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.
- 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.
- Announced it has been named the market share leader in the worldwide cloud systems management software market by IDC, a leading IT market research and advisory firm***;
- Introduced a new version of CA Infrastructure Management (CA IM), the cornerstone of the Company’s converged infrastructure management solution that enables a superior and differentiated customer experience;
- Announced it has been named as a component of the Dow Jones Sustainability Indexes (DJSI) World Index and North America Index for the second consecutive year: and,
- Introduced an enhanced CA Nimsoft Monitor with advanced network flow analysis, enabling customers to visualize their IP traffic in ways that can assist them in optimizing application service levels.