US Report: Asia crisis impacts CA sales recovery
Published: 04 Sep 1998 17:55 BST
Computer Associates (NYSE:CA) is now unsure when its sales will recover as its main customers continue to hold off purchases because of wariness about Asia, said CEO Charles Wang in an interview with Bloomberg News.
Shares of CA were up 1/8 to 30 5/8 in early trading. In late July, the number four independent US software maker warned that sales would be over the next several quarters. Shares have fallen 47 percent since the announcement on July 22, in tandem with a general market downturn. CA said that the "uneasiness" in its top three to five customers about Asia has continued, and the company doesn't know when sales will recover."I don't have a crystal ball," said Wang. "I don't know, it depends on the International Monetary fund and what they're going to do, and whether currencies get devalued."
CA's main customers include a General Electric (NYSE: GE) unit and Xerox (NYSE: XRX), which do business around the world, including in Asia. If currencies in Asia are cut, revenue out of the region takes a hit when sales are converted back into US dollars. With this on CA's customers' minds, they're holding off big-ticket purchases, such as the company's software packages. However, CA remains comfortable with estimates for its second quarter, Wang said.
Did you find this article useful?
44 out of 76 people found this useful
- Share this article:
