Computer Associates International Inc. has offered the government $10 million to settle a probe into its accounting, the company revealed in its earnings report Tuesday.
The Islandia-based software giant said it doesn't know if the settlement offer will be accepted, or if it will eventually be forced to pay more. The company's accounting has been the focus of a probe by the Justice Department and Securities and Exchange Commission, and led to the ouster of Chief Executive Sanjay Kumar.
CA reported net income of $89 million, or 15 cents a share, for its fourth quarter ended March 31, compared with a loss of $106 million, or 18 cents a share, in the same quarter last year.
Excluding items, CA earned 18 a share in the fiscal fourth quarter, compared with 8 cents a year earlier.
Sales climbed to $850 million from $775 million. Subscription revenue rose to $535 million from $395 million, as the company continued to move to a more subscription-driven business model.
Analysts polled by Thomson First Call on average expected the company to earn 17 cents a share on sales of $862.8 million.
Originally scheduled to report results May 12, CA announced earlier this month it would have to delay reporting results for the fiscal fourth quarter and fiscal year because its staff was overburdened by an accounting restatement.
The accounting scandal led to the company's ousting its CEO. It appointed board member Kenneth Cron as interim chief, but is still searching for a permanent CEO as well as a chief financial officer.
CA posted full-year earnings of $25 million, or 4 cents per share, compared with a loss of $267 million, or 46 cents per share, in the previous year. Revenue rose 8 percent to $3.28 billion.
For its first quarter ending June 30, CA expects earnings of five cents to seven cents a share on revenue of $865 million to $885 million. For the full fiscal year, the company expects earnings of 28 cents to 33 cents a share, on revenue of $3.5 billion to $3.7 billion.
Its New York Stock Exchange-listed shares closed Tuesday at $25.70, unchanged. In extended trading, after the release of the results, the shares were down 80 cents, or 3.1 percent.
