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CA Technologies Reports Second Quarter Fiscal Year 2013 Results

GAAP and non-GAAP earnings per share in the second quarter of fiscal year 2012 were adversely affected by $44 million in costs, or about $0.06 per share, associated with a workforce reduction. GAAP and non-GAAP operating margin in last year’s second quarter also were adversely affected by 3 percentage points each by the workforce reduction.

SEGMENT INFORMATION
  • Mainframe Solutions revenue was $619 million, down 2 percent in constant currency and 5 percent as reported. Operating expense was $247 million and operating profit was $372 million. Operating margin was 60 percent, up from 53 percent a year ago. There was a negative 3 percentage point operating margin impact in the prior period associated with the above-mentioned workforce reduction.
  • Enterprise Solutions revenue was $438 million, up 1 percent in constant currency and down 2 percent as reported. Operating expense was $410 million and operating profit was $28 million. Operating margin was 6 percent, flat from a year ago. There also was a negative 4 percentage point operating margin impact in the prior period associated with the workforce reduction.
  • Services revenue was $95 million, up 3 percent in constant currency and down 1 percent as reported. Operating expense was $89 million and operating profit was $6 million. Operating margin was 6 percent, up from 4 percent a year ago.

CASH FLOW FROM CONTINUING OPERATIONS

Cash flow from continuing operations in the second quarter was $89 million, compared with $190 million in the prior year. The decrease was primarily due to a decrease in cash collections as a result of lower billings.

CAPITAL STRUCTURE
  • Cash, cash equivalents and investments at Sept. 30, 2012 were $2.248 billion.
  • With $1.294 billion in total debt outstanding and a borrowing position of $164 million on the Company’s notional pooling arrangement, the Company’s net cash, cash equivalents and investments were $790 million.
  • During the quarter, the Company repurchased 9.7 million shares in the market for approximately $250 million.
  • The Company is currently authorized to repurchase an additional $654 million of common stock through fiscal year 2014.
  • The Company’s outstanding share count at Sept. 30, 2012 was 454 million.
  • During the quarter, the Company distributed $116 million in dividends.

BUSINESS HIGHLIGHTS

During the second quarter the Company:

***IDC, Worldwide Cloud Systems Management Software 2011 Vendor Shares: Market Moves Beyond Self-Service, Doc #236556 August 2012.

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