Feeds

CA accused of misstating sales

NYT details alleged campaign to boost new product

  • alert
  • submit to reddit

The essential guide to IT transformation

Computer Associates (CA) has been accused of misstating its sales results over many years in order to boost its financial results and market position.

The accusations, contained in an article in the New York Times, have been denied by the enterprise software firm, which is holding a press conference today in order to defend its position.

The paper quotes anonymous executives at CA who said it had inflated the reported sales of newly introduced products to create the impression that they were selling well. It said CA booked fees from software contracts as license fees immediately despite the fact money would only come in over a period of years.

According to the New York Times, if CA had used generally accepted accounting practices its sales for the quarter ending March 31 would have fallen by 60 per cent to $732 million, instead of the increase from $1.21 billion to $1.34 billion the firm reported.

CA said its pro forma pro rata results have been adjusted so that results of sales under a licensing scheme it introduced in October can be compared with its previous financial results. Under CA's new business model, which it describes as providing more conservative revenue recognition, it sells a subscription for its software and accounts for sales over the life of this contract. ®

External links

CA denies NYT's accusations
CA says new business model rules; Q4 rocks

Related stories

CA is 'friendly, open, trusted'
Wang wangles fatter bonus

5 things you didn’t know about cloud backup

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.