Published January 13, 2015
Software maker Computer Associates International Inc. (CA) on Monday said its quarterly loss from continuing operations would be smaller than previously expected, driven by a rise in unearned subscription revenue.
Computer Associates, which is undergoing two federal probes into its accounting practices, also said it would take a noncash charge of up to $60 million in the fiscal fourth quarter, ended March 31, to cover asset impairments.
The Islandia, New York, company said fourth-quarter revenue would be in line with previous forecasts of $770 million. It expects to record new unearned subscription revenue of about $650 million, up 17 percent from the third quarter ended in December.
Excluding the asset impairment charge and acquisition-related amortization costs of about $238 million, Computer Associates said its operating loss should be narrower than previous forecasts of a loss of between 4 cents and 5 cents per share.