By Maria Armental
CA Inc.'s third-quarter profit fell 4% as the company reported
its 11th straight quarter of a year-over-year decline in
revenue.
For the year ending in March, the company raised its per-share
profit projection from continuing operations, which excludes
currency fluctuations and one-time items. It now expects a decline
between 14% and 17%, compared with its earlier view of 18% to 20%.
It affirmed its revenue projection.
"Looking ahead, while we do not expect fiscal 2016 total revenue
to grow in constant currency, we believe we are on track to
achieving our medium-term goals," Chief Executive Mike Gregoire
said in a statement.
Formerly known as Computer Associates, CA, also known as CA
Technologies, makes software for mainframe computers and other
hardware.
The Islandia, N.Y., company has been shedding noncore businesses
to focus operations on core areas: management cloud, DevOps
(application development and operations) and security.
For the period ended Dec. 31, CA reported a profit of $222
million, or 50 cents a share, down from $232 million, or 51 cents a
share, a year earlier. Excluding stock-based compensation and other
items, profit from continuing operations fell to 67 cents, from 81
cents a year earlier.
Revenue decreased 3% to $1.09 billion, on losses across segments
and driven by a decrease in subscription and maintenance
revenue.
Analysts surveyed by Thomson Reuters expected profit of 60 cents
and revenue of $1.09 billion.
Bookings--projected revenue based on orders or contracts--fell
32% to $1.07 billion, while total revenue backlog fell 11% to $6.69
billion.
Shares, largely flat in recent after-hours trading, closed at
$31.67 Tuesday.
Through the closing, the company's stock has fallen 8% over the
past 12 months.
Write to Maria Armental at maria.armental@wsj.com
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