NEW YORK – Computer Associates International (CA) reported a 7 percent revenue increase in its fourth quarter compared to last year, as it closed the books on a year that was one of the most tumultuous in the software vendor’s nearly thirty-year history.Islandia, New York-based CA ended the fourth quarter with revenue of $910 million, up from last year but short of the $918.6 million consensus forecast of analysts polled by Thomson First Call. CA’s net income for the quarter was $17 million, giving it per-share earnings of $0.20 excluding special charges, in line with analysts’ expectations. CA’s per-share earnings calculation excludes settlement charges, some noncash acquisition costs, restructuring costs, and several tax charges.For the 2005 fiscal year, ended March 31, CA reported net income of $10 million, down from $25 million in the prior year. Revenue was $3.5 billion, up 8 percent from its 2004 fiscal year. The year included $262 million in expenses related to CA’s settlement agreements with shareholders, the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC) stemming from a multibillion-dollar accounting fraud the company perpetrated in its 2000 and 2001 fiscal years. CA prematurely booked more than $2 billion in sales to hide weaker-than-expected quarterly results during those periods. A number of former CA executives have pleaded guilty to civil and criminal charges, while ex-Chief Executive Officer Sanjay Kumar has pleaded not guilty to the fraud and obstruction of justice charges leveled against him. With all of the executives implicated in the fraud now gone, CA has focused this year on rebuilding its executive team. CEO John Swainson assumed the top job in February after several months of training time at CA.The shadows of its past fraud continue to haunt CA. The company said Thursday that its continuing review of its accounting has turned up additional transactions from 1998 through 2001 that were improperly recorded. CA plans to restate its financial reports again, from 1998 through 2005, although it expects its latest round of adjustments to be fairly small — no more than $15 million in any fiscal year since 2002. The restatements will reduce revenue in prior periods by up to $110 million in aggregate, according to CA.CA said the changes will delay its 2005 10-K annual report filing, scheduled for mid-June, but that it will still file the report within the deadlines mandated by the SEC. Swainson used part of his conference call with analysts following CA’s earnings release to emphasize the progress the company has made. “Over the past year, CA has resolved many areas of uncertainty in the business,” he said.Chief Operating Officer Jeff Clarke outlined steps CA has taken to rebuild internally, including its investment in an SAP enterprise resource planning system and its decision last year to cut 800 employees, 5 percent of its workforce. CA expects to save $70 million annually from that reduction, Clarke said.CA has also revamped its sales process to emphasize increasing billings rather than bookings, a shift Swainson said will motivate sales staffers to focus on increasing customers’ value to CA rather than on rebooking and extending contracts. Additionally, it has shifted to a “named account” structure that gives its direct sales force a list of several thousand enterprise customers to focus on, and leaves other customers to channel partners. Software Development