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CA Posts Mixed Results

Computer Associates International Inc. (CA) (NYSE: CA) posted its financial results for the first quarter of 2005 last night, reporting revenue of $860 million, up 9 percent on the same quarter last year, and up $10 million on guidance provided earlier this month (see CA Reports Rising Q1 Revenue).

Non-GAAP earnings per share were 21 cents, up from 14 cents in the same period last year. GAAP earnings were 9 cents per share, compared to 1 cent in the corresponding quarter a year ago.

Earlier this month, the Islandia, N.Y.-based firm warned that its revenues for the quarter were likely to be between $830 million and $850 million -- 3 percent to 5 percent below its original guidance. However, during yesterday's earnings call, CAs CFO Jeff Clarke claimed the company’s results were buoyed by "excellent expense controls" and pointed to strong performance in its security and storage products.

Revenues for CA’s security products were $103 million during the first quarter, more than double the figure for the same quarter last year. Clarke also highlighted the company’s Brightsor storage management range, noting the 25 percent year-over-year revenue growth enjoyed by CA’s ARCserve Backup offering.

But CA is by no means out of the woods: The company lowered its revenue guidance for the full fiscal year 2005 to between $3.4 billion and $3.5 billion. The company’s previous guidance had been in the range of $3.5 billion to $3.7 billion. The fact that the company's services operation did not perform "as well as anticipated" during the quarter was a major factor in the decision, according to Clarke.

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