CA's $35m tax charge hits net income

Raises dividends, though

By Lucy Sherriff • Get more from this author

Posted in Applications, 13th April 2005 09:55 GMT

Computer Associates has said it will miss its quarterly net income target because of a $35m tax charge it incurred by moving international profits back to the US.

The charge will cut its net income by $0.06 per share - a substantial amount, considering the company had expected income of between $0.07 and $0.08 per share. However, the company said it expects to meet its other targets, and that its main revenue target remained unchanged, at $900-920m.

The company also announced that it would double its dividend payments to $0.16 per share, to be paid out in equal quarterly installments. The dividend program will be worth approximately $90m to shareholders over the next year.

The board also authorised a $400m share-buy-back scheme for its 2006 fiscal year.

The Q4 and full-year 2005 results will be published on 26 May. ®