ISLANDIA (dpa-AFX) - Information technology management software maker CA Technologies (CA) said Tuesday after the markets closed that its fourth quarter profit rose 15% from last year, helped mainly by lower lower income tax expenses even as revenue declined 3%.
The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. However, the company gave a down-beat outlook for the current fiscal year.
'While we were able to achieve GAAP and non-GAAP diluted earnings growth for the year, we know we can do better to drive new sales and revenue performance,' said Mike Gregoire, CA Technologies chief executive officer.
CA shares are currently losing 4.93% in after hours trading after closing the day's regular trading session at $27.77, up 10 cents. The shares trade in a 52-week range of $21.48 to $27.94.
For the fourth quarter ended March 31, 2013, the Islandia, New York-based company reported net income of $242 million or $0.53 per share, compared to $211 million or $0.45 per share for the year-ago quarter.
The latest quarter results include an impairment charge of $55 million, or $0.11 per share, related to purchased software products.
Excluding items, adjusted net income for the fourth quarter was $310 million or $0.68 per share, compared to $264 million or $0.56 per share in the prior year quarter.
On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.55 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Revenue for the fourth quarter fell 3% to $1.15 billion from $1.19 billion in the same quarter last year. Eleven analysts had a consensus revenue estimate of $1.14 billion for the fourth quarter.
North America revenue fell 3% to $724 million, while international revenue also fell 3% to $427 million.
For the fourth quarter, mainframe solutions revenue declined 1%, while enterprise solutions revenue fell 7% but services revenue rose 6% from a year ago.
Total revenue backlog at the end of the fourth quarter was $7.774 billion, down 8% from a year earlier.
Fourth quarter bookings totaled $1.463 billion, down 5% from last year.
During the fourth quarter, CA got a new chief executive officer in Michael Gregoire. He replaced the 70-year old William McCracken, who had served as the company's CEO since January 2010.
Looking forward to fiscal year 2014, the company forecast revenue of $4.43 billion to $4.52 billion, earnings of $1.48 to $1.56 per share and adjusted earnings of $2.35 to $2.43 per share. Analysts currently expect the company to earn $2.42 per share on revenue of $4.63 billion for the fiscal year 2014.
The company also said that it would be taking a charge of about $150 million in fiscal year 2014 to rebalance its resources to better align with its business priorities. The company said the charge would cover the termination of about 1,200 employees worldwide and the consolidation of development sites into centralized development hubs. A majority of the personnel actions are expected to be completed by the end of the first quarter of fiscal year 2014.
CA said it expects to backfill a majority of the positions over the next 12 months with new employees with skills that will enable the Company to better focus its resources on priority products and market segments.
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