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Computer Associates International, Inc.
1997 Annual Report
TNG. The Next Generation

Table of contents

  • Page 1
    Computer Associates International, Inc. 1997 Annual Report TNG. The Next Generation

  • Page 2
    All product names and service names referenced herein are trademarks or service marks of their respective companies. © 1997 Computer Associates International, Inc.

  • Page 3
    ...information for the fiscal years ended 1997 and 1996 excluding the effect of the charges for purchased research and development. (In millions, except per share and per employee amounts) 1997... 4,000 Computer Associates' Total Stockholder Return Versus S&P 500 and S&P Computer Software and Services...

  • Page 4
    ... CA's ongoing ability to provide value-added service and products to seasoned software and hardware vendors. The purpose of these alliances is to provide leading-edge enterprise management solutions using Unicenter as the foundation. A two-fold plan lets CA build business software products...

  • Page 5
    .... OPAL's standalone and browser client applications easily integrate today's and tomorrow's information sources. In the global arena, new frontiers, and a surge in demand for CA products and services inspired CA to complete the acquisition of our Japan subsidiary. This office, our Beijing and new...

  • Page 6

  • Page 7
    ... is the technological foundation of their computing environment. CA's core competency is designing, building, and delivering the "best-of-breed" tools to develop, deploy, and manage this infrastructure. Development. CA provides the tools used by the world's software developers to build the next...

  • Page 8

  • Page 9
    ... in Singapore, a CA technical support person is there. Twenty-four hours a day, seven days a week, CA supports its products worldwide. This level of support gives our clients the comfort that they will never be left in the dark by CA. Openness And Interoperability. No technology company can stand...

  • Page 10

  • Page 11
    ...-reality interfaces, object-oriented databases and end-to-end management tools are available now from CA. We're able to deliver this leading-edge technology faster, because of our single-minded focus on "The Next Generation" and our obsession with getting there first. TNG is part of everything we...

  • Page 12
    Executive Officers Charles B. Wang Chairman and Chief Executive Officer Sanjay Kumar President and Chief Operating Officer Russell M. Artzt Executive Vice President Research and Development Peter A. Schwartz Senior Vice President and Chief Financial Officer 10

  • Page 13
    ... State University of New York at Stony Brook Willem F. P. De Vogel President Three Cities Research, Inc. Sanjay Kumar President and Chief Operating Officer Computer Associates International, Inc. Irving Goldstein Director General and Chief Executive Officer INTELSAT Charles B. Wang Chairman and...

  • Page 14
    Report of Management Report of Independent Auditors Management's Discussion and Analysis Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Stockholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements ...

  • Page 15
    ... reporting matters. Report of Independent Auditors Stockholders and Board Of Directors Computer Associates International, Inc. We have audited the accompanying consolidated balance sheets of Computer Associates International, Inc. and subsidiaries as of March 31, 1997 and 1996, and the related...

  • Page 16
    ... its Unicenter ® family. The Cheyenne division's desktop and local area network products acquired in November 1996 contributed marginally to the increase. Revenue in North America increased 40% for fiscal year 1997 due to strong acceptance of the Company's client/server software solutions...

  • Page 17
    ... continued demand for less restrictive enterprise licensing pricing options, as well as the continued growth of licensing fees for the Company's client/server products. In addition, the inclusion of Legent mainframe and client/server products acquired in August 1995 contributed to revenue growth...

  • Page 18
    ... results may be affected by a number of factors, including, but not limited to: uncertainties relative to global economic conditions; market acceptance of competing technologies; the availability and cost of new solutions; its Selected Unaudited Quarterly Information (in millions, except per share...

  • Page 19
    .... The increase was primarily due to higher net income. Accounts receivable balances increased during fiscal 1997, as the Company continues to use installment payment plans as a competitive advantage during the sales process. Clients show an increased willingness to finance their licensing fees. The...

  • Page 20
    ... and Equipment Land and buildings Equipment, furniture and improvements Allowance for depreciation and amortization Total Property and Equipment Purchased Software Products, net of accumulated amortization of $1,079 and $786 Excess of Cost Over Net Assets Acquired, net of accumulated amortization...

  • Page 21
    ... payable and current portion of long-term debt Accounts payable Salaries, wages and commissions Accrued expenses and other liabilities... Treasury stock, at cost-58,645,259 shares for 1997 and 57,305,279 shares for 1996* Total Stockholders' Equity Total Liabilities and Stockholders' Equity 1997 ...

  • Page 22
    ...1997 Product revenue and other related... Net Income (Loss) Per Common Share Weighted average common shares used in computation $3,300 740 4,040 Year Ended March 31, ... adjusted for three-for-two stock splits effective August 21, 1995 and June 19, 1996. See Notes to Consolidated Financial Statements. 20

  • Page 23
    ... declared ($.097 per share)(2) Exercise of Common Stock options and other 401(k) discretionary contribution Translation adjustment in 1997 Net change attributable to unrealized loss on marketable securities Purchases of treasury stock Balance at March 31, 1997 $ 42 Additional Paid-In Capital(2) $495...

  • Page 24
    ...Activities: Dividends Purchases of treasury stock Proceeds from borrowings Repayments of borrowings Exercise of common stock options and other Net Cash Provided by (Used in) Financing Activities Increase (Decrease) in Cash and Cash Equivalents Before Effect of Exchange Rate Changes on Cash Effect of...

  • Page 25
    ... Note 1 - Significant Accounting Policies Description of Business: Computer Associates International, Inc. and subsidiaries (the "Company") designs, develops, markets and supports a wide range of integrated computer software products. Property and Equipment: Land, buildings, equipment, furniture...

  • Page 26
    ..., and support of a broad range of computer software products for the management of information systems used to manage mainframe, midrange, server, workstation and PC systems deployed throughout a business enterprise. The acquisition was accounted for as a purchase. The results of Legent's operations...

  • Page 27
    ...related to the Legent acquisition is reflected in only the fiscal year 1996 results of operations: Year Ended March 31, 1997 1996 (Amounts in millions, except per share amounts) The following table reflects pro forma.... *Adjusted for three-for-two stock splits effective August 21, 1995 and June...

  • Page 28
    ...17 $56 Note 4 - Geographic Area Information and Foreign Operations United States March 31, 1997: Revenue: To unaffiliated customers Between geographic ...wholly owned subsidiaries in 43 foreign countries, including Canada, Middle East, Africa, Europe (22), South America (6) and the Pacific Rim (12)....

  • Page 29
    ...renewal options and additional rental based on escalation in operating expenses and real estate taxes. The Company has no material capital leases. The Company has announced plans to build a facility in the United Kingdom. Rental expense under operating leases for the years ended March 31, 1997, 1996...

  • Page 30
    ... with a vesting schedule established by the Stock Option and Compensation Committee. As of March 31, 1997, 20,250 shares of the Company's Common Stock were available for future grants. 5.5 million of the 6.1 million options which are outstanding under the 1987 Plan were exercisable as of that date...

  • Page 31
    .... At March 31, 1997, 3.9 million of the 19.6 million options which are outstanding under the 1991 Plan were exercisable. These options are exercisable at $5.00-$61.31 per share. The 1993 Stock Option Plan for Non-Employee Directors (the "1993 Plan") provides for non-statutory options to purchase up...

  • Page 32
    ...to the number of shares under option and option prices have been adjusted to reflect three-for-two stock splits effective August 21, 1995 and June 19, 1996. Note 10 - Profit Sharing Plan The Company maintains a profit sharing plan, the Computer Associates Savings Harvest Plan ("CASH Plan"), for the...

  • Page 33
    ...'s international headquarters on Wednesday, August 13, 1997 at 10:00 a.m. E.D.T. Investor Relations Computer Associates International, Inc. One Computer Associates Plaza Islandia, NY 11788-7000 General Company information and quarterly earnings can be obtained by contacting Investor Relations at...

  • Page 34
    ...de Bogota - DC (57) (1) 623 7886 United Kingdom Computer Associates Plc Computer Associates House 183/187 Bath Road Slough - Berkshire SL-14AA (44) (1753) 577 733 Israel C.A. Computer Associates Israel Ltd. Debora Hanevia Street Neva Sharet, Atidim Tel Aviv 61580 (972) (3) 6481120 Poland Computer...

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    One Computer Associates Plaza Islandia, New York 11788-7000 www.cai.com