View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
July 21, 1998

CA SEES Q1 GROWTH BUT WARNS OF ASIAN “RIPPLE EFFECT”

By CBR Staff Writer

Computer Associates International Inc, the Islandia, New York- based systems management software giant reported substantial revenue growth in its first quarter, but warned of an impending slow-down in both revenue and earnings as the Asian crisis hits its multinational customers base. CA’s net earnings for the quarter were also hit by a previously disclosed billion dollar stock award given to its senior executives, pushing the company into heavy losses. The first quarter net deficit dived to $481m compared to last year’s $156m of profits, while revenues were up 18% to $1.05bn. But the loss was wholly created by the $1.07bn pre-tax charge on the vesting of twenty million shares awarded to the three top CA executives, chief executive Charles Wang, chief operating officer Sanjay Kumar and executive vice president Russell Artzt. The three were scheduled to receive this unprecedented bonus after CA’s share price topped a pre- determined high for 60 days over a twelve-month period. Before the stock award, CA made net earnings of $194m, up 25% on last year. But COO Sanjay Kumar added a cautionary note to the results. We our concerned about the ripple effect of the Asian economic turmoil on our multinational clients and its potentially adverse impact on our near-term business, he said. He implied that a buoyant market for CA’s Unicenter software in North and South America had compensated for worsening business conditions in Asia over the first quarter. Added to which, he warned of customers deferring software purchases to pump resources into their year 2000 compliance efforts. All of which he said would prompt a slow in growth at CA over the next several quarters Kumar said. The results were released after the close of trading.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU