Software Firm Says Profit Will Fall Short

Business software maker Computer Associates International Inc. warned that earnings for its fiscal first quarter will fall short of expectations, a move that could bring down the entire software sector when Wall Street trading resumes today, an analyst said. Analysts had expected the firm to earn 55 cents a share for the quarter ended June 30, said research firm First Call/Thomson Financial. Computer Associates said it expects revenue to be $1.25 billion to $1.3 billion, compared with $1.22 billion last year. “That’s a big miss,” said Paul Rodriguez of C.E. Unterberg, Towbin, which had expected the company’s revenue to be $1.6 billion. Computer Associates stock, which closed at $51 Monday on the New York Stock Exchange, could fall as much as $8 to $10 a share, Rodriguez said. The company’s 52-week high was $79.44 and its low was $42.31. The Islandia, N.Y.-based company attributed the revenue shortfall to weak European sales and softness in its mainframe business. The company said several large contracts expected to close in the final days of the quarter have been delayed.