Computer Associates International Inc. announced that it will revise previously filed quarterly reports by $9 million due to an adjustment in the way it calculates subscription revenue.
The software giant, embroiled in an accounting scandal and on the heels of a major management shakeup, said it will defer roughly $4 million of previously recognized revenue in the second quarter of fiscal 2004 and about $5 million in the third quarter of fiscal 2004.
The revisions will be recognized in subsequent periods, added the company.
A mere $9 million worth of revisions is negligible, of course, compared with last month’s restatement of $2 billion in revenue for fiscal 2000 and 2001. That massive revision accompanied CA’s admission that the company had backdated contracts so it could push revenue into earlier periods to meet Wall Street estimates.
The company also announced that it would report its results for the fourth quarter and fiscal year ended March 31, 2004, one to two weeks later than its originally scheduled reporting date of May 12. “Our April 26 restatement was an extensive and time-consuming process,” said Jeff Clarke, CA’s chief operating officer. “It involved a concerted effort by many people at CA and our independent auditors to ensure we completed the work with the necessary rigor and diligence. This effort, which consumed thousands of person hours, unfortunately necessitated a delay in reporting current results.”