Print this article | Return to Article | Return to CFO.com
Company revises financials for the first three quarters of the current fiscal year.
Stephen Taub, CFO.com | US
June 16, 2004
In a regulatory filing, Computer Associates International Inc. announced that the company's new chief financial officer, Jeff Clarke, will receive an annual base salary of $650,000 with the possibility of a $650,000 bonus. His package also includes long-term incentive compensation of $2.7 million.
Computer Associates, which paid Clarke a $150,000 signing bonus, also said it will recommend that he receive options representing 235,000 shares of the company.
CA, which is being investigated by the Securities and Exchange Commission and the Justice Department, also announced in a filing that it will restate revenue for the first three quarters of the current fiscal year. This restatement is in addition to the $2.2 billion the software giant has already restated since it discovered errors in its prior reports going back to 2000.
For the nine months ended December 31, Computer Associates reduced revenue to $2.426 billion from $2.441 billion and expanded its per-share loss from continuing operations to 11 cents from 10 cents. The fourth quarter is unaffected, added the company.
This latest restatement reflects a change in the way Computer Associates booked subscription revenue, spokesman Robert Gordon told Bloomberg. "This is unrelated to our historical accounting issues in relation to our old business model," he added. Or, as the wire service put it, the restatement is due to a new, tighter accounting policy and unrelated to the company's recently uncovered fraud.
"When a company has to work as hard as CA has worked to right the ship and restore investor confidence, the company will scrub the numbers to the last penny and adopt conservative accounting principles," Jacob Frenkel, a former federal prosecutor and now with Smith Gambrell & Russell LLP in Washington, commented Bloomberg.