"Customers are cautious with their technology spending and they're looking for a return on every dollar they invest in IT," interim CEO Ken Cron said Thursday in a statement. CEO Jeff Clarke characterized the company's lowering of second-half expectations as a "modest" reduction.
For the fiscal year 2005, which ends on March 31, 2005, the software vendor is projecting revenue in the range of $3.4 billion to $3.5 billion, down from the prior guidance of $3.5 billion to $3.7 billion. Earnings are expected to be 25 to 30 cents per share, down from 28 to 33 cents. Operating income is projected at 70 to 75 cents per share, down from earlier expectations of 73 to 78 cents.
For the first quarter of 2005, ended June 30, CA reported revenue of $860 million, up 9% from $786 million in the same quarter a year ago, and $10 million more than the high-end guidance the company had given on July 8.
Net income for the first quarter was $53 million, compared with $8 million a year ago. GAAP earnings for the quarter were 9 cents, compared to 1 cent a year ago. On a fully diluted operating basis, excluding acquisition amortization and $5 million related to a shareholder litigation settlement, earnings were 21 cents per share, compared with 14 cents in the year-ago quarter 2004.
For the second quarter, the company expects revenue in the range of $830 million to $850 million, and earnings of 3 to 5 cents.