Computer Associates reported financial results for its third fiscal 2005 quarter ended December 31, 2004.

“We had another quarter of solid results based on strong execution of our business strategy,” said CA’s Interim CEO Kenneth Cron. “CA is now in a position to succeed and move forward to grow the Company; our financials are sound and we are solidifying a strong management team for the future.”

Total revenue for the third quarter of fiscal year 2005 was $911 million, a 9 percent increase over the third quarter of fiscal year 2004, and $46 million greater than the high end of the range of the Company’s previous guidance.

“We are putting the pieces in place to position CA for long-term, sustainable growth,” said CA’s President and CEO-elect John Swainson. “Today’s enterprise IT customers are looking for a more holistic approach to tackling the challenges of IT systems management and security. By redefining our go-to-market strategy, focusing on our core competencies and aligning our product portfolio to customer needs, we will grow the business and become a true partner to our customers.”

On a constant currency basis and excluding $15 million in revenue related to Netegrity products, total revenue for the third quarter would have increased approximately 3 percent compared to the similar period last year.

“We are starting to see real traction from our growth initiatives,” said CA Chief Operating Officer Jeff Clarke. “Our channel business performed well this quarter, up 17 percent, and security continues to be a strong segment of our business, with more than 94 percent bookings growth. CA’s cost-cutting efforts are on track and the Netegrity integration is going extremely well.”

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