CA Profit Tumbles as Revenue Falls Again

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 [e-mail]

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