CA figures 'not in line with expectations'

Software vendor warns that it will be down on previous estimates

Computer Associates' (CA) fourth quarter and end of 2006 turnover could be up to $60m below its previous guidance, according to the software vendor's preliminary figures.

CA originally forecast a total turnover of between $975m and $1bn, however it has since announced that the figure will be between $940m and $950m when it reports its results to the market on 30 May.

John Swainson, chief executive of CA, said in a statement: "Our results for the [fourth] quarter were not in line with our expectations. However, CA is a company undergoing a transformation.

"I am confident that the changes we have made to transform CA will have a beneficial impact in the coming year and that we are on track to become the industry's leading management software company," he said.

The vendor claimed that, during its fourth quarter, it experienced an increase in sales expenses, such as commissions, and added that a slow bookings start to the quarter was partly to blame for the lower than expected turnover.

However, the software vendor predicted that its cash flow from operations will be between $1.360bn and $1.390, compared to its previous guidance of $1.311bn to $1.351bn.

Earlier this month CA announced an expansion of its relationship with storage VAR GlassHouse to include additional consultancy and services.