. The oil company warned earlier this month that it would fall short of a consensus estimate which stood at $2.19 a share at the time.

Retailer

Pier 1 Imports

(PIA)

this morning lowered its first-quarter earnings forecast, citing customers' preferences for sale items and lower-priced goods. The company said it sees first-quarter earnings of 12 cents to 16 cents, compared with 17 cents a share in the year-ago period, and full-year earnings of $1.00 to $1.05 a share. It earned 97 cents a share last year. Analysts on average expect earnings of 18 cents a share for the first quarter and $1.07 a share for the year. The company also said same-store sales for April are "trending slightly negative to flat" with last year.

After Friday's Close

Energy East

(EAS)

said it beat the Street's earnings expectations for the first quarter. The Albany, N.Y.-based energy service and delivery company reported that it earned $115.6 million, or 98 cents a share, in the period. Three analysts polled by Thomson Financial/First Call were anticipating a consensus earnings estimate of 95 cents a share. Energy East produced earnings of $93.3 million, or 83 cents, in the year-ago period.

Revenue also increased to $1.27 billion, up from $684.4 million in the equivalent period last year.

Certain increases were partially offset by higher costs of energy and lower retail electricity prices, the company said, adding that due to its seasonal nature, earnings for 2001 are expected to be stronger in the first and fourth quarters and weaker in the second and third, as compared with last year.

Questar

(STR)

said after Friday's close that it beat Wall Street's earnings estimates for the first quarter. It posted earnings of $64.9 million, or 80 cents a share, for the first quarter.

The consensus estimate of nine analysts polled by Thomson Financial/First Call was for Questar to post earnings of 78 cents a share in the quarter after the company said in March that it expected earnings to be 10% to 20% higher than the Street's projections at the time. The diversified energy services holding company earned $50.2 million, or 62 cents, in the year-ago period.

Revenue for the first quarter totaled $562.6 million, up from $336.7 million in the same period last year.

"Given our strong first quarter, we are confident that we can meet or exceed the current First Call estimate of $2.03 per share for full-year 2001, barring an unexpected plunge in gas prices or another unexpected event," the company said in a statement.

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Miscellany

After Friday's Close

AMR's

(AMR)

subsidiary

American Airlines

said Friday that U.S. District Court Judge J. Thomas Marten of the District of Kansas said he was granting the airline's motion for summary judgment in the U.S. government's 1999 civil lawsuit alleging predatory pricing by the airline. American said it is extremely pleased with the ruling, but it had not yet seen the court's written opinion.

A trial in the case was set to begin next month. The government was claiming that American increased the number of flights to and from its Dallas hub while lowering prices in order to drive out smaller airlines.

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