CA Inc. Sees Revenue Fall, Hurt by Currency

   By Cassandra Jaramillo 
 

Business software company CA Inc. said its first-quarter revenue fell 8.6%, citing an unfavorable foreign exchange effect of $65 million.

Formerly known as Computer Associates, CA, also known as CA Technologies, makes software for mainframe computers and other hardware. It recently bought Rally Software Development Corp. in a deal valued at about $480 million.

For its 2016 fiscal year, the company adjusted its outlook to reflect its acquisition of Rally. CA expects adjusted earnings of $2.37 to $2.44 per share on revenue of $4.04 billion to $4.11 billion. The company had previously forecast per-share earnings of $2.38 to $2.45 and revenue of $3.95 billion to $3.99 billion.

The Islandia, N.Y., company has shifted its focus on core areas: management cloud; application development and operations; and security. Its software helps corporate clients such as banks and retailers create Web services and mobile apps for their customers.

For the period ended June 30, CA reported a profit of $212 million, or 48 cents a share, down from $217 million, or 49 cents a share, a year earlier. Excluding items, per-share earnings fell to 64 cents from 65 cents a year earlier.

Revenue decreased to $977 million from $1.07 billion.

Analysts polled by Thomson Reuters expected per-share profit of 62 cents and revenue of $990.1 million.

The company's bookings, which is projected revenue based on orders or contracts, declined 9% to $662 million. On a constant currency basis, bookings declined 3%.

Shares of the company, up 5.7% in the past 12 months, remained unchanged after hours.

Write to Cassandra Jaramillo at [e-mail]

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