<

Computer Associates Stung by Reported Accounting Probe
Thursday, February 21, 2002
By Jay Lyman
NewsFactor Network

Yankee Group vice president Zeus Kerravala told NewsFactor, “I'm not sure there's a technology company out there that doesn't stretch accounting practices.”

Reports that software giant Computer Associates' (NYSE: CA) accounting practices are being investigated by federal officials sent the company's stock price sharply lower Wednesday.

The Islandia, New York-based company -- the world's fourth largest software vendor -- said in a statement that it has not been contacted by investigators and is unaware of any probe into its accounting principles.

"The reporting of our financial results has always been in accordance with all applicable accounting principles," Computer Associates said. The statement was released in response to a report in Long Island, New York's Newsday newspaper that cited several sources close to the investigation, including a former company employee reportedly contacted by investigators.

While accounting questions in the aftermath of the Enron collapse have put pressure on a number of companies, analysts said Computer Associates is sufficiently established to sustain itself, adding that it is better for such an investigation to come when the market is at a low point than during a boom.
(More: NewsFactor.com News Source)
2002 © Triad Commerce Group, LLC.

Dan