By Cassandra Jaramillo
Business software company CA Inc. said its first-quarter revenue
fell 8.6%, citing an unfavorable foreign exchange effect of $65
million.
Formerly known as Computer Associates, CA, also known as CA
Technologies, makes software for mainframe computers and other
hardware. It recently bought Rally Software Development Corp. in a
deal valued at about $480 million.
For its 2016 fiscal year, the company adjusted its outlook to
reflect its acquisition of Rally. CA expects adjusted earnings of
$2.37 to $2.44 per share on revenue of $4.04 billion to $4.11
billion. The company had previously forecast per-share earnings of
$2.38 to $2.45 and revenue of $3.95 billion to $3.99 billion.
The Islandia, N.Y., company has shifted its focus on core areas:
management cloud; application development and operations; and
security. Its software helps corporate clients such as banks and
retailers create Web services and mobile apps for their
customers.
For the period ended June 30, CA reported a profit of $212
million, or 48 cents a share, down from $217 million, or 49 cents a
share, a year earlier. Excluding items, per-share earnings fell to
64 cents from 65 cents a year earlier.
Revenue decreased to $977 million from $1.07 billion.
Analysts polled by Thomson Reuters expected per-share profit of
62 cents and revenue of $990.1 million.
The company's bookings, which is projected revenue based on
orders or contracts, declined 9% to $662 million. On a constant
currency basis, bookings declined 3%.
Shares of the company, up 5.7% in the past 12 months, remained
unchanged after hours.
Write to Cassandra Jaramillo at Cassandra.Jaramillo@wsj.com
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