- Increases Dividend to $1.02 per share
in FY17
- Accelerates Stock Repurchase
Program
- Announces Additional $750M Stock
Repurchase Authorization
- Increases FY16 EPS by Approximately
$0.03 GAAP and $0.04 non-GAAP
CA Technologies (NASDAQ:CA) announced today that it intends to
increase the dividend per share in Fiscal Year 2017, subject to
quarterly board approval, to $1.02 per share for the year, or
$0.255 per share on a quarterly basis. This is up from the current
$1.00 per share annual dividend, or $0.25 per share on a quarterly
basis.
The company has accelerated its Common Stock Repurchase Program,
having agreed to repurchase 22 million shares of its Common Stock
from Careal Holding AG, its largest shareholder, in a private
transaction valued at $590 million (with an effective share
repurchase price of $26.81 per share).
The per share purchase price represents a 3% discount to the
10-trading day volume weighted average price for CA stock using a
reference date of November 5, 2015. The closing price of CA stock
on November 17, 2015 was $26.90. The transaction, which is expected
to close in the third quarter of Fiscal Year 2016, will be funded
from US cash on hand.
Careal Holding AG has disclosed that Martin Haefner, one of
Careal’s co-principals, will obtain approximately 37 million shares
of CA common stock from Careal to add to his personal investment
holdings.
This deal effectively concludes CA’s prior $1 billion stock
repurchase program, through which CA had repurchased approximately
11 million shares as of September 30, 2015. As a result, as part of
the company’s capital allocation strategy, CA’s board of directors
has authorized a new $750 million share repurchase program.
The impact of the accelerated share repurchase is expected to
benefit GAAP EPS by $0.03 and non-GAAP EPS by $0.04 in FY16.
“Our capital allocation strategy, which includes a new $750
million share buy-back authorization as well as an increasing
dividend, reflects our improved confidence in our business as we
look to the coming years,” said Rich Beckert, CFO, CA Technologies.
“The transaction with Careal provided us with the opportunity to
accelerate our share repurchase program at favorable prices, and
highlights our long-term strategy of returning capital to
shareholders.”
Careal used CA's share buyback program as an opportunity to
rebalance Careal’s assets as part of an overall reallocation.
Careal issued a statement today that “Careal Holding AG and its
shareholders remain the principal shareholders of CA Technologies…
they believe that CA Technologies will continue to grow and intend
to keep hold of their investments for the long term.”
About CA Technologies
CA Technologies (NASDAQ: CA) creates software that fuels
transformation for companies and enables them to seize the
opportunities of the application economy. Software is at the heart
of every business in every industry. From planning, to development,
to management and security, CA is working with companies worldwide
to change the way we live, transact, and communicate - across
mobile, private and public cloud, distributed and mainframe
environments. Learn more at www.ca.com.
Follow CA Technologies
- Twitter
- Social Media Page
- Press Releases
- Blogs
Non-GAAP Financial Measures
This news release includes certain financial measures that
exclude the impact of certain items and therefore have not been
calculated in accordance with U.S. generally accepted accounting
principles (GAAP). Non-GAAP metrics for diluted earnings per share
exclude the following items: share-based compensation expense;
non-cash amortization of purchased software and other intangible
assets; charges relating to rebalancing initiatives that are large
enough to require approval from the Company's Board of Directors,
and certain other gains and losses. The Company began expensing
costs for internally developed software where development efforts
commenced in the first quarter of fiscal 2014. Due to this change,
the Company also adds back capitalized internal software costs and
excludes amortization of internally developed software costs
previously capitalized from these non-GAAP metrics. These non-GAAP
financial measures may be different from non-GAAP financial
measures used by other companies. Non-GAAP financial measures
should not be considered as a substitute for, or superior to,
measures of financial performance prepared in accordance with GAAP.
By excluding these items, non-GAAP financial measures facilitate
management's internal comparisons to the Company's historical
operating results and cash flows, to competitors' operating results
and cash flows, and to estimates made by securities analysts.
Management uses these non-GAAP financial measures internally to
evaluate its performance and they are key variables in determining
management incentive compensation. The Company believes these
non-GAAP financial measures are useful to investors in allowing for
greater transparency of supplemental information used by management
in its financial and operational decision-making. In addition, the
Company has historically reported similar non-GAAP financial
measures to its investors and believes that the inclusion of
comparative numbers provides consistency in its financial
reporting.
Cautionary Statement Regarding Forward-Looking
Statements
The declaration and payment of future dividends is subject to
the determination of the Company's Board of Directors, in its sole
discretion, after considering various factors, including the
Company's financial condition, historical and forecast operating
results, and available cash flow, as well as any applicable laws
and contractual covenants and any other relevant factors. The
Company's practice regarding payment of dividends may be modified
at any time and from time to time.
Repurchases under the Company's stock repurchase program may be
made from time to time, subject to market conditions and other
factors, in the open market, through solicited or unsolicited
privately negotiated transactions or otherwise. The program does
not obligate the Company to acquire any particular amount of common
stock, and it may be modified or suspended at any time at the
Company's discretion. Certain statements in this communication
(such as statements containing the words "believes," "plans,"
"anticipates," "expects," "estimates," "targets" and similar
expressions relating to the future) constitute "forward-looking
statements" that are based upon the beliefs of, and assumptions
made by, the Company's management, as well as information currently
available to management. These forward-looking statements reflect
the Company's current views with respect to future events and are
subject to certain risks, uncertainties, and assumptions. A number
of important factors could cause actual results or events to differ
materially from those indicated by such forward-looking statements,
including: the ability to achieve success in the Company's strategy
by, among other things, enabling the Company's sales force to
accelerate growth of new product sales (at levels sufficient to
offset any decline in revenue in the Company's Mainframe Solutions
segment), improving the Company's brand, technology and innovation
awareness in the marketplace, ensuring the Company's offerings for
cloud computing, application development and IT operations
(DevOps), Software-as-a-Service (SaaS), and mobile device
management, as well as other new offerings, address the needs of a
rapidly changing market, while not adversely affecting the demand
for the Company's traditional products or its profitability to an
extent greater than anticipated, and effectively managing the
strategic shift in the Company's business model to develop more
easily installed software, provide additional SaaS offerings and
refocus the Company's professional services and education
engagements on those engagements that are connected to new product
sales, without affecting the Company's performance to an extent
greater than anticipated; the failure to innovate or adapt to
technological changes and introduce new software products and
services in a timely manner; competition in product and service
offerings and pricing; the ability of the Company's products to
remain compatible with ever-changing operating environments,
platforms or third party products; global economic factors or
political events beyond the Company's control and other business
and legal risks associated with non-U.S. operations; the failure to
expand partner programs; the ability to retain and attract
qualified professionals; general economic conditions and credit
constraints, or unfavorable economic conditions in a particular
region, industry or business sector; the ability to successfully
integrate acquired companies and products into the Company's
existing business; risks associated with sales to government
customers; breaches of the Company's data center, network, as well
as the Company's software products, and the IT environments of the
Company's vendors and customers; the ability to adequately manage,
evolve and protect the Company's information systems,
infrastructure and processes; fluctuations in foreign exchange
rates; discovery of errors or omissions in the Company's software
products or documentation and potential product liability claims;
the failure to protect the Company's intellectual property rights
and source code; the failure to renew large license transactions on
a satisfactory basis; access to software licensed from third
parties; risks associated with the use of software from open source
code sources; third-party claims of intellectual property
infringement or royalty payments; fluctuations in the number, terms
and duration of the Company's license agreements, as well as the
timing of orders from customers and channel partners; events or
circumstances that would require the Company to record an
impairment charge relating to the Company's goodwill or capitalized
software and other intangible assets balances; potential tax
liabilities; changes in market conditions or the Company's credit
ratings; the failure to effectively execute the Company's workforce
reductions, workforce rebalancing and facilities consolidations;
successful and secure outsourcing of various functions to third
parties; changes in generally accepted accounting principles; and
other factors described more fully in the Company's filings with
the Securities and Exchange Commission. Should one or more of these
risks or uncertainties occur, or should the Company's assumptions
prove incorrect, actual results may vary materially from those
described herein as believed, planned, anticipated, expected,
estimated, targeted or similarly expressed in a forward-looking
manner. The Company assumes no obligation to update the information
in this communication, except as otherwise required by law. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof.
Copyright © 2015 CA, Inc. All Rights Reserved. All other
trademarks, trade names, service marks, and logos referenced herein
belong to their respective companies.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151118005438/en/
CA TechnologiesSaswato Das, (646) 710 6690 – US ETCorporate
CommunicationsSaswato.Das@ca.comorTraci Tsuchiguchi, (650) 534 9814
– US PTInvestor RelationsTraci.Tsuchiguchi@ca.com
Xtrackers California Mun... (NASDAQ:CA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Xtrackers California Mun... (NASDAQ:CA)
Historical Stock Chart
From Apr 2023 to Apr 2024
