Computer Associates Surpasses Earnings Estimates

The software maker reported earnings per share nine cents above expectations.
Author:
Publish date:

Computer Associates

(CA) - Get Report

, the sprawling software firm that

won a surly proxy battle to keep its management intact this summer, reported results well ahead of analysts' expectations for its fiscal second quarter ended Sept. 30.

Using its controversial pro forma method of reporting financial results, the company said it earned $359 million, or 61 cents per share, on $1.44 billion in revenue.

Analysts were expecting 52 cents per share in earnings on $1.43 billion in revenue, according to Thomson Financial/First Call.

Under widely accepted accounting measures, however, the company reported a 16 cents-per-share loss and $734 million in revenue.

In August, the firm fought off an attempt by Texas investor Sam Wyly to oust chairman Charles Wang and three other board members. Originally, Wyly tried to oust the company's entire board, including CEO Sanjay Kumar, but pared his challenge amid wavering support. In the end, shareholders voted his attempted coup down entirely, although the tussle did raise further questions about the way CA reports its financial results, which some analysts have said can hide slowing growth.

During regular trading, before the company reported, Computer Associates shares gained 2 cents, or 0.1%, to finish at $27.92.