CA, Inc. (CA), formerly known as Computer Associates International Inc., said Thursday after the markets closed that its second quarter profit rose 8% from last year, as better cost control and lower taxes helped offset a 3% drop in revenue.
The Islandia, New York-based information technology management software company reported GAAP net income for the second quarter of $218 million or $0.41 per share, compared to $202 million or $0.39 per share for the year-ago quarter.
Excluding items, non-GAAP net income for the second quarter was $232 million or $0.42 per share, compared to $219 million or $0.40 per share in the prior year quarter.
On average, 14 analysts polled by Thomson Reuters expected the company to earn $0.40 per share for the second quarter. Analysts' estimates typically exclude special items.
GAAP operating expenses for the quarter fell 6% to $733 million from $777 million a year ago, while non-GAAP operating expenses declined 7% to $705 million from $762 million last year.
Total revenue for the second quarter fell 3% to $1.07 billion from $1.11 billion in the same quarter last year. Second quarter revenue grew 1% in constant currency. Thirteen analysts had a consensus revenue estimate of $1.07 billion for the second quarter.
Second quarter North American revenue grew 2% year-over-year to $628 million, while international revenue dropped 10% to $444 million.
Total bookings in the second quarter fell 37% year-over-year to $947 million. The latest quarter bookings were positively affected by a multi-year contract renewal with a system integrator totaling more than $400 million in North America. North American bookings were down 41%, while international bookings were down 29%.
The company said total bookings were affected by an expected light inventory of scheduled contract renewals in the second quarter, especially in Europe, Middle East and Africa, lower professional services bookings and a continued soft demand for channel products aimed at small and medium size businesses and the consumer market.
During the second quarter, the company signed 18 license agreements with aggregate values greater than $10 million for a total of $366 million, compared with 17 license agreements totaling $892 million in the second quarter of last year.
Total revenue backlog at the end of the second quarter was $7.7 billion, up 10% from a year earlier.
During the quarter, CA signed a definitive agreement to buy privately-held NetQoS Inc., a provider of network performance management and service delivery solutions, for $200 million. CA said the acquisition will extend its capabilities in the areas of application performance management and network and system management.
For the first six months of its fiscal year, the company reported GAAP net income of $413 million or $0.78 per share, compared to $398 million or $0.76 per share for the same period last year.
Non-GAAP net income for the first-half was $461 million or $0.84 per share, compared to $433 million or $0.80 per share in the prior year period.
Total revenue for the first-half declined to $2.12 billion from $2.19 billion in the corresponding year-ago period.
"Our first half performance leaves CA well positioned for the second half of the year," said John Swainson, CA's chief executive officer, who has planed to retire by year-end.
"We are seeing some improvement in the economic climate, especially in North America, and a willingness by customers to discuss strategic projects that will help tightly align their IT and the management of their IT resources with business imperatives," Swainson added.
Looking forward, the company said it now expects total revenue growth for fiscal 2010 to be in the range of 2% to 4% in constant currency, rather than at the high end of the range as previously forecast. At current exchange rates, the 2% to 4% range translates to reported revenue of $4.3 billion to $4.4 billion.
The company now expects fiscal 2010 GAAP earnings per share to increase 18% to 27% in constant currency, compared to its previous forecast of 18% to 26% growth. At current exchange rates, the 18% to 27% range translates to reported GAAP earnings per share of $1.47 to $1.58.
The company also said it now expects fiscal 2010 non-GAAP earnings to increase 6% to 14% in constant currency, compared to its earlier forecast of 6% to 13% growth. At current exchange rates, the 6% to 14% range translates to reported non-GAAP earnings per share of $1.60 to $1.71.
Analysts currently expect the company to earn $1.67 per share on revenue of $4.34 billion for the fiscal year 2010.
CA makes computer software products that manage information technology infrastructures. The company's products are used in both mainframe and in distributed computing environments.
In infrastructure-management software, CA competes with BMC Software Inc. (BMC) and International Business Machines Corp. (IBM), among others.
CA shares, which have traded in a range of $12.00 to $24.15 over the past year, closed Thursday's regular trading session at $23.91, up 48 cents or 2.05%. The stock is currently losing $1.41 or 5.90% in after hours trading.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.