CA Earnings Skyrocket

CA reports that its second-quarter earnings rose by 153 percent year-to-year on strong sales of security and network management products and its Wily and Clarity lines.

CA's profit soared 153 percent and revenue rose 8 percent year-to-year, the company reported Nov. 1 in an account of its second-quarter 2008 performance.

The software firm continued to put its financial struggles behind it, drawing a net income of $137 million compared with $54 million during the same period in 2006 while revenue rose to $1.067 billion. The quarter ended Sept. 30.

CA's customers displayed continued confidence in CA's ability to deliver during the quarter by penning 16 contract renewals worth over $10 million each for a total of $334 million during the quarter. Total bookings during the quarter were $1.007 billion, which represents a 46 percent increase over the same quarter one year ago, when CA booked $690 million.

"CA has by every measure closed on a strong quarter and we're on our way to finishing the year with top performance. Q2 marks CA's fourth consecutive quarter of solid performance," said CEO John Swainson in the earnings call on Nov. 1. "In all, these results mark a significant milestone in CA's transformation. Our more streamlined sales organization and improved operating structure give us greater confidence in our ability to meet our full-year objectives," he said, in Islandia, N.Y.


With its restructuring and greater efficiency now paying off for CA, Swainson emphasized CA's drive to build "world-class products," saying, "I know we have the talent to do this at CA. Making better products is getting noticed by customers and competitors."

The products that drove much of CA's growth in the quarter were in four areas, Swainson said in the earnings call. "Security did very well, network management did extremely well, Wily [application performance management] did extremely well and Clarity [project and portfolio management] did well. [Those] helped drag a lot of the rest of the portfolio with it," he said.


Read more here about CA's Wily line of application performance management products.

Swainson also hinted about a new data center automation product CA is working on, designed to help customers dynamically provision servers. The project is code-named McKinley, he said.

CA updated its guidance for the full 2008 fiscal year, increasing its total revenue projections to between $4.15 billion and $4.2 billion. Its previous revenue forecast was between $4.05 billion and $4.1 billion. At the same time, CA said it expects earnings per share for the year to range between 87 and 91 cents per share. CA's previous forecast was for earnings to range from 75 to 81 cents a share.


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