ROUNDUP Computer Associates beats Q4 estimates, still sees 2002 EPS 2.01 usd

SAN FRANCISCO (AFX) - Computer Associates International Inc reported fourth-quarter proforma earnings of 47 cents a share, a penny better than the First Call/Thomson Financial consensus estimate and rising from 34 cents in the year-ago quarter. Chief executive officer Sanjay Kumar told analysts during a conference 

call the company continues to anticipate full-year 2002 proforma EPS of 2.01 usd a share, even though the company's services sales will likely drop off by about 5.0 mln usd a quarter. Analysts had expected the company to report full-year EPS of 1.97 usd, according to First Call/Thomson Financial.

Ira Zar, CA's chief financial officer, said the company will report first-quarter EPS of about 48 cents on sales of 1.445-1.450 bln usd. Zar expects the company's EPS to rise in subsequent quarters. The consensus 

first-quarter EPS estimate was 44 cents and the sales estimate was 1.411 bln usd, according to First Call/Thomson Financial.

Kumar said his outlook is "cautious but hopeful" amid the current economic and IT spending environment.

For the fourth quarter, CA reported proforma sales of 1.441 bln usd, up from 1.390 bln usd last year, resulting in a proforma net operating profit of 274.0 mln usd rising from 207.0 usd a year ago.

CA, which recently denied accusations it inflates its sales figures and engages in accounting tricks to boost the appearance of its financial performance, turned in an "as-reported" net loss of 410.0 mln usd, or a 71 

cents a share loss, compared to a profit of 392.0 mln usd, or 70 cents EPS, last year. Reported sales came in at 733.0 mln usd, down from the 1.907 bln usd reported last year.

The CFO said the company booked nine large contracts -- classified as those valued at over 20.0 mln usd -- in its fiscal full year to March 31, down from 17 contracts the prior year.

Large contracts are having a "decreasing impact" on the company as its dependence on "smaller dollar deals" grows, according to Zar.

During the fourth quarter, the company recorded 1.305 bln usd in new residual contract value.

For the full year, proforma EPS rose to 1.61 usd from 1.31 usd previously -- beating the First Call/Thomson Financial consensus estimate that called for earnings of 1.59 usd a share. Sales for the year rose to 5.566 bln usd from 5.256 bln.

The shares moved slightly higher in after-hours trade following the company's earnings report, trading at 33.15 usd at 6.30 pm in New York, the last quote available. The shares closed the normal-hours session up 1.54 usd at 32.56.

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