Computer Associates continues turn around with new CFO
Computer Associates, the US management software company that was embroiled in an accounting fraud scandal in 2003, has appointed Robert Davis as its new CFO. He joins after 18 years at rival software company Dell where he was most recently chief accounting officer. Davis replaces Jeff Clarke, who was promoted to chief operating officer soon after his appointment as CFO in April 2004. Clarke said of his successor: ?Bob's in-depth understanding of the financial discipline, rigour and planning necessary to generate success in the technology industry is unique.?
The CFO post at Computer Associates was initially made vacant in October 2003 when Ira Zar was sacked in connection with an investigation involving accounting fraud. The Audit Committee found that a total of $2.2 billion was booked prematurely by quarter within fiscal 2000 and 2001. Zar subsequently pleaded guilty to fraud charges.
In April 2004 the company restated certain financial data in a filing to the SEC. Revenue for the entire fiscal year of 2000 decreased $2 million from $6.094 billion to $6.092 billion, while for 2001 it increased $558 million from $4.190 billion to $4.748 billion.
The company's accounting fraud scandal resulted in the exit of more than a dozen executives, including the CEO.