Two leading vendors in the IT systems and performance management tools fraternity, CA and Compuware, have released quarterly earnings results and shed light on future plans for their respective product and services strategies.
On Jan. 28, both CA and Compuware announced third-quarter earnings. In addition, CA announced the appointment of William McCracken as its CEO.
"Over the past five months, Bill has helped direct the day-to-day management of CA and has been integral in developing and executing the strategy to position the company for market leadership," said Gary Fernandes, lead independent director at CA, who headed the board search committee, in a statement. "We had the benefit of watching him lead the company and it became evident to us that Bill McCracken has the knowledge, industry expertise and experience to take CA to the next level. The board unanimously decided that Bill was the best choice to sustain the company's momentum and lead it going forward."
McCracken joined CA's Board of Directors in 2005 and became non-executive chairman in 2007. Prior to joining CA, McCracken held numerous executive positions at IBM during his 36-year tenure, most recently as a member of the Chairman's Worldwide Management Council and general manager of IBM's printing division. He previously served as president of IBM's EMEA and Asia PC Company and as general manager of marketing, sales and distribution for IBM PC Company.
"Over the past few months, CA has introduced a number of new and enhanced products in the security, IT management, virtualization and automation spaces and made investments to bolster our cloud computing offerings by acquiring NetQoS and Oblicore," McCracken said. "These moves strengthen our position as a leader in next-generation infrastructure management."
CA's North American revenue was $655 million, up 7 percent in constant currency and 8 percent as reported from the prior year period, while international revenue was $473 million, down 1 percent in constant currency and up 9 percent as reported year-over-year. Overall revenue was $1.13 billion compared to $1.04 billion for the same period a year ago.
During an earnings call with analysts, McCracken said, "Revenue for the period was up, cash flow was strong and we again improved operating margins. Another important indicator, revenue backlog, was up - both total revenue backlog and short term."
Listing CA's highlights for the quarter, McCracken said:
"??Ã First, while still in early stages, we made progress getting our EMEA and Services businesses back on track.??Ã Second, Security - our Identity and Access Management business reported record new product sales.??Ã Third, Clarity - our project and portfolio management solution - had one of its best quarters ever, with more than 40 new customers added in North America alon??Ã Fourth, Mainframe 2.0 and our initiatives designed to change mainframe management continue to drive momentum in the business. Since its introduction in May, mainframe software manager - the first deliverable in the Mainframe 2.0 initiative - has been deployed by more than 150 customers.??Ã And, finally, our application performance management business recorded its strongest quarterly performance ever. CA Wily now manages the world's most mission critical business services, including nine of the world's top 10 banks, the world's top 10 telecoms and the world's top four entertainment companies."
Meanwhile, also reporting its third quarter earnings, Compuware saw software license fees of $52 million compared to $53.1 million (excluding divested products) and $60.5 million (as reported) in the third quarter last year. Maintenance and subscription fees were $117.6 million in the third quarter compared to $108.5 million (excluding divested products) and $116.6 million (as reported) in the third quarter last year. Revenue from professional services in the third quarter was $60.3 million, compared to $91.5 million in the same quarter last year.
"Compuware's third quarter performance featured solid execution against each of our key growth drivers, as well as strong profitability and cash flow," said Compuware President and Chief Operating Officer Bob Paul, in a statement. "Our strategy of streamlining operations and increasing focus on areas where we have industry leadership is working, and Compuware is well-positioned to deliver continued progress in financial performance."