CA Under Fire

"If it will change CA's attitude toward smaller channel partners, I'm all for it," said Leon McCaskill, CEO of Infinet, a Dallas-based solution provider. "Basically, the smaller resellers don't seem to matter much to [CA anymore."

CA could face another proxy fight against Ranger for seats on CA's board if directors fail to fire Chairman Charles Wang, President and CEO Sanjay Kumar, and CFO and Senior Vice President of Finance Ira Zar, said Stephen Perkins, managing director of Ranger, in an interview last week. Last summer the Dallas investment firm, founded by entrepreneur Sam Wyly, launched a failed bid to oust CA board members.

"There's always the option of another proxy solicitation," Perkins said.

In a letter sent last Monday to CA's independent directors, Perkins called for the board to fire the trio of executives.

Ranger wants their ouster because of poor

performance and because they have not delivered on promises they made at the end of the proxy fight, Perkins said.

"I think there needs to be some changes [at CA, but whether it calls for executive changes, I don't know," said Tom Lien, vice president of business development at ePlus Technology, a Herndon, Va., solution provider.

CA needs to better focus its vast product line and build stronger relationships in the channel, Lien said.

But another solution provider said a bid to overthrow CA's management team would cause more turmoil for the already beleaguered company, which is facing a preliminary inquiry by the Securities and Exchange Commission.

"[Kumar is brilliant, and it would be difficult to bring someone in from the outside to replace his knowledge of the organization," said Steve Pazol, president of Professional Consulting Services, Chicago.

CA executives issued a statement defending the company's business model, accounting practices and growth, calling the letter from Ranger "misleading, self-serving and inaccurate."

"Our new business model is working well and creating sustainable competitive advantage. Our ratable accounting is GAAP-compliant and considered transparent by accounting experts. We are growing and gaining new customers," they said.

The CA statement also accused Perkins and Wyly of "trying to call CA into question as a way of pursuing a personal vendetta."

Ranger holds approxi-mately 3 million options for CA shares that expire in 2006 and 2007, giving the investment firm opportunities to launch proxy bids over the next five years to try to exact management changes, Perkins said.