Another record quarter for Veritas, as CA suffers
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The latest results yesterday underlined the rapidly changing fortunes of two software companies increasingly in competition with one another ? Veritas and Computer Associates.
23 October 2003 The latest release of quarterly earnings yesterday underlined the rapidly changing fortunes of two software companies increasingly in competition with one another -- Veritas Software and Computer Associates (CA).
Storage management software supplier Veritas said that third-quarter revenue rose to $451 million compared with $366 million a year ago. Profits were up 114% to $77.6 million. The results build on successes in its last two quarters, when revenues hit record highs.
The company also said it expected a fresh revenue record in its fourth quarter, issuing a forecast of between $480 million and $490 million. "We have clearly strengthened the company during the downturn and expect to deliver record results again in the fourth quarter," said Veritas CEO Gary Bloom.
However, the picture was gloomier at CA, the systems management software company, where a $150 million charge to settle a number of lawsuits wiped out the possibility of a net profit in its second quarter.
CA reported a net loss of $87 million, compared with a net loss of $52 million last year. The results included a $100 million charge to settle lawsuits that had questioned the veracity of CA's accounting practices. They also included a charge of $40 million to settle a breach-of-contract case brought by a Utah company.
There was some good news for CA, however. Revenue in the quarter grew at a faster rate than expected, by 8%, to total $833 million. CEO Sanjay Kumar said the growth was spurred by "a warm-up in technology spending" in North America.
