CORRECT: CA 2Q Profit Rose 1.8% On Higher North American Sales

CA Inc.'s (CA) fiscal second-quarter profit rose 1.8% as the business software maker reported higher revenue in North America, which more than offset lower international sales and a 10% increase in expenses.

For the quarter ended Sept. 30, CA posted a profit of $222 million, or 43 cents a share, up from $218 million, or 41 cents a share, a year earlier. Excluding restructuring and other impacts, earnings from continuing operations rose to 49 cents from 45 cents as revenue grew 4% to $1.11 billion.

Analysts polled by Thomson Reuters expected adjusted earnings of 47 cents on revenue of $1.1 billion.

The business-software maker reported higher revenue in North America, which more than offset lower international sales and a 10% increase in expenses.

Results for CA, a maker of software for mainframe and other corporate computers, were resilient during the downturn as the company cut costs to match revenue. Demand has since been improving of late.

Operating margin narrowed to 27.7% from 31.8% as costs grew.

Revenue in North America increased 8.2%, while it fell 1.8% internationally.

Bookings increased 9%, and improved 10% on a constant-currency basis, mostly due to new distributed product sales.

Shares of CA, which maintained its targets for the year excluding currency changes, rose 0.1% to $21.79 in after-hours trading. Its share price is down about 3% this year.

CA, based in Islandia, N.Y., is one of the "big four" companies--including International Business Machines Corp. (IBM), BMC Software Inc. (BMC) and Hewlett-Packard Co. (HPQ)--that makes IT-management tools to help corporate computer systems run more efficiently.

-By Jeanette Borzo and John Kell, Dow Jones Newswires; 415 765 8230; jeanette.borzo@dowjones.com and 212-416-2480; john.kell@dowjones.com

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