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CA Posts Q2 Loss

Computer Associates International Inc. (CA) (NYSE: CA) released its second-quarter 2005 results last night, posting $855 million in revenues, up 6 percent from the same period last year. This came in slightly above analyst estimates of $843.2 million (see CA Reports Solid Q2).

But the troubled software giant reported a GAAP loss of $94 million, which equaled 16 cents per share, compared to a GAAP loss of $90 million, or 16 cents per share in the year-ago quarter. The results included a $218 million settlement charge to resolve the high-profile accounting scandal that has dogged the company for the last year (see CA's Mea Culpa and Kumar Leaves CA).

CAs loss also includes a $28 million charge related to the company’s ongoing restructuring plan. The company recently sought to draw a line under a turbulent few months by cutting 800 jobs and announcing a major overhaul of its business (see CA Cuts 800 Jobs).

The extent of CA’s recent problems were reflected in the quarterly figures. Non-GAAP earnings -- excluding the restructuring charges, the costs of settling the accounting problems, and a $7 million gain from a shareholder settlement in 2004 -- would have been 22 cents per share. Analyst estimates had been earnings of 16 cents per share.

Such is the complicated nature of CA’s finances at the moment. There have been reports that the company has even set up an online financial tutorial for investors and analysts.

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