Thanks to upbeat earnings reports from ExxonMobile and Starbucks, a very welcome resignation of DaimlerChrylser CEO, and a benign unemployment report, the stock market bolted out to a quick 41-point in the morning, writes Tony Sagami, owner and founder of Harvest Advisors. The bulls, however, couldn’t completely ignore the rise in oil price to almost $60 or a batch of not-so-good earnings news from Computer Associates, Sony, LSI Logic, and Dow Chemical.
Computer Associates announces layoffs...AGAIN. Computer Associates is the fourth largest software company in the world and wants you to believe that everything is hunky dory in its world.
Business is great! Oh, don’t pay any attention to the lay off announcement that will eliminate 5% of our workforce.
That is essentially what Computer Associates had to say about its business when it reported its Q2 results.
Computer Associates is going to chop 800 and result in a restructuring charge of $50 to $75 million. These new layoffs, by the way, are in addition to the 800 cuts announced last September.
You know how else I can tell that Computer Associates is having problems? Its quarterly bookings -- a key measure of current demand -- dropped by a whopping 30% last quarter to $415 million.
CEO John Swainson even admitted that its future includes even more bumps and curves.
“There have been, and will continue to be, a number of significant but necessary transitions at CA.