CA makes nine workers remedial
Still probing itself
Computer Associates canned nine workers on Monday, as a result of an ongoing internal probe into the company's past financial practices.
CA's Board of Director's Audit Committee axed four employees from its legal department and five from its finance department. The firings come as the committee gets close to wrapping up its investigation, which will govern whether or not CA needs to restate past financial statements. CA has admitted to booking quarterly revenue early in fiscal 2000.
“As the Audit Committee wraps up its work and takes these remedial actions, the management team has continued to focus on the business at hand as we have in the past months,” said CA Chairman and CEO Sanjay Kumar. “We have kicked off our new fiscal year, rolled out our fiscal year objectives, and remain focused on keeping our customers at the center of all that we are doing."
A number of analysts and journalists have called for Kumar to leave CA, since the accounting indiscretions occurred while he ran the company. Earlier this month, three executives, including CA's former CFO, admitted to securities fraud.
The US SEC (Securities and Exchange Commission) and the US DoJ (Department of Justice) are still investigating the company. CA warned these investigations could result in more drastic action.
"Although the Company is unable to predict the scope or outcome of the continuing government investigation, it is possible that it could result in the institution of administrative, civil injunctive or criminal proceedings, including charges against the Company and other officers of the Company, the imposition of fines and penalties, suspensions or debarments from government contracts, and/or other remedies and sanctions."
CA intends to release its fourth quarter and full-year 2004 results on schedule. ®