ISLANDIA (dpa-AFX) - CA Technologies (CA) Wednesday reported a better-than-expected increase in second-quarter profit, helped mainly by higher subscription and maintenance revenues. Looking ahead to the full year 2012, the company lowered its revenue outlook citing lower demand for new products, while it raised its earnings forecast.
The New York-based IT management software company reported second-quarter net income of $236 million or $0.47 per share, up from $222 million or $0.43 per share last year.
Excluding items, non-GAAP net income from continuing operations was $255 million or $0.51 per share, compared to $248 million or $0.48 per share a year ago.
On average, 13 analysts polled by Thomson Reuters expected earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.
The Islandia, New York-based company reported second quarter revenues of $1.2 billion, up 10 percent from $1.09 billion last year. On a constant currency basis, sales were higher by 5 percent compared to last year. Twelve Wall Street analysts on consensus expected revenues of $1.19 billion for the quarter.
Subscription and maintenance revenue for the quarter rose 9 percent to $1.02 billion, year-over-year.
By geography, North America revenue grew 11 percent to $735 million from last year, and International revenue increased 10 percent to $465 million.
Total bookings in the quarter were $972 million, down 3 percent from last year. Total revenue backlog was up 4 percent to $8.07 billion, while the current portion of the backlog was $3.55 billion, up 3 percent in constant currency and 4 percent as reported.
During the quarter, CA repurchased about 9.7 million shares of stock for about $200 million.
For 2012, the company now expects GAAP earnings per share to grow 6 to 9 percent in constant currency, compared to the previous outlook of 5 to 9 percent. At September 30, 2011 exchange rates, this translates to earnings of $1.78 to $1.83 per share.
Earnings on a non-GAAP basis is estimated to grow 7 to 10 percent in constant currency, compared to the earlier guidance of 6 to 10 percent growth. At September 30, 2011 exchange rates, this amounts to non-GAAP earnings of $2.13 to $2.18 per share.
Total revenue is now anticipated to increase 5 to 6 percent in constant currency, from its prior outlook of 6 to 8 percent. At September 30, 2011 exchange rates, this translates to revenue of $4.7 billion to $4.8 billion.
Analysts currently expect the company to earn $2.17 per share on revenue of $4.84 billion for the fiscal year 2012.
'We achieved our objectives for earnings per share, cash and margin for the second quarter,' said CEO Bill McCracken, chief executive officer, CA Technologies. 'However, we were not pleased with one area, new product sales, relative to our expectations. As a result, we have revised our revenue outlook to reflect the shortfall in new product sales and the macroeconomic environment...'
CA closed Wednesday's regular trade at $22.02, down $0.16 or 0.72%, on a volume of 6.5 million shares on the Nasdaq. In after hours, the stock lost 1.32%.
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