Computer Associates International Inc posted fourth quarter revenues of $1.47bn yesterday, up 22% over the previous quarter and a percentage point above its initial estimates (CI No 3,412). Excluding a one-off charge of $33.8m related to its failed Computer Science Corp acquisition bid, net income would have been $401.7m or $.75 a share, right on target, and up from $.60 a share last year. For the year, revenues were $4.72bn, up 17% over the $4.04bn reported last year. Net income for the year, excluding the CSC charge, was $1.19bn and $2.10 a share, up 24% from last year’s $963.9m and $1.69 a share (excluding Cheyenne Software Inc acquisition charges). CA said it had seen strong worldwide demand for its software, with international revenues up 14% after currency adjustments. Client/server revenues based around Unicenter TNG grew 45% for the quarter, 44% for the year, and CA chairman and CEO Charles Wang said that in five years, the company’s client/server business had grown from $100m to nearly $2bn, while mainframe revenues had also increased by 70%. Wang once again said he was now building a new element to the business – Professional Services – an area where acquisition news is said to be pending.
