Accounting & Tax

Computer Associates Restates $2.2 Billion

The software giant also names Kenneth Cron as interim chief executive officer and hands chief financial officer Jeff Clarke the additional title of...
Stephen TaubApril 27, 2004

Amid a blizzard of announcements Monday morning, Computer Associates International Inc. reported that it will restate $2.2 billion of revenue over a two-year period. The company also named an interim chief executive officer and promoted its recently named chief financial officer.

The software giant, which is currently being investigated by several federal agencies, announced that its audit committee found that $1.782 billion of revenue was booked prematurely during fiscal 2000 and $445 million in fiscal 2001.

As a result of the restatement, fiscal 2000 revenue decreased $2 million, to $6.092 billion, said the company; 2000 net income and earnings per share were unaffected.

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For fiscal 2001, revenue increased $558 million, to $4.748 billion. The net loss for the year dropped $333 million, from a previously reported loss of $591 million to a restated loss of $258 million, said the company. The per-share loss improved $1.02, to 44 cents.

The company reported that none of its financials were affected for the 2002 and 2003 fiscal years or for the first three quarters of fiscal 2004.

Computer Associates also named Kenneth Cron, an independent director, as interim chief executive officer. Cron joined the company’s board of directors in 2002; previously he was chairman and CEO of Vivendi Universal Games.

The company also announced that Jeff Clarke, who was named chief financial officer earlier this month, will hold the added title of chief operating officer.

Speaking of Clarke, recently named chairman Lewis Ranieri said: “When Jeff arrived at CA, we were well aware of his superior operations and management experience and we are pleased that we can draw on it at this time.” Clarke will oversee the company’s sales, partnership, business development, marketing, finance, and human resources departments.