Computer Associates blames typo

By Bloomberg, CNET News.com
Tuesday, May 08, 2001 10:57 AM
Computer Associates overstated fiscal 2001 profit last month because of a typographical error, the software maker said in a Securities and Exchange Commission filing.

The company said it earned US$0.16 a share, excluding amortization and other items, during the year ended March 31, rather than US$0.40 as stated in a press release on April 16.

Other financial results were correctly reported, Computer Associates said in the filing and two statements. Two officials at the Islandia, New York-based company, whose software runs mainframe computers, didn't return phone calls seeking comment.

The New York Times reported Sunday that Computer Associates overstated sales and profits for years so that new products appeared to have sold more briskly. Chief executive Sanjay Kumar said the next day that Computer Associates complies with generally accepted accounting practices.

Shares of Computer Associates fell US$2.50, or 8 percent, to close regular trading Monday at US$28.20 They have dropped 42 percent in the past year.

The company said it will report audited financial results for the fiscal fourth quarter on May 22.


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