CA Keeps Losses Down And Predicts A Profit AheadCA Keeps Losses Down And Predicts A Profit Ahead

Computer Associates saw its second-quarter revenue grow and kept losses pretty low despite an economy that's mired in uncertainty at best. CA even predicts positive results for the current quarter.

For the quarter ended Sept. 30, CA reported $772 million in revenue, a 5% increase over the $733 million it took in a year ago. The net loss was $52 million, or 9 cents a share--an 82% improvement over its $291 million, or 50-cent-per-share, loss a year ago.

The vendor predicts diluted earnings for the year of 14 to 16 cents a share. But the net is bound to be different, and the company admits that the software market is still very difficult. According to a statement released by the company, customers are buying only on an as-needed basis.

Financial analysts still haven't found a comfort zone regarding CA. Peter Goldmacher at Merrill Lynch looked to the vendor's balance sheet for confirmation that it's settling into a better stride. Instead, he found it "volatile," with unexpected ups and downs. Says Goldmacher, "With CA, it's still hard to get an underlying sense of its fundamentals."