CA's Profit Falls as Revenue Decline Continues

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 [e-mail]

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