Transferred CA boss denies scaling back

By PETER GRIFFIN

Computer Associates managing director Richard Collins is to join the company's Sydney headquarters.

Collins rejected speculation that his transfer indicates a scaling back of the New Zealand business, or that a lack of sizeable contracts had left him twiddling his thumbs.

The former Oracle channel manager said he would juggle his managing director's role with overseeing Computer Associates' BrightStor storage product range for the whole region.

Tony Armfield, last month made northern regional sales manager, would run day-to-day operations and report to Collins.

"The staff in New Zealand are very experienced. Much of the sales force has been there for at least 2 1/2 years," said Collins, who earned a salary of more that $368,000 in the company's 2001 financial year.

New Zealand "was a very tight market [last] year", he said, although good progress had been made against major competitors.

Collins declined to give a growth figure for the financial year just ended, any indication of when the New Zealand business would become profitable or what proportion of revenue came from channel partners such as Datacom and gen-i.

Computer Associates' annual report for the 2001 year showed a loss of about $3.8 million on revenue of more than $14 million.

The bottom line was hit by a transfer payment of $14.3 million to the parent company, comprising software royalties of more than $4 million, administration and distribution services.

Collins said the firm had 256 customers in New Zealand, including TransPower, Fonterra, Fisher & Paykel, National Bank, ANZ and WestpacTrust.

The company employed 36 people and had avoided major staff culls, losing just two marketing people last October.

Australian managing director John Ruthven, attending Computer Associates World in Orlando, Florida, with Collins, said Computer Associates Australia contributed about 2 per cent of global turnover. New Zealand delivered a fraction of that.

Ruthven acknowledged that revenue growth from the core enterprise and infrastructure management business was slowing, and the emphasis had shifted to security products (eTrust) and the BrightStor range.

He said work on tenders was being carried out with the Australian Government, after the company secured a A$30 million ($36 million) contract with Australian Customs.

One sizeable Government tender would involve the New Zealand Government as well.