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CA stock plunges on warning

The company's shares fall more than 32 percent after it warned yesterday of tough times ahead due to conditions in Asia and order delays.

Computer Associates International shares plunged more than 32 percent this morning after the company warned of tough times ahead due to conditions in Asia and order delays, some of which it linked to customer spending to fix the year 2000 bug.

The company's stock was at $38.25, down from yesterday?s close of $57. The stock has traded as high as $61.94 and as low as $41.67 during the past 52 weeks. The shares last traded below 40 on July 14, 1997.

CA shares fell this morning despite the company's positive earnings report yesterday. The company posted first-quarter revenues of $1 billion, up 18 percent from year-ago figures. Net income for the quarter was $194.2 million, or 34 cents a share, compared with $155.8 million, or 28 cents a share, posted for the previous year. CA slightly beat Wall Street's expectations for the quarter of 33 cents a share, according to First Call.

Analysts at Bear Stearns, Merrill Lynch, and Donaldson Lufkin & Jenrette, among others, cut ratings on CA this morning.

Reuters contributed to this report.