The vendor also set second quarter guidance that was slightly below analysts’ expectations, as it rebalanced its assumptions about its ongoing shift to a subscription-based business model.
A rash of enterprise software vendors have released disappointing figures in recent weeks. However, CA said that with customers focusing on getting the best return from their systems, it was better placed than many of its rivals in the enterprise space.
Total revenues for the quarter ending June 30 were $860m, up 9.4%. This generated $82m in operating income before taxes, up from $12m a year ago, and $53m in net income, compared to $8m last year. Earnings per share were $0.09, or $0.18 excluding charges.
Earlier this month, the company warned that it would not make its original revenue target of $865m to $885m, and expected revenues instead to be $830m to $850m. Earnings targets were unchanged. In the event, the company surpassed its earnings target due to tightened expense controls.
However, the edge was taken off its better than expected first quarter performance, when it lowered its outlook for the second quarter. CA now expects revenue in the range of $830m to $850m, with GAAP earnings of $0.03 to $0.05 per share, and non-GAAP earnings of $0.15 to $0.17.
Wall Street currently expects earnings of $0.18 per share on revenues of $866.7m for the second quarter.
For the full year, it expects revenue of $3.4bn to $3.5bn compared to its original range of $3.5bn to $3.7bn. Full year GAAP earnings are expected to be between $0.25 and $0.30, compared to previous guidance of $0.28 to $0.33, with non-GAAP earnings of $0.70 to $0.75, compared to initial guidance of $0.73 to $0.78.
CA executives described the trimming of its forecast as modest. Acting CEO Ken Cron said CA had made the change because it was seeing a slightly different mix of old and new business model deals than it had originally expected.
