Computer Associates International Inc previewed solid fourth- quarter results Thursday, announcing that earnings will beat expectations on revenue up 11% year-over-year. CA says total revenue for the quarter will amount to roughly $1.63bn, up from $1.47bn in last year’s quarter. Earnings per share, meanwhile, are expected to be $0.83, or $0.02 better than the First Call consensus.
The strong results were largely driven by increased client/server revenue which jumped more than 25% to $802m, from $640m last year on the back of strong sales of the Unicenter TNG product family. Another boost was growing momentum in its services business. Professional services revenue in the quarter was about $93m, up 121% from last year. CA adds that once it completes the previously-announced $3.5bn acquisition of Platinum Technology Inc, services will see even greater growth opportunities in new and emerging markets.
For the full fiscal year ended March 31, CA expects to post revenue of $5.25bn, also an increase of 11% over last year’s $4.72bn. Operating earnings per share for the year are expected to be $2.31, an increase of 10%. The Islandia, New York-based software giant said it expects to release full financial results for the quarter and year on or before May 28.
