Zeev's Turnips Patch-No Politics (ZEEV)

[marketmaven]

Shock ! CA Manipulated its Reported Results ~
The U.S. Securities and Exchange Commission is considering lodging civil charges against Computer Associates International Inc. for improperly booking revenue, the software maker said. CA's own audit committee reached similar conclusions about the 2000 fiscal year in October, when it reported it found evidence of improperly dated contracts. As a result, CA forced out Chief Financial Officer Ira Zar and two top finance executives. CA also had faced shareholder lawsuits relating to its accounting practices, but settled them in August 2003, taking a $150 million charge to do so. The settlement was reached before the board revealed it had found irregularities.
The 2000 fiscal year is important because CA critics have suggested the company's switch in October 2000 to a new method of accounting was designed to mask a precipitous drop in revenue top executives knew was coming as the technology boom cooled off. The new method, championed by Mr. Zar, the finance chief forced to resign, effectively halved CA's reported revenue. In addition to the board inquiry and the SEC investigation, the Islandia, New York, company is being investigated by the U.S. Justice Department. A spokesman for the U.S. Attorney for the Eastern District of New York