NEWS Management software company Computer Associates warned investors Thursday that revenue for the first quarter would be lower than expected.
The company reduced revenue guidance for the quarter ended 30 June to between $830m and $850m - a reduction of about three per cent to five per cent. Previous guidance was from $865m to $885m. The company said it expected to meet GAAP and non-GAAP earnings per share guidance of five cents to seven cents per share and 17 cents to 19 cents per share.
Shares dropped 5.62 per cent, or $1.46 per share, to $24.54 in trading on Thursday but ticked up, 0.24 per cent, or six cents per share, to $24.60, in after-hours trading.
CA Chief Operating Officer Jeff Clarke cited weak performance of the services business, a higher mix of maintenance in the indirect business and lower subscription revenue for the revised revenue guidance.
CA joins other software makers, PeopleSoft, Siebel Systems and BMC Software, in cutting estimates this month.
"Overall, considering the current industry dynamics, I am satisfied with our performance," Clarke said in a statement. "I am pleased that we will be able to meet earnings guidance as a result of excellent expense controls."
Clarke added that the company expected revenue to grow five per cent to eight per cent for the current quarter compared with the same period a year ago.
The company will report final results after market close on 22 July.
Richard Shim writes for CNET News.com
