Computer Associates Intl to post loss in Q4

Chennai: Computer Associates International Inc expects to report a loss for its fiscal fourth quarter ended 31 March 2002. The results will include $238 million in acquisition and amortisation expenses and a charge not to exceed $60 million related to the disposal of several business lines under its Inter-Biz brand.

According to Standard and Poors, the current loss will not impact its BBB+/Negative/A-2 ratings. Computer Associates says bookings for the new software licenses were up 17 per cent sequentially from its fiscal third quarter. The companys leading, diversified, high-margin software portfolio is viewed as defensible because of high switching costs and entrenched customer relationships. Its strong free-operating cash-flow generation and cash balances of $690 million on 31 December 2001 provide adequate financial flexibility.