CA Says New Business Model Rules; Q4 Rocks

Preliminary License Revenue and Operating EPS

Beat Both Company and Consensus Estimates



Company To Hold Webcast at 5PM EDT Today



Apr 16, 2001, 01:00 ET from Computer Associates International, Inc.

    ISLANDIA, N.Y., April 16 /PRNewswire/ -- Computer Associates
 International, Inc. (NYSE:   CA) today announced preliminary financial results
 for its fourth fiscal quarter with revenue and earnings per share above
 analyst and company estimates.  The results reflect the success of the
 company's eBusiness strategy and customer-centric Business Model.
     On a pro forma pro rata basis for the quarter ended March 31, 2001,
 Product revenue is estimated to be approximately $1.338 billion, as compared
 with $1.209 billion for the prior year's fourth quarter.  Professional
 Services revenue is estimated to be approximately $102 million as compared
 with $181 million for the quarter ended March 21, 2000.  Total revenue is
 estimated to be approximately $1.440 billion increasing from $1.390 billion in
 the prior year's fourth quarter.  Fourth quarter operating earnings per share
 (diluted), exclusive of acquisition amortization effect and special charges,
 are anticipated to be approximately $.47 as compared with $.34 in the prior
 year's fourth quarter.  The consensus analyst estimates were $1.425 billion
 for revenue and  $.43 for operating earnings per share.  CA also anticipates
 that approximately $1.3 billion of Residual Value was concluded in the
 quarter.
     Residual Value reflects the value of contractual commitments not reported
 as revenue in the current quarter.  Such Residual Value will be amortized into
 revenue in future periods.  For more information on Residual Value and CA's
 new Business Model, please visit
 http://www3.ca.com/press/PressRelease.asp?id=98
     For the fiscal year ended March 31, 2001, on a pro forma pro rata basis,
 the company expects to report Product revenues of approximately  $5.048
 billion as compared with $4.492 billion for the year ended March 31, 2000.
 Full year Professional Services revenue is expected to be approximately $517
 million as compared to $764 million for the prior year.  Total revenue for the
 full year is expected to be approximately $5.565 billion as compared to $5.256
 billion in fiscal 2000.  Operating earnings per share (diluted), exclusive of
 acquisition amortization effect and special charges, are anticipated to be
 approximately $1.61 compared to $1.31 for the prior year.
     "The IT marketplace is embracing CA's innovation and industry leadership,"
 said CA President and CEO Sanjay Kumar. "We are extremely pleased with our
 revenue and operating EPS performance in Q4, despite difficult economic
 conditions.  In addition to the preliminary results that we're reporting
 today, we expect to report a strong balance sheet on May 22, when we announce
 complete results."
     "We continue to deliver the cutting-edge products and services our
 customers need to better manage their infrastructure and resources to extract
 greater value from existing hardware and infrastructure investments," said
 Kumar.  "Our new Business Model, which continues to be embraced by customers,
 has become an even greater competitive advantage for CA."
     "Our focus on six key areas --enterprise management, security, storage,
 eBusiness transformation and visualization, portal and knowledge management,
 and predictive and visualization --is defining the core strength of CA,"
 stated Kumar.  "People are focusing on CA and our leadership position in our
 respective markets."
     To support its branding efforts, CA also announced that its newest
 television commercial will appear in 165 countries beginning today.  It can be
 viewed in its entirety at http://ca.com/empire.
     "We're off to a great start in fiscal 2002," said Kumar, " and we are
 optimistic that customers will continue to rely upon CA for cutting-edge
 technology and services."
     CA's reported results are available in the attached table of this news
 release.  These results reflect operations in part under CA's new Business
 Model and historical Business Model, and, therefore, make the current quarter
 results not comparable to historical results. For this reason, CA is providing
 its financial results on a pro forma, pro rata basis.
     These results are preliminary in nature, pending completion of the
 Company's regular year-end audit by KPMG LLP, including independent
 attestation of pro forma, pro rata results of operations.  For additional
 information on a previously issued attestation, please reference the company's
 Form 8-K, dated December. 21, 2000, at
 http://www.sec.gov/Archives/edgar/data/356028/0000356028-00-000033.txt .
 Actual audited results, which are scheduled for release on or before May 22,
 2001, may vary.
     The company is hosting a Webcast at 5PM Eastern Daylight Time today to
 discuss the preliminary results.  Interested parties may access the Webcast
 via the Internet at http://ca.com/media/q4call.ram  A replay of the Webcast
 will be available one hour after it ends and may be accessed at the same web
 address.
 
     About Computer Associates
     Computer Associates International, Inc. (NYSE:   CA) delivers The Software
 That Manages eBusiness.  CA's world-class solutions address all aspects of
 eBusiness process management, information management, and infrastructure
 management in six focus areas: enterprise management, security, storage,
 eBusiness transformation and integration, portal and knowledge management, and
 predictive analysis and visualization.  Founded in 1976, CA serves
 organizations in more than 100 countries, including 99 percent of the Fortune
 500 companies.  For more information, please visit http://ca.com.
 
     Statements herein concerning Computer Associates' future prospects are
 "forward-looking statements" under the Private Securities Litigation Reform
 Act of 1995. There can be no assurances that future results will be achieved,
 and actual results could differ materially from forecasts and estimates.
 Important factors that could cause actual results to differ materially
 include: the risks associated with changes in the company's business model;
 the risks associated with changes in the way in which the company accounts for
 license revenue; the difficulties of compiling pro forma financial
 information, given acquisitions over time; instability resulting from changes
 to the company's business model; the significant percentage of CA's quarterly
 sales consummated in the last few days of the quarter making financial
 predictions especially difficult and raising a substantial risk of variance in
 actual results; changes in industry accounting guidance; the emergence of new
 competitive initiatives resulting from rapid technological advances or changes
 in pricing in the market; the risks associated with new product introductions
 as well as the uncertainty of customer acceptance of these new or enhanced
 products from either CA or its competition; risks associated with the entry
 into new markets such as professional services; the risks associated with
 integrating newly acquired businesses and technologies; dependency on large
 dollar licensing transactions; delays in product delivery; reliance on
 mainframe capacity growth; the ability to recruit and retain qualified
 personnel; business conditions in the distributed systems and mainframe
 software and hardware markets; uncertainty and volatility associated with
 Internet and eBusiness related activities; use of software patent rights to
 attempt to limit competition; fluctuations in foreign currency exchange rates
 and interest rates; the volatility of the international marketplace;
 uncertainties relative to global economic conditions; and other risks
 described in filings with the Securities and Exchange Commission.
 
     Computer Associates International, Inc. One Computer Associates Plaza,
 Islandia, N.Y. 11749. All trademarks, trade names, service marks, and logos
 referenced herein belong to their respective companies.
 
      COMPUTER ASSOCIATES INTERNATIONAL, INC.
      Pro Forma Pro Rata(A) Operating Earnings
      (excl. acq. Amortization and Special Items)
 
      (In millions, except per share data)
      (Unaudited)
 
                                 Three Months              Twelve Months
                                 Ended March 31            Ended March 31
                                 2001      2000            2001      2000
 
      Total Revenue            $1,440    $1,390          $5,565     $5,256
 
      Diluted Operating EPS     $0.47     $0.34            $1.61      $1.31
 
      (A) Includes combined results of operations of CA, Platinum Technology
 International, Inc. and Sterling Software, Inc.
 
      COMPUTER ASSOCIATES INTERNATIONAL, INC.
      Reported Operating Results
      (excl. acq. Amortization and Special Items)
      (In millions, except per share data)
      (Unaudited)
 
                                   Three Months             Twelve Months
                                   Ended March 31           Ended March 31
                                   2001      2000           2001      2000
 
      Total Revenue                $732    $1,907         $4,197     $6,103
      Diluted Operating EPS      $(0.29)    $1.13          $0.40      $3.28
 
 

SOURCE Computer Associates International, Inc.
    ISLANDIA, N.Y., April 16 /PRNewswire/ -- Computer Associates
 International, Inc. (NYSE:   CA) today announced preliminary financial results
 for its fourth fiscal quarter with revenue and earnings per share above
 analyst and company estimates.  The results reflect the success of the
 company's eBusiness strategy and customer-centric Business Model.
     On a pro forma pro rata basis for the quarter ended March 31, 2001,
 Product revenue is estimated to be approximately $1.338 billion, as compared
 with $1.209 billion for the prior year's fourth quarter.  Professional
 Services revenue is estimated to be approximately $102 million as compared
 with $181 million for the quarter ended March 21, 2000.  Total revenue is
 estimated to be approximately $1.440 billion increasing from $1.390 billion in
 the prior year's fourth quarter.  Fourth quarter operating earnings per share
 (diluted), exclusive of acquisition amortization effect and special charges,
 are anticipated to be approximately $.47 as compared with $.34 in the prior
 year's fourth quarter.  The consensus analyst estimates were $1.425 billion
 for revenue and  $.43 for operating earnings per share.  CA also anticipates
 that approximately $1.3 billion of Residual Value was concluded in the
 quarter.
     Residual Value reflects the value of contractual commitments not reported
 as revenue in the current quarter.  Such Residual Value will be amortized into
 revenue in future periods.  For more information on Residual Value and CA's
 new Business Model, please visit
 http://www3.ca.com/press/PressRelease.asp?id=98
     For the fiscal year ended March 31, 2001, on a pro forma pro rata basis,
 the company expects to report Product revenues of approximately  $5.048
 billion as compared with $4.492 billion for the year ended March 31, 2000.
 Full year Professional Services revenue is expected to be approximately $517
 million as compared to $764 million for the prior year.  Total revenue for the
 full year is expected to be approximately $5.565 billion as compared to $5.256
 billion in fiscal 2000.  Operating earnings per share (diluted), exclusive of
 acquisition amortization effect and special charges, are anticipated to be
 approximately $1.61 compared to $1.31 for the prior year.
     "The IT marketplace is embracing CA's innovation and industry leadership,"
 said CA President and CEO Sanjay Kumar. "We are extremely pleased with our
 revenue and operating EPS performance in Q4, despite difficult economic
 conditions.  In addition to the preliminary results that we're reporting
 today, we expect to report a strong balance sheet on May 22, when we announce
 complete results."
     "We continue to deliver the cutting-edge products and services our
 customers need to better manage their infrastructure and resources to extract
 greater value from existing hardware and infrastructure investments," said
 Kumar.  "Our new Business Model, which continues to be embraced by customers,
 has become an even greater competitive advantage for CA."
     "Our focus on six key areas --enterprise management, security, storage,
 eBusiness transformation and visualization, portal and knowledge management,
 and predictive and visualization --is defining the core strength of CA,"
 stated Kumar.  "People are focusing on CA and our leadership position in our
 respective markets."
     To support its branding efforts, CA also announced that its newest
 television commercial will appear in 165 countries beginning today.  It can be
 viewed in its entirety at http://ca.com/empire.
     "We're off to a great start in fiscal 2002," said Kumar, " and we are
 optimistic that customers will continue to rely upon CA for cutting-edge
 technology and services."
     CA's reported results are available in the attached table of this news
 release.  These results reflect operations in part under CA's new Business
 Model and historical Business Model, and, therefore, make the current quarter
 results not comparable to historical results. For this reason, CA is providing
 its financial results on a pro forma, pro rata basis.
     These results are preliminary in nature, pending completion of the
 Company's regular year-end audit by KPMG LLP, including independent
 attestation of pro forma, pro rata results of operations.  For additional
 information on a previously issued attestation, please reference the company's
 Form 8-K, dated December. 21, 2000, at
 http://www.sec.gov/Archives/edgar/data/356028/0000356028-00-000033.txt .
 Actual audited results, which are scheduled for release on or before May 22,
 2001, may vary.
     The company is hosting a Webcast at 5PM Eastern Daylight Time today to
 discuss the preliminary results.  Interested parties may access the Webcast
 via the Internet at http://ca.com/media/q4call.ram  A replay of the Webcast
 will be available one hour after it ends and may be accessed at the same web
 address.
 
     About Computer Associates
     Computer Associates International, Inc. (NYSE:   CA) delivers The Software
 That Manages eBusiness.  CA's world-class solutions address all aspects of
 eBusiness process management, information management, and infrastructure
 management in six focus areas: enterprise management, security, storage,
 eBusiness transformation and integration, portal and knowledge management, and
 predictive analysis and visualization.  Founded in 1976, CA serves
 organizations in more than 100 countries, including 99 percent of the Fortune
 500 companies.  For more information, please visit http://ca.com.
 
     Statements herein concerning Computer Associates' future prospects are
 "forward-looking statements" under the Private Securities Litigation Reform
 Act of 1995. There can be no assurances that future results will be achieved,
 and actual results could differ materially from forecasts and estimates.
 Important factors that could cause actual results to differ materially
 include: the risks associated with changes in the company's business model;
 the risks associated with changes in the way in which the company accounts for
 license revenue; the difficulties of compiling pro forma financial
 information, given acquisitions over time; instability resulting from changes
 to the company's business model; the significant percentage of CA's quarterly
 sales consummated in the last few days of the quarter making financial
 predictions especially difficult and raising a substantial risk of variance in
 actual results; changes in industry accounting guidance; the emergence of new
 competitive initiatives resulting from rapid technological advances or changes
 in pricing in the market; the risks associated with new product introductions
 as well as the uncertainty of customer acceptance of these new or enhanced
 products from either CA or its competition; risks associated with the entry
 into new markets such as professional services; the risks associated with
 integrating newly acquired businesses and technologies; dependency on large
 dollar licensing transactions; delays in product delivery; reliance on
 mainframe capacity growth; the ability to recruit and retain qualified
 personnel; business conditions in the distributed systems and mainframe
 software and hardware markets; uncertainty and volatility associated with
 Internet and eBusiness related activities; use of software patent rights to
 attempt to limit competition; fluctuations in foreign currency exchange rates
 and interest rates; the volatility of the international marketplace;
 uncertainties relative to global economic conditions; and other risks
 described in filings with the Securities and Exchange Commission.
 
     Computer Associates International, Inc. One Computer Associates Plaza,
 Islandia, N.Y. 11749. All trademarks, trade names, service marks, and logos
 referenced herein belong to their respective companies.
 
      COMPUTER ASSOCIATES INTERNATIONAL, INC.
      Pro Forma Pro Rata(A) Operating Earnings
      (excl. acq. Amortization and Special Items)
 
      (In millions, except per share data)
      (Unaudited)
 
                                 Three Months              Twelve Months
                                 Ended March 31            Ended March 31
                                 2001      2000            2001      2000
 
      Total Revenue            $1,440    $1,390          $5,565     $5,256
 
      Diluted Operating EPS     $0.47     $0.34            $1.61      $1.31
 
      (A) Includes combined results of operations of CA, Platinum Technology
 International, Inc. and Sterling Software, Inc.
 
      COMPUTER ASSOCIATES INTERNATIONAL, INC.
      Reported Operating Results
      (excl. acq. Amortization and Special Items)
      (In millions, except per share data)
      (Unaudited)
 
                                   Three Months             Twelve Months
                                   Ended March 31           Ended March 31
                                   2001      2000           2001      2000
 
      Total Revenue                $732    $1,907         $4,197     $6,103
      Diluted Operating EPS      $(0.29)    $1.13          $0.40      $3.28
 
 SOURCE  Computer Associates International, Inc.