STOCK WATCH

CA posts second quarter profits

Computer Associates has restored investor confidence by posting healthy financial results for its second fiscal quarter. Strong sales of its Unicenter TNG product line helped CA outstrip analysts' estimates for the period ended 30 September, with net income rising eight per cent to $293.9 million.

Sales rose by nine per cent from $1.12 billion to $1.22 billion, with client/server revenues reaching more than $600 million, including Unicenter - the first time it has accounted for half the company's business.

Informix

Informix has reported a second-quarter net income of $19 million compared with a loss of $110.5 million last time. Revenue was up 23 per cent at $185.2 million. Nine-month net income rose to $33 million compared with a loss of $366 million and revenue was up eight per cent at $520 million.

Western Digital

California-based hard disk drive maker Western Digital saw its losses increase after it released its first-quarter net loss of $194.7 million, down from last year's profit of $62.7 million. Revenue was down 40.3 per cent to $650.9 million. The figures included a $77 million increase in the provisions made to cover warranty costs on the company's last generation of drives.

SAP

SAP delivered on its promises for its third financial quarter, but analysts noted that software licence sales showed sluggish growth. The German software supplier said revenue for the period ended 30 September was up 43 per cent to DM 2 billion from DM 1.4 billion in the same period last year.

Profit rose from DM 251 million to DM 376 million.

Sybase

Sybase has achieved third-quarter net profit of $2.2 million, up from a $5.9 million loss for the same quarter last year. Sales were down 9.8 per cent to $210.3 million.

For the nine months ended 31 September, profit was $78.5 million up from losses of $29.9 million last year, although sales were down 6.7 per cent to $634.9 million.

Silicon Graphics

Silicon Graphics reported a third-quarter net loss of $44 million, including a $33 million gain, for the Mips Technology IPO (initial public offering), down from a loss of $56 million last time. It also reported revenue down 20 per cent at $616.3 million compared with $767.9 million. At the nine-month mark, SGI's net loss was $131 million, up from $23.8 million last time, and revenue was down 7.2 per cent at $1.92 billion compared with $2.07 billion last time.

Network Associates

Network and internet security software company Network Associates made a net loss of $132.1 million in the three months ended 31 September, down from profit last time of $11.5 million. Sales were up 33.2 per cent to $242.4 million.

Inacom

Nebraska IT management services company Inacom has reported third-quarter net profits up 53 per cent at $11 million and sales up five per cent to $1.1 billion.

Electronic Arts

Electronic Arts has made a second-quarter net loss of $25.3 million, down from profit of $41,000. Sales were up 29.5 per cent to $245.8 million.

The results included charges for purchased in-process research and technology of $41.8 million and $44.1 million respectively.

Acclaim

Games publisher Acclaim Entertainment has posted healthy results for the year ended 31 August, signalling the end of its financial worries.

Sales nearly doubled from $165.4 million to $326.6 million, exceeding analysts' predictions. Profits climbed to $20.7 million.

Legato Systems

Legato Systems has made a third-quarter net profit of $7.5 million, up 76.2 per cent. Revenue was up 70.5 per cent to $37.5 million. Nine-month net profit rose 77.8 per cent to $18.1 million and revenue was up 70.7 per cent at $98.6 million.