CA Expects Smaller 4Q Loss, Sells interBiz Assets

Computer Associates International

For the quarter ended March 31, CA said the loss, excluding charges, is expected to improve from prior guidance of a loss of 4 cents to 5 cents per share, based on a GAAP (Generally Accepted Accounting Practices) basis. The company did not provide a specific new per-share target.

CA also now reports pro forma results to reflect the fact that it now recognizes revenue over the term of a license rather than as a lump sum at the time of the sale.

The enterprise management software vendor said it expects revenue for the quarter to be in line with prior guidance of $770 million and that it expects to record new unearned subscription revenue of approximately $650 million.

"In a continuing cautionary spending environment, we are demonstrating to our clients the value and return on investment that our technology solutions provide in the complex IT workplace today," said Sanjay Kumar, president and CEO of the Islandia-based company, in a statement.

The company plans to release actual fourth-quarter results on May 14.

CA Monday also sold its interBiz line of supply chain management, financial management and human resource management products to SSA Global Technologies in a deal closing this month. As a result, 725 CA employees were transferred to SSA, an ERP software vendor based in Chicago.

Financial terms of the deal were not disclosed.

CA has been under fire since February when it disclosed it is the subject of preliminary inquiries by the Securities and Exchange Commission and the U.S. Attorney's Office. Last month Moody's Investors Service cut the vendor's debt rating, and Dallas-based investment firm Ranger Governance renewed its call for the ouster of top CA executives after launching a proxy fight for seats on CA's board last summer.

Shares of CA traded up 32 cents at $20.22 Monday morning.