Back in April, Computer Associates International Inc announced that its fourth-quarter results would beat expectations of $0.86 (CI No 3,148). Tuesday it reported results for the quarter and for the year that were exactly what it promised. For the quarter, net income rose 27% to $336m on revenue up 9% at $1.21bn. Earnings per share for the quarter rose 29% to $0.90. The company says that sales of its Unicenter systems and network management software and improved sales in Europe are largely responsible for the solid quarter. For the year, net income was $365.9m, or $0.97, on revenue up 15% at $4.04bn – a major revenue breakthrough for CA – compared to a loss of $56.4m in fiscal 1996. The company says that revenue from client-server software jumped 48% for the year to $1.36bn. Excluding third-quarter charges of $598m for the acquisition of Cheyenne Software Inc and 1996 charges of $1.3bn for the Legent Corp purchase, net income for the year was up 28% at $963.9m, or $2.54 per share. During the quarter, CA announced the formation of a wholly-owned Japanese subsidiary.
