NEW YORK – Computer Associates International Inc. (CA), the world's fourth-largest software maker, Tuesday posted a higher quarterly profit, helped by rigid cost controls, but lowered its full-year earnings and revenue outlook.
The company, which warned about its revenue just two weeks ago, said its profit and revenue beat analysts' estimates. But it now expected its current-quarter and full-year earnings to be lower than what Wall Street has been anticipating.
"It's a pretty tough market, and continues to be so," said Bill Snyder, an analyst with Meta Group. "Customers a the quarter, citing a shortfall in services sales.
The company posted a profit of $53 million, or 9 cents a share, in the fiscal first quarter ended June 30, compared with $8 million, or 1 cent a share, a year earlier.
Computer Associates, based in Islandia, N.Y., expects fiscal second-quarter profit of 15 cents to 17 cents a share, net income of 3 cents to 5 cents a share, on revenue of $830 million to $850 million, compared with the average Wall Street expectation of 18 cents a share on revenue of $870 million.
For fiscal 2005, Computer Associates looks for a profit, excluding items, of 70 cents to 75 cents a share. That is lower than the Wall Street average estimate of 77 cents a share.
The company also trimmed its forecasts for full year sales, saying it expects fiscal 2005 revenue of $3.4 billion to $3.5 billion. Analysts are looking for revenue of $3.59 billion.
Previously, Computer Associates anticipated sales of $3.5 billion to $3.7 billion.
Including items, CA expects net income of 25 cents to 30 cents a share for the full year.