Computer Associates on Wednesday reported the highestrevenue for a single quarter in the company's history. Revenue for the company's third fiscal quarter for 2000, ended Dec. 31, was $1.81 billion, an increase of 33% over the $1.36 billion for the same period last year, topping even the previous record revenues of $1.6 billion earned during the fourth fiscal quarter of 1999.
CA attributes its strong performance to the growth of E- business efforts by dot-com startups and established businesses, both of which have fueled sales of CA's flagship Unicenter TNG enterprise management software suite. "The Internet and E-commerce wave is creating systems that are accessible anywhere, anytime, and by anyone," says Doug Robinson, senior VP of investor relations for CA. "Companies need to have the availability and management tools to accommodate this accessibility."
Distributed systems revenue increased 45% from last year to $898 million, while OS/390 revenue increased 19% to $776 million. Revenue from distributed systems accounted for 49% of total revenue. Professional services revenue grew 64% to $126 million, despite the company devoting resources in the quarter to support CA client's Y2K efforts free of charge. Revenue from North America totaled $1.23 billion, an increase of 41% from the previous year, while international revenue was up 27% to approximately $617 million.
For the nine months ended Dec. 31, revenue was $4.64 billion, up 28% compared with the $3.62 billion reported in the first nine months of last year. Net income, excluding the $646 million research and development charge related to the June acquisition of Platinum technology and a noncash asset write-down, was $972.8 million compared with the $842.7 million from the previous period, excluding special charges.
Data storage company EMC Corp. reported Wednesday that revenue grew 21% for the quarter ended Dec. 31 to reach $1.88 billion, and revenue for the year grew 24% to $6.72 billion.
The Hopkinton, Mass., company said fourth-quarter net income was 38% higher at $377 million, excluding one-time charges, while annual income rose 50% to $1.18 billion. Including $177 million in one-time expenses related to the acquisition of Data General, earnings were $207 million for the fourth quarter.
EMC CEO Mike Ruettgers noted that revenue grew substantially despite the decision by Hewlett-Packard, which had been the company's largest reseller, to replaced EMC with a Hitachi product last year. He said EMC expects to add 4,000 jobs in the coming year as revenue grows another estimated 25%. EMC plans to put less emphasis on sales through equipment manufacturers and more on selling directly to companies.
"The real focus is to take the product directly to customers," Ruettgers says.
Despite beating average analyst estimates for the fourth quarter by 3 cents, shares in EMC were trading down 6% at $112.75 late Wednesday afternoon.
Blaming Y2K-related slowdowns and declining sales of low-end computer hardware, NCR Corp. on Wednesday reported that revenue for its fourth quarter ended Dec. 31 dropped 15% to $1.76 billion from $2.07 billion in the same period one year earlier.
The company reported a $27.0 million operating loss, compared with net income of $49 million one year ago. But one-time tax and real estate sales gains pushed net income for the quarter up to $235 million.
For fiscal 1999, NCR reported sales of $6.20 billion, down 4.8% from $6.51 billion in 1998. In one bright spot, NCR reported that sales of data warehousing systems--a critical product line for the company--were up 14% in the fourth quarter.
Database vendor Informix Corp. yesterday reported that revenue in its fourth quarter ended Dec. 31 was a record $251.1 million, up 17% from $214.9 million in the same period one year earlier. Net income reached $42.6 million, after a $2.8 million charge associated with the company's acquisition of Cloudscape Inc., compared with net income of $20.9 million one year ago. For fiscal 1999, Informix's sales reached $871.5 million, up 18.5% from $735.5 million in 1998. The company posted a net loss of $12.2 million for the year, however, after charges for merger-related expenses and costs associated with the settlement of a shareholder lawsuit.