CA revenues fall but losses narrow

Computer Associates (CA) has posted a $231m (£161m) net loss for its third fiscal quarter of 2002.

Computer Associates (CA) has posted a $231m (£161m) net loss for its third fiscal quarter of 2002.

CA revamped its business model and accounting practices in late 2000 to encourage customers to purchase software through subscriptions.

This quarter marks the first for which year-on-year comparisons are available under CA's new business model.

While CA's overall revenue for the quarter has dropped, its product sales revenue increased by 2.3%, to $678m (£474m). However, the gain was offset by a 40% drop in CA's professional services revenue, from $120m in the third quarter of 2001 to $71m (£49m) in the current quarter.

Looking at the results using standard accounting principles, CA earned quarterly revenue of $749m (£524m), down from $783m a year ago. The net loss figure of $231m (£161.6m) is an improvement on its loss of $342m in the third quarter of 2001.

Sales of CA's enterprise management software, including its flagship Unicenter system, contributed 41% of CA's revenue for the quarter. Storage sales made up 19%, while security software accounted for 11% - figures that have stayed constant for the first nine months of CA's 2002 fiscal year.

CA's chief executive Sanjay Kumar said he saw "no massive spending burst" during the quarter, tracking instead a gradual build-up in customer sales. Kumar also anticipates higher revenue in the company's fourth quarter - a seasonally strong period - but does not expect to top last year's figure.

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