ISLANDIA (dpa-AFX) - Application software solutions provider CA Technologies (CA), Thursday reported a lower profit for the second quarter, hurt mainly by lower revenues. CA Technologies' earnings for the quarter were in line with Street estimates, while revenues fell shy of expectations. Moving ahead, the company lowered its earnings and revenue outlook for the full year 2013.
CA Technologies, which competes with rivals such as BMC Software and Hewlett-Packard, said revenues for the quarter declined to $1.15 billion from $1.20 billion last year. Twelve analysts on a consensus estimated revenues of $1.17 billion for the quarter. On a constant currency basis, earnings for the quarter were flat.
Mainframe solutions revenues were down 5 percent to $619 million, while enterprise solutions revenue slipped 2 percent to $438 million. Services revenue were $95 million, down 1 percent.
Revenues from North America dropped 1 percent from last year, while international revenues decreased 9 percent.
Islandia, New York-based CA Technologies' second-quarter profit dropped to $222 million or $0.48 per share from $236 million or $0.47 per share last year.
Adjusted net income from continuing operations for the quarter was $0.59 per share compared to $0.51 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude special items.
Total bookings in the second quarter were $837 million, down 14 percent, due in part to lower enterprise solutions new product sales, mainframe capacity sales and renewals.
Chief Executive Bill McCracken said, 'While we had anticipated that several areas of our business would be down in the second quarter, our new product and capacity sales fell short of our expectations. Our performance was also affected by the weakening global economy, which elongated sales cycles.'
Going forward, CA Technologies lowered its financial guidance for the full year 2013. The company now expects earnings of $1.99 to $2.07 per share, and adjusted earnings of $2.36 to $2.44 per share, on revenues of $4.58 billion to $4.67 billion.
Previously, the company expected earnings of $2.07 to $2.14 per share and adjusted earnings of $2.45 to $2.53 per share, and revenues of $4.85 billion to $4.95 billion.
Analysts currently expects earnings of $2.48 per share on revenues of $4.76 billion for fiscal year 2013.
CA closed Thursday's trading at $24.90, up $0.51 or 2.09%, on a volume of 6.8 million shares, on the Nasdaq. The stock lost $1.05 or 4.22% in after hours trade.
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