CA sees little short-term crisis impact | Special Coverage | Reuters

CA sees little short-term crisis impact | Special Coverage | Reuters

By Jim Finkle

BOSTON (Reuters) - CA Inc (CA.O: Quote, Profile, Research, Stock Buzz) Chief Executive John Swainson said he expects the financial crisis to have little impact on the business software maker's results over the short term because 80 percent of its revenue comes from long-term contracts.

"I'll never say never, but I don't think we'll see a lot of short-term impact," he said in an interview on Friday. "How much this impacts us as a business will depend on how long this lasts."

He declined to comment on results for the company's most-recent quarter, ended September 30, saying the software maker is in a quiet period.

The Islandia, New York-based company, whose products help manage computer networks at some of the world's largest corporations, sells its software as a service through contracts that customers must renew every three years.

Swainson said that business model helps insulate it from the impact of sudden changes in the economy.

That means results don't suddenly take a hit when the economy weakens and growth doesn't pick up when it starts to accelerate, he said.

But the company's growth is affected by long-term movements of the economy. "In the longer term, I don't know how (the financial crisis) will impact us," Swainson said in the interview.

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so for long time scale, whether it could get the contract from companies like China airline will be critical.