Computer Associates International Inc announced preliminary results for the fourth quarter that will suffer due to the company’s attempt at a hostile takeover of Computer Sciences Corp. CA expects fourth-quarter revenue will be roughly $1.46bn, up from $1.21bn the prior year, with client/server revenue up 45%. Earnings per share are expected to come in at $0.75 – up 25% year-over-year – before the effect of a $33.8m charge stemming from the failed tender offer. CA says it made the preliminary announcement to dispel erroneous reports that surfaced at the time of the proposed CSC acquisition regarding the strength of its core businesses. For the full fiscal year ended March 31, 1998, CA expects that revenue will be over $4.7bn, up 18% over the $4.0bn last year. Earnings per share for the year, excluding the CSC charge, which amounts to about $0.04 per share are expected to be $2.10, an increase of 24%. Last year’s figures exclude a $598m charge associated with the acquisition of Cheyenne Software Inc. The company expects to report full results on May 19.
