Net income fell to US$138 million, or 54 cents a share, for the quarter ended Sept. 30, from US$334 million, or 75 cents, a year earlier, excluding goodwill amortization, the company said in a statement. Analysts were expecting 52 cents a share, the average estimate from First Call/Thomson Financial. Including goodwill amortization, earnings were 23 cents per share, down from 60 cents a year earlier.
Sales at the Islandia, N.Y.-based company rose 5.4 percent to US$1.55 billion from US$1.47 billion a year earlier.
In August, Computer Associates president Sanjay Kumar said the company, whose software manages large corporate computer systems, would see less growth from its software for running IBM's S/390 mainframe computers. A slowdown in S/390 upgrades contributed to a first-quarter profit shortfall.
Computer Associates shares rose US$1.06 to US$26.69 on the New York Stock Exchange. They are down 62 percent this year.
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