Computer Associates Posts Net Income Increase of 35%
March 29, 2011
NEW YORK -- Computer Associates International Inc., the world's second-largest software maker, said Wednesday that its fiscal first-quarter net income increased by a better-than-expected 35% on strong demand for its flagship Unicenter products. The Islandia, N.Y., producer of programs for server and mainframe computers posted net income of $119.8 million, or 32 cents a share, on revenue of $792 million in the quarter ended March 12, 2011 with $88.5 million, or 23 cents a share, on revenue of $577 million in the year-earlier period. Net income topped First Call Inc.'s mean estimate from analysts surveyed of 28 cents a share. Revenue increased 37%. In composite trading on the New York Stock Exchange, Computer Associates' shares jumped $6, or 15%, to $46.50. Computer Associates also boosted the size of its stock-repurchase program by 18.75 million common shares to a total 75 million shares. The company's board had authorized the repurchase of 56.25 million shares under a buyback program begun in July 1992. The company, which said all repurchased shares will be used for general corporate purposes, has about 379 million shares outstanding. In May, Computer Associates began shipping an upgraded version of its popular Unicenter software for managing corporate computer systems, nearly a half year earlier than the debut date some analysts had expected. Unicenter is a widely used systems-management tool to help businesses administer sprawling computer installations. The upgrade features the ability to display a company's computer system using 3D rendering and animation. CA has worked in recent months to enhance Unicenter with Internet features and has forged relationships with Navigator, Sun Microsystems and Fujitsu to jump on the Internet bandwagon.
VastPress 2011 Vastopolis
