Computer Associates International Inc has upped its third quarter and full year earnings guidance as it delivered better that expected second quarter results.
The Islandia, New York-based enterprise software vendor turned in sales of $772m for the quarter ending September 30, a 5.3% rise on the year. The company sustained a net loss of $52m, compared to a $291m net loss last year. On an operating basis, the company turned in earnings per share of $0.04. According to First Call, analysts had expected CA to deliver earnings per share of $0.02 on sales of $770 million.
After topping analysts estimates for the second quarter, CEO Sanjay Kumar raised CA’s expectations for the current quarter and the full year. This quarter’s revenues should be $770 million to $790 million, with earnings per share of $0.04 to $0.05. Analysts currently expect earnings of $0.03 on revenues of $795.2 million. For the full year, CA’s revenue guidance is unchanged at $3.1 billion to $3.2 billon, but it expects earnings to be $0.14 to $0.16 per share, instead of its original expectation of $0.10 to $0.13 per share.
Kumar said that the economic environment was no better than in the previous quarter, but that the company as making progress with its business model. For the year to date, CA’s revenues were $1.5bn, up 6.4% on the year. Net losses so far stand at $117 million, compared to losses of $633 million last year.