Computer Associates Intl to post loss in Q4
By Our Corporate Bureau | 15 Apr 2002
Chennai: Computer Associates International Inc expects to report a loss for its fiscal fourth quarter ended 31 March 2002. The results will include $238 million in acquisition and amortisation expenses and a charge not to exceed $60 million related to the disposal of several business lines under its Inter-Biz brand.
According to Standard and
Poors, the current loss will not impact its BBB+/Negative/A-2
ratings. Computer Associates says bookings for the new software
licenses were up 17 per cent sequentially from its fiscal third
quarter.
The companys leading, diversified, high-margin software
portfolio is viewed as defensible because of high switching costs
and entrenched customer relationships. Its strong free-operating
cash-flow generation and cash balances of $690 million on 31
December 2001 provide adequate financial flexibility.