Conservative Treasury, Radical Operations

“CA’s approach is not quick and dirty, however. It is more like quick and briefly noted. Just as Tony insists the company bal- ance its radical operational side with the kind of highly conserva- tive financial structure that in 1991 held $250 million in cash, Charles knows CA’s very informality demands an accurate and completely up-to-the-minute record of what is going on.”

“*Financial comparison of the two giants is an accounting minefield. Microsoft appeared to have pulled ahead in revenues as of 1991, but this included $213 million from sales of hardware. Subtracting the hardware revenues leaves $1.63 billion net. By the same measure and for approximately the same period, CA has characteristically understated its total revenues by choosing not to take into account at least $348 million from companies acquired for cash in 1991. With these included, CA revenues surpassed $1.7 billion.”