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Stock Watch: Computer Associates Plunges on Lower Forecast

By Nora Macaluso
Jul 5, 2000 12:00 AM PT

Computer Associates International Inc. (NYSE: CA) was down 22 1/6 at 29 1/6 in early trading Wednesday after the software maker said results for the latest quarter will be lower than previously expected.

Stock Watch: Computer Associates Plunges on Lower Forecast

Weak European sales and a soft mainframe business, along with contract delays, will put total contract value for the first quarter ended June 3rd in the range of $1.25 billion to $1.3 billion, Computer Associates said. In last year's first quarter, the company saw contracts worth $1.22 billion. The news was released after the close of trading Monday. U.S. markets were closed Tuesday for the Independence Day holiday.

"Revenue wasn't as strong in the quarter as we had hoped," said President and Chief Operating Officer Sanjay Kumar. "We intend to work aggressively to address the performance issues in our European business."

The Islandia, New York-based Computer Associates also makes anti-virus software. The company's shares received a lift earlier this year when the "Love Bug" worm crippled computers around the world, boosting demand for virus checkers.

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