ISLANDIA, New York: Shares of CA, which makes software for mainframe computers, rose Tuesday despite a 64 percent drop in first- quarter earnings and a plan to trim its work force by about 10 percent, or 1,700 positions.
The company, formerly known as Computer Associates, said in an earnings report late Monday that it expected charges of about $200 million for the restructuring plan, which, in addition to the job cuts, included facilities consolidations and other cost-saving measures.
CA is still recovering from an accounting scandal that resulted in a $225 million settlement with shareholders. The company said net profit for the quarter ended June 30, dropped to $35 million from $97 million a year earlier. Revenue rose to $956 million, beating analysts’ expectations. for revenue of $932.8 million. CA stock was up $1.52, or 6.9 percent, at $23.59 in afternoon trading in New York.
Fuente: International Herald Tribune, con información de AP