CA Earnings Rise Amid Restructuring - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News
News
1/24/2006
05:18 PM
50%
50%

CA Earnings Rise Amid Restructuring

Despite the good news, the process of adapting to a new sales structure that emphasizes selling new CA products instead of re-licensing older ones placed a strain on CA's billings, said CFO Jeff Clarke.

CA nearly doubled earnings in its third quarter thanks in part to cost cuts and a few large contracts, the Islandia, N.Y., vendor said late Tuesday.

The maker of IT management software posted earnings of $56 million during the quarter, or 9 cents a share, on revenue of $967 million. For the same quarter a year ago, CA reported $31 million, or 5 cents a share, on revenue of $917 million.

John Swainson, president and CEO, said he was pleased by the progress CA is making in changing from primarily a mainframe management software vendor to one that sells IT management solutions for today's distributed enterprise IT environments.

"We are continuing to change the DNA of the company," he said.

CA is still in a restructuring mode, and cost cuts by the vendor drove operating expenses for the quarter down by $46 million compared to the same quarter a year ago, the company said.

During the third quarter, two large contracts with an outsourcer were paid in full instead of being paid in annual installments over the life of the contracts. The value of these two contracts contributed an incremental $59 million more to the quarter than if they had been invoiced in annual installments, the company said.

The process of adapting to a new sales structure that emphasizes selling new CA products instead of re-licensing older ones placed a strain on CA's billings, said CFO Jeff Clarke, who said mainframe billings were down 5 percent for the quarter.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Commentary
Why 2021 May Turn Out to be a Great Year for Tech Startups
John Edwards, Technology Journalist & Author,  2/24/2021
News
How GIS Data Can Help Fix Vaccine Distribution
Jessica Davis, Senior Editor, Enterprise Apps,  2/17/2021
Slideshows
11 Ways DevOps Is Evolving
Lisa Morgan, Freelance Writer,  2/18/2021
Register for InformationWeek Newsletters
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll