By Tess Stynes
CA Inc. said its earnings rose 41% due to lower expenses, but
negative currency impacts exacerbated the drop in revenue during
the quarter ended March.
For the fiscal year ending in March 2016, CA forecast per-share
earnings of $2.38 to $2.45 and revenue of $3.95 billion to $3.99
billion. Analysts polled by Thomson Reuters expected per-share
profit of $2.47 and revenue of $4.18 billion.
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, application
development and operations, and security.
Chief Executive Mike Gregoire said CA focused on its strategy,
introduced new products and strengthened relationships with
customers in the fiscal year that ended in March.
"As demonstrated by this quarter's results, however, we still
have work to do to drive the kind of growth that our company has
the potential to achieve," he added.
For quarter, CA reported a profit of $151 million, or 34 cents a
share, up from $107 million, or 24 cents a share, a year earlier.
Excluding items, per-share earnings from continuing operations fell
to 56 cents from 62 cents. Revenue decreased 5.6% to $1.02 billion.
Excluding currency impacts, revenue declined roughly 1%.
Analysts polled by Thomson Reuters expected per-share profit of
50 cents and revenue of $1.04 billion.
Excluding currency impacts, the company's bookings declined 5%,
while backlog dropped 8%.
Write to Tess Stynes at tess.stynes@wsj.com
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