Islandia, N.Y. (June 7, 2004) -- Former Computer Associates International chief executive Sanjay Kumar, who stepped down from the helm of software maker amid its unfolding accounting scandal, has parted ways with the company.
CA announced Friday that Kumar, who stepped down as CEO and resigned from the board in April and took on the post of chief software architect, decided to leave the company. Both Kumar and the firm's chairman, Lewis Ranieri, say that the move is aimed at helping CA put its accounting woes behind it.
“It has become increasingly clear to me in the past few days that my continued role at CA is not helping the company's efforts to move forward," Kumar said in a statement. "I understood that my stepping down as chairman and CEO represented a break with the past, but I have reluctantly concluded that as long as I hold any position, focus on past issues and my current role will continue."
“I believe my decision to leave at this time is the right one,” Kumar said. “It hopefully will permit CA to move forward.”
“The board is committed to reaching a settlement of the government's investigation into the company's past accounting practices as quickly as possible," said Ranieri. "We are working hard to take the remedial steps necessary to put this entire matter behind CA. Sanjay's decision to leave CA was made in that spirit.”
The company has been under investigation by both the U.S. Attorney's Office and the Securities and Exchange Commission. Kumar has not been charged with any wrongdoing in the probe, which relates to the company's past practice of prematurely recognizing revenue from software license contracts. The company admitted that prior to October 2000, it held the financial period open after the end of the fiscal quarter in order to recognize revenue from contracts that weren't executed by the end of the quarter.
In April, CA announced that it would restate $2.2 billion in revenue that it prematurely booked during fiscal 2000 and 2001. Earlier that same month, the beleaguered software giant fired nine employees in its legal and finance departments, while three of its former employees, including former chief financial officer Ira Zar, pled guilty to federal charges, including conspiracy to obstruct justice and conspiracy to commit securities fraud charges, and settled civil fraud charges with the SEC.
-- Melissa Klein Aguilar
