Feeds

CA accused of misstating sales

NYT details alleged campaign to boost new product

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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

New hybrid storage solutions

More from The Register

next story
Quit drooling, fanbois - haven't you SEEN what the iPhone 6 costs?
How keen will buyers be when exposed to the real price?
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Ex-Autonomy execs: HP's latest wad blows apart fraud allegations
Top bods claim IT titan's latest court filing is smoking gun of 'reckless aggression'
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Elon Musk says Tesla's stock price is too high ... welp, NOT ANY MORE
As Nevada throws the SpaceX supremo a $1.25bn bone
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.