CA re-organises management

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By John Oates • Get more from this author

Posted in Financial News, 26th January 2005 09:22 GMT

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Computer Associates doubled profits for fiscal Q3 and is changing its senior management structure to make it more like IBM.

John Swainson, who takes over as CEO next month, is dividing CA into business units rather than product-based divisions. Swainson did 26 years at IBM and credits the business unit structure with Big Blue's success. The theory is that managers take a wider responsibility for performance than if they are attached on one brand or product. Bonuses will be based on whole company performance rather than individual units.

Russell Artzt, co-founder of CA who previously ran security software, will help oversee the changes and take responsibility for future product development. Mark Barrenechea takes charge of future acquisitions to "ensure that CA is on the forefront of the consolidation trend", according to an internal email seen by Reuters.

For the third fiscal quarter of 2005, which ends 31 December 2004, CA brought in revenues of $911m, up nine per cent on last year. Earnings were $36m compared to $17m a year ago.

For the full fiscal year 2005, ending March 31, CA forecasts revenues of between $3.526bn and $3.546bn. ®