Magazine

Table: Kumar's Challenges


Computer Associates is attempting to get on track, but progress is slow

FINANCIALS

Revenues and profits are improving. But on Feb. 5, Moody's Investors Service said it was reviewing CA's credit rating, since its cash flow is declining.

CUSTOMERS

CA set up a 650-person customer-relations staff in 2000 to please buyers. Only 10% of CA's large customers felt satisfied.

PRODUCTS

CA is forgoing major acquisitions and developing technologies internally. The glitch: R&D dropped 4% last quarter, to $165 million.

CORPORATE GOVERNANCE

The board cut in half the 10-year term of its poison-pill takeover defense. But a search for outside directors hasn't yielded results.


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