CA delays results as commission scheme hits profits


CA delays results as commission scheme hits profits

Antony Savvas

CA has delayed posting its fourth quarter and full year results, and restated the figures from the third quarter.

The company said the move was mainly as a result of a new sales commission scheme, which has seen it paying higher than expected sales commissions to staff.

The higher commissions are expected to put CA in the red for the fourth quarter, instead of at least breaking even.

John Swainson, CA’s chief executive officer, said, "We are disappointed that what would have been a solid year was impacted by execution issues relating to commissions, which adversely affected our fourth quarter performance, and which led to a restatement of our third quarter results."

CA says it is now busy trying to get its final results ready and to prevent such a problem happening again.

The company’s year ended on 31 March. News of the results delay came after CA issued a profits warning in April.

As well as finalising how it accounts for sales commission expenses, CA said it will have to tackle some tax issues before it can release final figures.

CA's share price fell $1.24 to $20.92 on news of the results delay.

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