Islandia, N.Y. (May 28, 2004) -- Computer Associates International, which released its 2004 results this week, said it recorded a $10 million charge in the fourth quarter based on an offer it made to the government to settle an investigation into its accounting practices.
The company, which has been engulfed in an accounting scandal related to premature revenue recognition that forced its chief executive to step down and led it to fire several top executives, noted that it couldn't predict the timing or outcome of the investigation or the amount it might have to pay.
CA was originally scheduled to report fourth quarter and full 2004 fiscal year results on May 12, but announced earlier this month it would delay reporting because its staff was busy working on its accounting restatement.
In April, CA restated $2.2 billion in revenue it prematurely booked during fiscal 2000 and 2001 and said at the time that it would amend previous filings to defer roughly $9 million in revenue due to an adjustment in the way it calculates subscription revenue. But in its filing this week, the company said its amended quarterly reports, which it will file before June 14, will reflect a revenue reduction of $3 million, $5 million and $7 million for the first, second and third quarters of fiscal 2004, respectively.
In line with preliminary results announced earlier this month, CA reported fiscal 2004 revenue of $3.28 billion, up 8 percent over fiscal year 2003. Total revenue for the fourth quarter of fiscal year 2004 was $850 million. CA said that, beginning in its second quarter, it would begin accounting for channel revenue on a subscription basis, which it expects to decrease fiscal 2005 revenue by roughly $125 million.
-- Melissa Klein Aguilar
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