CA Inc. (CA) said its fiscal fourth-quarter profit fell 56% as
the company suffered its eighth straight quarterly decline in
revenue.
The results, however, topped analysts' expectations.
For the new fiscal year, CA said it expected adjusted per-share
earnings of $2.45 to $2.52, with revenue in the range of $4.43
billion to $4.49 billion. Analysts polled by Thomson Reuters had
projected earnings of $2.56 a share and revenue of $4.47
billion.
The company also said its board had approved a $1 billion
share-buyback program, which it expects to complete in about three
years.
CA--once known as Computer Associates--makes software for
mainframe computers and other hardware. In response to recent
struggles in the industry, CA looked to bolster its marketing and
streamline its business.
"We concluded a year of significant transformation and strategic
progress on our journey to build CA for growth and market
leadership," Chief Executive Mike Gregoire said in a release. "We
have successfully executed our rebalancing program, consolidated
development resources in key hubs, shifted innovation investment to
new growth markets, and renewed our focus on building and
delivering excellent, differentiated solutions to our
customers."
For the quarter ended March 31, CA posted earnings of $107
million, or 24 cents a share, down from $242 million, or 53 cents a
share, a year earlier. Excluding tax rate adjustments and other
items, adjusted per-share earnings fell to 61 cents from 67
cents.
Revenue declined 3.1% to $1.11 billion.
Analysts surveyed by Thomson Reuters had expected earnings of 58
cents a share and revenue of $1.09 billion.
Bookings fell 15% to $1.24 billion.
Subscription and maintenance revenue, the company's biggest
topline contributor, fell 2.2% to $925 million. The company's
much-smaller revenue drivers--professional services and software
fees--also declined in the quarter.
Write to Michael Calia at michael.calia@wsj.com
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