By ,
Published January 13, 2015
Computer Associates International Inc. (CA), one of the largest U.S. software makers, Thursday posted a lower quarterly profit due to higher compliance-related costs and tax expenses.
The company, which emerged from a long-running accounting scandal last year, said it is likely to defer the filing of its annual report for up to 15 days. It is also changing the way it records stock option expenses that would increase costs.
Fiscal fourth-quarter net income was $17 million, or 3 cents a share, lower than its year-ago income of $89 million, or 5 cents a share.
Profit excluding items was 20 cents a share, in line with analysts' average estimate of 20 cents, according to Reuters Estimates.
Revenue rose 7 percent to $910 million. New deferred subscription revenue (search), a closely watched item that indicates new business signed in the quarter, increased 84 percent to $1.54 billion.
Computer Associates expects fiscal first-quarter profit, excluding items, of 21 cents to 22 cents a share, net income of 10 cents to 11 cents a share and revenue of $910 million to $930 million.
It anticipates fiscal 2006 profit, excluding items, of 90 cents to 95 cents a share, net income of 46 cents to 51 cents a share and revenue of $3.8 billion to $3.9 billion.
The estimates are weaker than analysts' average forecasts of first-quarter profit, excluding items, of 23 cents a share on revenue of $931.7 million and full-year profit of 98 cents a share on revenue of $3.87 billion.
CA shares slid to $28.40 in after-market trading from the $28.66 close.
https://www.foxnews.com/story/tax-charge-sinks-computer-associates-profit