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Computer Associates 2Q in line with expectations

Computer Associates (NYSE: CA) met analyst estimates in the second quarter.

After market close Tuesday, the mainframe software vendor reported fiscal second quarter earnings of $334.5 million, or 75 cents per share, excluding acquisition-related writedowns. That was in line with the consensus prediction culled from First Call's survey of 15 analysts for the quarter ended Sept. 30.

Second quarter revenue increased 32 percent year-over-year, to more than $1.6 billion from $1.22 billion. Company executives credited e-commerce demand for driving growth. "The rapid acceleration of global e-business strategies is therefore a real boon for CA, as more and more of our clients deploy back-end infrastructures to support the explosive growth of e-business," said Charles Wang, chairman and CEO of.

Software for IBM's System 390 mainframes saw year-over-year business growth of 19 percent, said Sanjay Jumar, president and chief operating officer of Computer Associates. Client-server software rose 35 percent. Services revenue saw a gain of 109 percent.

Foreign exchange rates reduced second quarter revenue by about $19 million, the company said. Adjusting for currency effects, international revenue would have been $523 million, up 18 percent year-over-year. North American revenue increased 42 percent.

Including amortization costs stemming from acquisitions, CA earned 60 cents per share, a penny ahead of analyst forecasts that included goodwill.

Shares of Computer Associates rose 1 1/8 to 54 1/2 in Tuesday's regular trading, prior to the earnings report.>