ISLANDIA, N.Y., Oct. 26, 2011 /PRNewswire/ -- CA Technologies
(Nasdaq: CA) today reported financial results for its second
quarter of fiscal year 2012, ended Sept 30,
2011.
- Revenue $1.2 Billion,
Up 5 Percent in Constant Currency and 10 Percent as
Reported
- GAAP EPS $0.47, Down 7
Percent in Constant Currency and Up 9 Percent as Reported
- Non-GAAP EPS $0.51, Down 1
Percent in Constant Currency and Up 6 Percent as Reported
- GAAP and Non-GAAP EPS Results Include a $0.06 Impact from Previously Announced Workforce
Reduction
- Cash Flow from Operations $190
Million, Up 37 Percent in Constant Currency and 47 percent
as Reported
- Updates Full Year Outlook
FINANCIAL OVERVIEW
Note: All financial results have been adjusted to
reflect discontinued operations.
|
|
|
|
Second
Quarter FY12 vs. FY11
|
|
|
(in millions, except share
data)
|
|
FY12
|
FY11
|
%
Change
|
%
Change
CC**
|
|
|
Revenue
|
|
$1,200
|
$1,088
|
10%
|
5%
|
|
|
GAAP Net Income from continuing
operations
|
|
$236
|
$219
|
8%
|
(24%)
|
|
|
Non-GAAP Net Income from
continuing operations*
|
|
$255
|
$248
|
3%
|
(8%)
|
|
|
GAAP Diluted EPS from continuing
operations
|
|
$0.47
|
$0.43
|
9%
|
(7%)
|
|
|
Non-GAAP Diluted EPS from
continuing operations*
|
|
$0.51
|
$0.48
|
6%
|
(1%)
|
|
|
Cash Flow from continuing
operations
|
|
$190
|
$129
|
47%
|
37%
|
|
|
* Non-GAAP income and earnings
per share are non-GAAP financial measures, as noted in
the
discussion of non-GAAP results
below. A reconciliation of non-GAAP financial measures to
their
comparable GAAP financial
measures is included in the tables following this news
release.
**CC: Constant
Currency
|
|
|
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|
EXECUTIVE COMMENTARY
"We achieved our objectives for earnings per share, cash and
margin for the second quarter," said Bill
McCracken, chief executive officer, CA Technologies.
"However, we were not pleased with one area, new product sales,
relative to our expectations. As a result, we have revised
our revenue outlook to reflect the shortfall in new product sales
and the macroeconomic environment. But we also have raised
the bottom end of our earnings per share guidance to reflect
continued operational efficiency and discipline.
"In the second half of the 2012 fiscal year, we will focus on
improving new product sales by expanding our product penetration,
improving execution in EMEA and driving consistent performance in
our acquired companies. We remain convinced that our
strategic direction and supporting investments are the right ones,
and are confident that we will meet our revised outlook. We
also are mindful of making the right choices to maximize
shareholder returns and will continue to return cash through stock
repurchases and dividends."
REVENUE AND BOOKINGS
During the second quarter, the Company saw demand for its
security management solutions, along with mainframe capacity.
Just over 3 percentage points of revenue growth in constant
currency and 8 percentage points as reported were driven by organic
products, while 2 percentage points in constant currency and 2
percentage points as reported came from the products and
services from the acquisitions of Base Technologies,
Hyperformix, Inc., Torokina, ITKO and Arcot Systems, Inc.
About 61 percent of the Company's revenue came from
North America, while 39 percent
came from international operations.
Revenue year-over-year:
- Total revenue was $1.2 billion,
up 5 percent in constant currency and 10 percent as reported.
- Total revenue backlog was $8.07
billion, up 4 percent in constant currency and as reported.
The current portion of revenue backlog was $3.55 billion, up 3 percent in constant currency
and 4 percent as reported.
- North America revenue was
$735 million, up 10 percent in
constant currency and 11 percent as reported.
- International revenue was $465
million, down 1 percent in constant currency and up 10
percent as reported.
Bookings year-over-year:
- Total bookings in the second quarter were $972 million, down 4 percent in constant currency
and 3 percent as reported.
- The Company signed a total of 10 license agreements with
contract values in excess of $10
million each, for an aggregate contract value of
$321 million. During the second
quarter of fiscal year 2011, the Company signed a total of 14
license agreements with contract values in excess of $10 million each, for an aggregate contract value
of $361 million.
- The weighted average duration of subscription and maintenance
bookings for the quarter was 3.59 years, compared with 3.47 years
for the same period in fiscal year 2011.
- North America bookings were
$664 million, flat in constant
currency and as reported.
- International bookings were $308
million, down 11 percent in constant currency and 8 percent
as reported.
EXPENSES AND MARGIN
Year-over-year GAAP results:
- Operating expenses, before interest and income taxes, were
$867 million, up 11 percent in
constant currency and 10 percent as reported.
- Operating income, before interest and income taxes, was
$333 million, down 6 percent in
constant currency and up 10 percent as reported.
- Operating margin was 28 percent, flat with the prior year
period.
Year-over-year non-GAAP results, which exclude purchased
software and intangibles amortization, pre-fiscal year 2010
restructuring costs, and certain other gains and losses (including
recoveries and certain costs associated with derivative litigation
matters and share-based compensation expense), and which include
gains and losses on hedges that mature within the quarter, but
which exclude gains and losses on hedges that do not mature within
the quarter:
- Operating expenses, before interest and income taxes, were
$822 million, up 12 percent in
constant currency and up 17 percent as reported.
- Operating income, before interest and income taxes, was
$378 million, down 7 percent in
constant currency and 2 percent as reported.
- Operating margin was 32 percent, down 3 percentage points from
the prior year period.
For the second quarter of fiscal year 2012, the Company's
effective GAAP tax rate was 27.8 percent, compared to 24.5 percent
in the prior year. The Company's effective non-GAAP tax rate
was 31.5 percent, compared to 33.3 percent in the prior year.
GAAP and non-GAAP EPS were unfavorably affected by $44 million in costs, or about $0.06 per share on a GAAP and Non-GAAP basis,
associated with a planned workforce reduction of approximately 400
positions announced during the quarter. The effects of the
expenses incurred by the workforce reduction were offset by revenue
growth, positive currency fluctuations, a reduced share count and
lower interest costs.
SEGMENT INFORMATION
Beginning in the first quarter of fiscal year 2012, CA
Technologies began reporting segment results in three areas:
Mainframe Solutions, Enterprise Solutions and Services.
- Mainframe Solutions revenue was $655
million, up 2 percent in constant currency and 7 percent as
reported. Operating expense was $308
million and operating profit was $347
million. Operating margin was 53 percent, down from 57
percent a year ago. Excluding the effects of the costs of the
workforce reduction, Mainframe Solutions operating margin would
have been 56 percent.
- Enterprise Solutions revenue was $449
million, up 9 percent in constant currency and 14 percent as
reported. Operating expense was $422
million and operating profit was $27
million. Operating margin was 6 percent, down from 8
percent a year ago. Excluding the effects of the costs of the
workforce reduction, Enterprise Solutions operating margin would
have been 10 percent.
- Services revenue was $96 million,
up 16 percent in constant currency and 22 percent as reported.
Operating expense was $92
million and operating profit was $4
million. Operating margin was 4 percent, up from 3
percent a year ago. Excluding the effects of the costs of the
workforce reduction, Services operating margin would have been 5
percent.
CASH FLOW FROM CONTINUING OPERATIONS
Cash flow from continuing operations in the second quarter was
$190 million, compared to
$129 million in the prior year.
Cash flow was favorably affected by improved collections,
especially in North America, and
lower cash taxes. In addition, cash flow was unfavorably affected
by higher disbursements, primarily driven to higher payroll
resulting from acquisitions and increased commission expense.
CAPITAL STRUCTURE
- Cash, cash equivalents and marketable securities at
Sept. 30, 2011 were $2.38 billion.
- With $1.31 billion in total debt
outstanding and approximately $60
million in notional pooling, the Company's net cash, cash
equivalents and marketable securities position was $1.01 billion.
- In the second quarter, the Company repurchased approximately
9.7 million shares of stock, for approximately $200 million and distributed about $25 million in dividends.
- The Company's outstanding share count at Sept. 30, 2011 was 489 million.
BUSINESS HIGHLIGHTS
During the second quarter the Company announced:
- The appointment of Marco
Comastri as president, Europe, Middle
East and Africa (EMEA).
Comastri joins CA Technologies with an outstanding track record in
the IT industry, having helped drive growth at such companies as
Microsoft, IBM and, most recently, Poste
Italiane.
- The availability of 10 new and updated products and solutions
that advance the Company's strategy for enabling cloud-connected
enterprises and helping customers realize the business value of
agility.
- The completion of the acquisitions of privately-held
Interactive TKO, Inc. (ITKO) and Watchmouse B.V. (WatchMouse). The
acquisitions expand the breadth of solutions CA Technologies offers
enterprises and service providers for using and providing cloud
computing to rapidly deliver business services.
- The availability of CA Mainframe Application Tuner, which
combines two application performance management (APM) tools with
new integration capabilities to help IT organizations proactively
pinpoint and resolve performance issues that could reduce user
productivity and consume extra system resources.
- The appointment of Jens Alder to
its Board of Directors. Alder currently serves as chairman of
Sanitas Krankenversicherung, one of Switzerland's largest
health insurers and RTX Telecom A/S, a telecommunications component
and handset producer based in Denmark.
OUTLOOK FOR FISCAL YEAR 2012
The Company adjusted its outlook for fiscal year 2012. The
following guidance represents "forward-looking statements" (as
defined below).
The Company expects the following:
- Total revenue growth updated to a range of 5 percent to 6
percent in constant currency, compared to the previous outlook of 6
percent to 8 percent. At Sept. 30,
2011 exchange rates, this translates to reported revenue of
$4.7 billion to $4.8 billion.
- GAAP diluted earnings per share growth updated to a range of 6
percent to 9 percent in constant currency, compared to the previous
outlook of 5 percent to 9 percent. At Sept. 30, 2011 exchange rates, this translates to
reported diluted earnings per share of $1.78
to $1.83.
- Non-GAAP diluted earnings per share growth updated to a range
of 7 percent to 10 percent in constant currency, compared to the
previous outlook of 6 percent to 10 percent. At Sept. 30, 2011 exchange rates, this translates to
reported non-GAAP diluted earnings per share of $2.13 to $2.18.
- Cash flow from operations growth continues in a range of 3
percent to 5 percent in constant currency. At Sept. 30, 2011 exchange rates, this translates to
reported cash flow from operations of $1.44
billion to $1.47 billion.
The Company expects a full-year GAAP operating margin of 28
percent and non-GAAP operating margin of 34 percent. The
Company also expects a full-year GAAP and non-GAAP tax rate in a
range of 31 to 32 percent. The Company anticipates
approximately 478 million shares outstanding at fiscal year 2012
year-end and weighted average diluted shares outstanding of
approximately 491 million for the fiscal year.
Webcast
This news release and the accompanying tables should be read in
conjunction with additional content that is available on the
Company's website, including a supplemental financial package, as
well as a webcast that the Company will host at 5 p.m. ET today to discuss its unaudited second
quarter results. The webcast will be archived on the website.
Individuals can access the webcast, as well as this press release
and supplemental financial information, at http://ca.com/invest or
listen to the call at 1-877-561-2748. The international
participant number is 1-720-545-0044.
(Logo:
http://photos.prnewswire.com/prnh/20100516/NY05617LOGO)
About CA Technologies
CA Technologies (NASDAQ: CA) is an IT management software and
solutions company with expertise across all IT environments – from
mainframe and distributed, to virtual and cloud. CA
Technologies manages and secures IT environments and enables
customers to deliver more flexible IT services. CA
Technologies innovative products and services provide the insight
and control essential for IT organizations to power business
agility. The majority of the Global Fortune 500 relies on CA
Technologies to manage evolving IT ecosystems. For additional
information, visit CA Technologies at www.ca.com.
Follow CA Technologies
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- Social Media Page
- Press Releases
- Podcasts
Non-GAAP Financial Measures
This news release, the accompanying tables and the additional
content that is available on the Company's website, including a
supplemental financial package, includes certain financial measures
that exclude the impact of certain items and therefore have not
been calculated in accordance with U.S. generally accepted
accounting principles (GAAP). Non-GAAP metrics for operating
expenses, operating income, operating margin, income from
operations and diluted earnings per share exclude the following
items: non-cash amortization of purchased software and other
intangibles, share-based compensation, pre-fiscal year 2010
restructuring and certain other gains and losses, which includes
recoveries and certain costs associated with derivative litigation
matters and includes the gains and losses since inception of hedges
that mature within the quarter, but exclude gains and losses of
hedges that do not mature within the quarter. Prior to fiscal
year 2011, non-GAAP income also excludes the interest on
convertible bonds. The effective tax rate on GAAP and
non-GAAP income from operations is the Company's provision for
income taxes expressed as a percentage of pre-tax GAAP and non-GAAP
income from operations, respectively. Such tax rates are
determined based on an estimated effective full year tax rate, with
the effective tax rate for GAAP generally including the impact of
discrete items in the period such items arise and the effective tax
rate for non-GAAP income generally allocating the impact of
discrete items pro rata to the fiscal year's remaining reporting
periods. Non-GAAP adjusted cash flow excludes pre-fiscal 2010
restructuring and other payments. Free cash flow excludes
capital expenditures. We present constant currency information to
provide a framework for assessing how our underlying businesses
performed excluding the effect of foreign currency rate
fluctuations. To present this information, current and
comparative prior period results for entities reporting in
currencies other than US dollars are converted into US dollars at
the exchange rate in effect on March 31,
2011, which was the last day of our prior fiscal year.
Constant currency excludes the impacts from the Company's hedging
program. The constant currency calculation for annualized
subscription and maintenance bookings is calculated by dividing the
subscription and maintenance bookings in constant currency by the
weighted average subscription and maintenance duration in years.
These non-GAAP financial measures may be different from
non-GAAP financial measures used by other companies. Non-GAAP
financial measures should not be considered as a substitute for, or
superior to, measures of financial performance prepared in
accordance with GAAP. By excluding these items, non-GAAP
financial measures facilitate management's internal comparisons to
the Company's historical operating results and cash flows, to
competitors' operating results and cash flows, and to estimates
made by securities analysts. Management uses these non-GAAP
financial measures internally to evaluate its performance and they
are key variables in determining management incentive compensation.
The Company believes these non-GAAP financial measures are
useful to investors in allowing for greater transparency of
supplemental information used by management in its financial and
operational decision-making. In addition, the Company has
historically reported similar non-GAAP financial measures to its
investors and believes that the inclusion of comparative numbers
provides consistency in its financial reporting. Investors
are encouraged to review the reconciliation of the non-GAAP
financial measures used in this news release to their most directly
comparable GAAP financial measures, which are attached to this news
release.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this communication (such as statements
containing the words "believes," "plans," "anticipates," "expects,"
"estimates" and similar expressions) constitute "forward-looking
statements" that are based upon the beliefs of, and assumptions
made by, the Company's management, as well as information currently
available to management. These forward-looking statements
reflect the Company's current views with respect to future events
and are subject to certain risks, uncertainties, and assumptions.
A number of important factors could cause actual results or
events to differ materially from those indicated by such
forward-looking statements, including: the ability to achieve
success in the Company's strategy by, among other things,
increasing sales in new and emerging enterprises and markets,
enabling the sales force to sell new products, improving the
Company's brand in the marketplace and ensuring the Company's set
of cloud computing, Software-as-a-Service and other new
offerings address the needs of a rapidly changing market, while not
adversely affecting the demand for the Company's traditional
products or its profitability; global economic factors or political
events beyond the Company's control; general economic conditions
and credit constraints, or unfavorable economic conditions in a
particular region, industry or business sector; failure to expand
partner programs; the ability to adequately manage and evolve
financial reporting and managerial systems and processes; the
ability to integrate acquired companies and products into existing
businesses; competition in product and service offerings and
pricing; the ability to retain and attract qualified key personnel;
the ability to adapt to rapid technological and market changes; the
ability of the Company's products to remain compatible with
ever-changing operating environments; access to software licensed
from third parties; use of software from open source code sources;
discovery of errors in the Company's software and potential product
liability claims; significant amounts of debt and possible future
credit rating changes; the failure to protect the Company's
intellectual property rights and source code; fluctuations in the
number, terms and duration of our license agreements as well as the
timing of orders from customers and channel partners; reliance upon
large transactions with customers; risks associated with sales to
government customers; breaches of the Company's software products
and the Company's and customers' data centers and IT environments;
third-party claims of intellectual property infringement or royalty
payments; fluctuations in foreign currencies; failure to
effectively execute the Company's workforce reductions; successful
outsourcing of various functions to third parties; potential tax
liabilities; and other factors described more fully in the
Company's filings with the Securities and Exchange
Commission. The Company assumes no obligation to update the
information in this communication, except as otherwise required by
law. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date
hereof.
Copyright © 2011 CA, Inc. All Rights Reserved. One CA Plaza,
Islandia, N.Y. 11749. All other trademarks, trade names,
service marks, and logos referenced herein belong to their
respective companies.
Contacts:
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Dan Kaferle
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Kelsey Doherty
|
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Public Relations
|
Investor Relations
|
|
|
(631) 342-2111
|
(212) 415-6844
|
|
|
daniel.kaferle@ca.com
|
kelsey.doherty@ca.com
|
|
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|
Table
1
|
|
CA
Technologies
|
|
Condensed
Consolidated Statements of Operations
|
|
(in
millions, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
Revenue
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Subscription and maintenance
revenue
|
$1,022
|
|
$ 939
|
|
$2,029
|
|
$1,878
|
|
|
Professional services
|
96
|
|
79
|
|
186
|
|
157
|
|
|
Software fees and
other
|
82
|
|
70
|
|
148
|
|
122
|
|
|
Total revenue
|
1,200
|
|
1,088
|
|
2,363
|
|
2,157
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Costs of licensing and
maintenance
|
71
|
|
66
|
|
138
|
|
133
|
|
|
Cost of professional
services
|
91
|
|
75
|
|
179
|
|
146
|
|
|
Amortization of capitalized
software costs
|
55
|
|
47
|
|
105
|
|
92
|
|
|
Selling and marketing
|
370
|
|
300
|
|
696
|
|
590
|
|
|
General and
administrative
|
104
|
|
113
|
|
218
|
|
230
|
|
|
Product development and
enhancements
|
140
|
|
125
|
|
258
|
|
253
|
|
|
Depreciation and amortization of
other intangible assets
|
43
|
|
45
|
|
90
|
|
89
|
|
|
Other (gains) expenses,
net
|
(7)
|
|
15
|
|
4
|
|
1
|
|
|
Total expenses before interest
and income taxes
|
867
|
|
786
|
|
1,688
|
|
1,534
|
|
|
Income from continuing
operations before interest and income taxes
|
333
|
|
302
|
|
675
|
|
623
|
|
|
Interest expense, net
|
6
|
|
12
|
|
15
|
|
25
|
|
|
Income from continuing
operations before income taxes
|
327
|
|
290
|
|
660
|
|
598
|
|
|
Income tax expense
|
91
|
|
71
|
|
196
|
|
158
|
|
|
Income from continuing
operations
|
$ 236
|
|
$ 219
|
|
$ 464
|
|
$ 440
|
|
|
Income (loss) from discontinued
operations, net of income taxes
|
-
|
|
3
|
|
13
|
|
(1)
|
|
|
Net income
|
$ 236
|
|
$ 222
|
|
$ 477
|
|
$ 439
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per
share
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 0.47
|
|
$0.43
|
|
$ 0.92
|
|
$ 0.85
|
|
|
Income (loss) from discontinued
operations
|
-
|
|
-
|
|
0.03
|
|
-
|
|
|
Net Income
|
$ 0.47
|
|
$0.43
|
|
$ 0.95
|
|
$ 0.85
|
|
|
Basic weighted average shares
used in computation
|
493
|
|
507
|
|
497
|
|
508
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per
share
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$ 0.47
|
|
$0.43
|
|
$ 0.92
|
|
$ 0.85
|
|
|
Income (loss) from discontinued
operations
|
-
|
|
-
|
|
0.03
|
|
-
|
|
|
Net Income
|
$ 0.47
|
|
$0.43
|
|
$ 0.95
|
|
$ 0.85
|
|
|
Diluted weighted average shares
used in computation
|
494
|
|
508
|
|
498
|
|
509
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior year results have been
adjusted to reflect the discontinued operations associated with the
sale of the Information Governance business and the Internet
Security business.
|
|
|
|
|
|
|
|
|
|
|
|
Table
2
|
|
|
CA
Technologies
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
(in
millions)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
March
31,
|
|
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
2,203
|
|
$ 3,049
|
|
|
Marketable securities-
current
|
89
|
|
75
|
|
|
Trade and installment accounts
receivable, net
|
601
|
|
849
|
|
|
Deferred income taxes -
current
|
132
|
|
246
|
|
|
Other current assets
|
189
|
|
152
|
|
|
|
|
|
|
|
|
Total current
assets
|
3,214
|
|
4,371
|
|
|
|
|
|
|
|
|
Marketable securities -
noncurrent
|
90
|
|
104
|
|
|
Property and equipment,
net
|
398
|
|
437
|
|
|
Goodwill
|
5,885
|
|
5,688
|
|
|
Capitalized software and other
intangible assets, net
|
1,407
|
|
1,284
|
|
|
Deferred income taxes -
noncurrent
|
197
|
|
284
|
|
|
Other noncurrent assets,
net
|
271
|
|
246
|
|
|
|
|
|
|
|
|
Total assets
|
$
11,462
|
|
$ 12,414
|
|
|
|
|
|
|
|
|
Current portion of long-term
debt and loans payable
|
$
18
|
|
$
269
|
|
|
Deferred revenue (billed or
collected) - current
|
2,175
|
|
2,600
|
|
|
Deferred income taxes -
current
|
64
|
|
68
|
|
|
Other current
liabilities
|
788
|
|
987
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
3,045
|
|
3,924
|
|
|
|
|
|
|
|
|
Long-term debt, net of current
portion
|
1,292
|
|
1,282
|
|
|
Deferred income taxes -
noncurrent
|
63
|
|
64
|
|
|
Deferred revenue (billed or
collected) - noncurrent
|
863
|
|
969
|
|
|
Other noncurrent
liabilities
|
532
|
|
555
|
|
|
|
|
|
|
|
|
Total liabilities
|
5,795
|
|
6,794
|
|
|
|
|
|
|
|
|
Common stock
|
59
|
|
59
|
|
|
Additional paid-in
capital
|
3,575
|
|
3,615
|
|
|
Retained earnings
|
4,532
|
|
4,106
|
|
|
Accumulated other comprehensive
loss
|
(133)
|
|
(65)
|
|
|
Treasury stock
|
(2,366)
|
|
(2,095)
|
|
|
|
|
|
|
|
|
Total stockholders’
equity
|
5,667
|
|
5,620
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity
|
$
11,462
|
|
$ 12,414
|
|
|
|
|
|
|
Table
3
|
|
CA
Technologies
|
|
Condensed
Consolidated Statements of Cash Flows
|
|
(in
millions)
|
|
(unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
|
|
2011
|
|
2010
|
|
|
OPERATING ACTIVITIES FROM
CONTINUING OPERATIONS:
|
|
|
|
|
|
Net
income
|
$ 236
|
|
$ 222
|
|
|
Income from discontinued operations
|
-
|
|
(3)
|
|
|
Income from continuing operations
|
236
|
|
219
|
|
|
Adjustments to reconcile income from continuing operations to
net cash provided
|
|
|
|
|
|
by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
98
|
|
92
|
|
|
Provision for deferred
income taxes
|
52
|
|
71
|
|
|
Provision for bad
debts
|
-
|
|
2
|
|
|
Share-based compensation
expense
|
16
|
|
21
|
|
|
Asset impairments and
other non-cash items
|
7
|
|
(6)
|
|
|
Foreign currency
transaction (gains) losses
|
(3)
|
|
2
|
|
|
Changes in other operating assets and liabilities, net of
effect of acquisitions:
|
|
|
|
|
|
Increase in trade and
installment accounts receivable, net
|
(19)
|
|
(47)
|
|
|
Decrease in deferred
revenue
|
(269)
|
|
(203)
|
|
|
Increase (decrease) in
taxes payable, net
|
26
|
|
(33)
|
|
|
Increase (decrease) in
accounts payable, accrued expenses and other
|
16
|
|
(1)
|
|
|
Increase in accrued
salaries, wages and commissions
|
63
|
|
26
|
|
|
Changes in other operating
assets and liabilities
|
(33)
|
|
(14)
|
|
|
NET CASH PROVIDED BY OPERATING
ACTIVITIES - CONTINUING OPERATIONS
|
190
|
|
129
|
|
|
INVESTING ACTIVITIES FROM
CONTINUING OPERATIONS:
|
|
|
|
|
|
Acquisitions of businesses, net of cash acquired, and purchased
software
|
(340)
|
|
(19)
|
|
|
Purchases of property and equipment
|
(21)
|
|
(22)
|
|
|
Cash
proceeds from divestiture of assets
|
7
|
|
10
|
|
|
Capitalized software development costs
|
(46)
|
|
(31)
|
|
|
Investment in marketable securities, net
|
7
|
|
-
|
|
|
NET CASH USED IN INVESTING
ACTIVITIES - CONTINUING OPERATIONS
|
(393)
|
|
(62)
|
|
|
FINANCING ACTIVITIES FROM
CONTINUING OPERATIONS:
|
|
|
|
|
|
Dividends paid
|
(25)
|
|
(20)
|
|
|
Purchases of common stock
|
(200)
|
|
(100)
|
|
|
Debt
repayments, net
|
(5)
|
|
(4)
|
|
|
Exercise of common stock options and other
|
2
|
|
-
|
|
|
NET CASH USED IN FINANCING
ACTIVITIES - CONTINUING OPERATIONS
|
(228)
|
|
(124)
|
|
|
NET CHANGE IN CASH AND CASH
EQUIVALENTS BEFORE EFFECT OF EXCHANGE RATE CHANGES ON CASH -
CONTINUING OPERATIONS
|
(431)
|
|
(57)
|
|
|
Effect of exchange rate changes
on cash
|
(122)
|
|
105
|
|
|
CASH (USED) PROVIDED BY
OPERATING ACTIVITIES - DISCONTINUED OPERATIONS
|
(5)
|
|
1
|
|
|
NET EFFECT OF DISCONTINUED
OPERATIONS ON CASH AND CASH EQUIVALENTS
|
(5)
|
|
1
|
|
|
(DECREASE) INCREASE IN CASH AND
CASH EQUIVALENTS
|
(558)
|
|
49
|
|
|
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD
|
2,761
|
|
2,476
|
|
|
CASH AND CASH EQUIVALENTS AT END
OF PERIOD
|
$2,203
|
|
$2,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior year results have
been adjusted to reflect the discontinued operations associated
with the sale of the Information Governance business and the
Internet Security business.
|
|
|
|
|
|
|
Table
4
|
|
CA
Technologies
|
|
Operating
Segments
|
|
(in
millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30, 2011
|
|
Six Months
Ended September 30, 2011
|
|
|
|
Mainframe
Solutions (1)
|
|
Enterprise
Solutions (1)
|
|
Services
(1)
|
|
Total
|
|
Mainframe
Solutions (1)
|
|
Enterprise
Solutions (1)
|
|
Services
(1)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (2)
|
$
655
|
|
$
449
|
|
$
96
|
|
$1,200
|
|
$ 1,301
|
|
$
876
|
|
$
186
|
|
$2,363
|
|
|
Expenses (3)
|
308
|
|
422
|
|
92
|
|
822
|
|
584
|
|
804
|
|
180
|
|
1,568
|
|
|
Segment profit
|
$
347
|
|
$
27
|
|
$
4
|
|
$ 378
|
|
$
717
|
|
$
72
|
|
$
6
|
|
$ 795
|
|
|
Segment operating
margin
|
53%
|
|
6%
|
|
4%
|
|
32%
|
|
55%
|
|
8%
|
|
3%
|
|
34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
|
|
|
|
|
|
$ 378
|
|
|
|
|
|
|
|
$ 795
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased software
|
|
|
|
|
|
$ 26
|
|
|
|
|
|
|
|
$ 49
|
|
|
Amortization of
other intangible assets
|
|
|
|
|
|
|
$ 15
|
|
|
|
|
|
|
|
$ 34
|
|
|
Share-based
compensation expense
|
|
|
|
|
|
$ 16
|
|
|
|
|
|
|
|
$ 41
|
|
|
Other unallocated
operating (gains) expenses, net
|
|
|
|
|
|
$ (12)
|
|
|
|
|
|
|
|
$
(4)
|
|
|
Interest expense,
net
|
|
|
|
|
|
$
6
|
|
|
|
|
|
|
|
$ 15
|
|
|
Income from continuing
operations before income taxes
|
|
|
$ 327
|
|
|
|
|
|
|
|
$ 660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30, 2010
|
|
Six Months
Ended September 30, 2010
|
|
|
|
Mainframe
Solutions (1)
|
|
Enterprise
Solutions (1)
|
|
Services
(1)
|
|
Total
|
|
Mainframe
Solutions (1)
|
|
Enterprise
Solutions (1)
|
|
Services
(1)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (2)
|
$
615
|
|
$
394
|
|
$
79
|
|
$1,088
|
|
$ 1,230
|
|
$
770
|
|
$
157
|
|
$2,157
|
|
|
Expenses (3)
|
265
|
|
362
|
|
77
|
|
704
|
|
545
|
|
713
|
|
151
|
|
1,409
|
|
|
Segment profit
|
$
350
|
|
$
32
|
|
$
2
|
|
$ 384
|
|
$
685
|
|
$
57
|
|
$
6
|
|
$ 748
|
|
|
Segment operating
margin
|
57%
|
|
8%
|
|
3%
|
|
35%
|
|
56%
|
|
7%
|
|
4%
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
|
|
|
|
|
|
$ 384
|
|
|
|
|
|
|
|
$ 748
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased software
|
|
|
|
|
|
$ 22
|
|
|
|
|
|
|
|
$ 44
|
|
|
Amortization of
other intangible assets
|
|
|
|
|
|
|
$ 17
|
|
|
|
|
|
|
|
$ 33
|
|
|
Share-based
compensation expense
|
|
|
|
|
|
$ 21
|
|
|
|
|
|
|
|
$ 40
|
|
|
Other unallocated
operating (gains) expenses, net
|
|
|
|
|
|
$ 22
|
|
|
|
|
|
|
|
$
8
|
|
|
Interest expense,
net
|
|
|
|
|
|
$ 12
|
|
|
|
|
|
|
|
$ 25
|
|
|
Income from continuing
operations before income taxes
|
|
|
$ 290
|
|
|
|
|
|
|
|
$ 598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) -- Mainframe Solutions
– Our Mainframe Solutions segment addresses the mainframe market
and is focused on making significant investments in order to be
innovative in key management disciplines across our broad portfolio
of products. Ongoing development is guided by customer needs,
our cross-enterprise management philosophy and our Mainframe 2.0
strategy, which offers management capabilities designed to appeal
to the next generation of mainframe staff while also offering
productivity improvements to today’s mainframe experts. Our
mainframe business assists customers by addressing three major
challenges: lowering costs, providing high service levels by
sustaining critical workforce skills and increasing agility to help
deliver on business goals.
-- Enterprise Solutions – Our
Enterprise Solutions segment includes products that operate on
non-mainframe platforms, such as service assurance, security
(identity and access management), project and portfolio management,
service management, virtualization and service automation, SaaS,
and cloud offerings. Our offerings help customers address
their regulatory compliance demands, privacy needs, and internal
security policies. Enterprise Solutions also focuses on delivering
growth to the Company in the form of new customer acquisitions and
revenue, while leveraging non-traditional routes-to-market and
delivery models.
-- Services – Our Services
segment offers implementation, consulting, education and training
services to customers, which is intended to promote a seamless
customer experience and to increase the value that customers
realize from our solutions.
|
|
|
|
(2) We regularly enter
into a single arrangement with a customer that includes Mainframe
Solutions segment software products, Enterprise Solutions segment
software products and Services. The amount of contract
revenue assigned to segments is generally based on the manner in
which the proposal is made to the customer. The software
product revenue is assigned to the Mainframe Solutions and
Enterprise Solutions segments based on either: (1) a list price
allocation method (which allocates a discount in the total contract
price to the individual products in proportion to the list price of
the product); (2) allocations included within internal contract
approval documents; or (3) the value for individual software
products as stated in the customer contract. The price for
the implementation, consulting, education and training services is
separately stated in the contract and these amounts of contract
revenue are assigned to the Services segment. The contract
value assigned to each segment is then recognized in a manner
consistent with the revenue recognition policies we apply to the
customer contract for purposes of preparing the Condensed
Consolidated Financial Statements.
|
|
|
|
(3) Segment expenses
include costs that are controllable by segment managers (i.e.,
direct costs) and, in the case of the Mainframe Solutions and
Enterprise Solutions segments, an allocation of shared and indirect
costs (i.e., allocated costs). Segment-specific direct costs
include a portion of selling and marketing costs, licensing and
maintenance costs, product development costs, general and
administrative costs and amortization of the cost of internally
developed software. Allocated segment costs primarily
include indirect selling and marketing costs and general and
administrative costs that are not directly attributable to a
specific segment. The basis for allocating shared and
indirect costs between the Mainframe Solutions and Enterprise
Solutions segments is dependent on the nature of the cost being
allocated and is either in proportion to segment revenues or in
proportion to the related direct cost category. Expenses for
the Services segment consist only of direct costs and there are no
allocated or indirect costs for the Services segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
5
|
|
CA
Technologies
|
|
Constant
Currency Summary
|
|
(in
millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
|
|
2011
|
|
2010
|
|
%
Increase
(Decrease) in $
US
|
|
%
Increase
(Decrease) in
Constant Currency (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
$ 972
|
|
$ 1,001
|
|
(3%)
|
|
(4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
North America
|
$ 735
|
|
$ 664
|
|
11%
|
|
10%
|
|
|
International
|
465
|
|
424
|
|
10%
|
|
(1%)
|
|
|
Total revenue
|
$ 1,200
|
|
$ 1,088
|
|
10%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Subscription and
maintenance
|
$ 1,022
|
|
$ 939
|
|
9%
|
|
4%
|
|
|
Professional
services
|
96
|
|
79
|
|
22%
|
|
16%
|
|
|
Software fees and
other
|
82
|
|
70
|
|
17%
|
|
15%
|
|
|
Total revenue
|
$ 1,200
|
|
$ 1,088
|
|
10%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenue:
|
|
|
|
|
|
|
|
|
|
Mainframe
Solutions
|
$ 655
|
|
$ 615
|
|
7%
|
|
2%
|
|
|
Enterprise
Solutions
|
449
|
|
394
|
|
14%
|
|
9%
|
|
|
Services
|
96
|
|
79
|
|
22%
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses before interest
and income taxes:
|
|
|
|
|
|
|
|
|
|
Total Non-GAAP
(2)
|
$ 822
|
|
$ 704
|
|
17%
|
|
12%
|
|
|
Total GAAP
|
$ 867
|
|
$ 786
|
|
10%
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended September 30,
|
|
|
|
2011
|
|
2010
|
|
%
Increase
(Decrease) in $
US
|
|
%
Increase
(Decrease) in
Constant Currency (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
$ 1,837
|
|
$ 1,733
|
|
6%
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
North America
|
$ 1,451
|
|
$ 1,319
|
|
10%
|
|
10%
|
|
|
International
|
912
|
|
838
|
|
9%
|
|
(2%)
|
|
|
Total revenue
|
$ 2,363
|
|
$ 2,157
|
|
10%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Subscription and
maintenance
|
$ 2,029
|
|
$ 1,878
|
|
8%
|
|
3%
|
|
|
Professional
services
|
186
|
|
157
|
|
18%
|
|
13%
|
|
|
Software fees and
other
|
148
|
|
122
|
|
21%
|
|
19%
|
|
|
Total revenue
|
$ 2,363
|
|
$ 2,157
|
|
10%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenue:
|
|
|
|
|
|
|
|
|
|
Mainframe
Solutions
|
$ 1,301
|
|
$ 1,230
|
|
6%
|
|
1%
|
|
|
Enterprise
Solutions
|
876
|
|
770
|
|
14%
|
|
9%
|
|
|
Services
|
186
|
|
157
|
|
18%
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses before interest
and income taxes:
|
|
|
|
|
|
|
|
|
|
Total Non-GAAP
(2)
|
$ 1,568
|
|
$ 1,409
|
|
11%
|
|
10%
|
|
|
Total GAAP
|
$ 1,688
|
|
$ 1,534
|
|
10%
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
(1) Constant currency
information is presented to provide a framework to assess how the
underlying businesses performed excluding the effect of foreign
currency rate fluctuations. To present this information,
current and comparative prior period results for entities reporting
in currencies other than US dollars are converted into US dollars
at the exchange rate in effect on March 31, 2011, which was the
last day of fiscal year 2011. Constant currency excludes the
impacts from the Company's hedging program.
|
|
|
|
(2) Refer to Table 7 for a
reconciliation of total expenses before interest and income taxes
to total non-GAAP operating expenses.
|
|
|
|
Prior year results have
been adjusted to reflect the discontinued operations associated
with the sale of the Information Governance business and the
Internet Security business.
|
|
Certain non-material
differences may arise versus actual from impact of rounding.
|
|
|
|
|
|
|
|
|
|
|
Table
6
|
|
CA
Technologies
|
|
Reconciliation of Select GAAP
Measures to Non-GAAP Measures
|
|
(in
millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
September
30,
2011
|
|
September
30,
2010
|
|
September
30,
2011
|
|
September
30,
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
$236
|
|
$
222
|
|
$477
|
|
$
439
|
|
|
GAAP Income (loss) from
discontinued operations, net of taxes
|
-
|
|
3
|
|
13
|
|
(1)
|
|
|
GAAP income from continuing
operations
|
236
|
|
219
|
|
464
|
|
440
|
|
|
GAAP income tax
expense
|
91
|
|
71
|
|
196
|
|
158
|
|
|
GAAP interest expense
|
6
|
|
12
|
|
15
|
|
25
|
|
|
GAAP Income from continuing
operations before interest and income taxes
|
333
|
|
302
|
|
675
|
|
623
|
|
|
GAAP operating margin (% of
revenue) (1)
|
28%
|
|
28%
|
|
29%
|
|
29%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments to
expenses:
|
|
|
|
|
|
|
|
|
|
Costs of licensing and
maintenance(2)
|
1
|
|
1
|
|
1
|
|
2
|
|
|
Cost of professional
services(2)
|
1
|
|
1
|
|
2
|
|
2
|
|
|
Amortization of
capitalized software costs(3)
|
26
|
|
22
|
|
49
|
|
44
|
|
|
Selling and
marketing(2)
|
6
|
|
8
|
|
17
|
|
15
|
|
|
General and
administrative(2)
|
4
|
|
6
|
|
12
|
|
10
|
|
|
Product development and
enhancements(2)
|
4
|
|
5
|
|
9
|
|
11
|
|
|
Depreciation and
amortization of other intangible assets(4)
|
15
|
|
17
|
|
34
|
|
33
|
|
|
Other (gains) losses, net
(5)
|
(12)
|
|
21
|
|
(5)
|
|
7
|
|
|
Restructuring and other
(6)
|
-
|
|
1
|
|
1
|
|
1
|
|
|
Total Non-GAAP adjustment to
operating expenses
|
45
|
|
82
|
|
120
|
|
125
|
|
|
Non-GAAP Income from continuing
operations before interest and income taxes
|
378
|
|
384
|
|
795
|
|
748
|
|
|
Non-GAAP operating margin (% of
revenue) (7)
|
32%
|
|
35%
|
|
34%
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Interest expense,
net
|
6
|
|
12
|
|
15
|
|
25
|
|
|
Non-GAAP adjustment to Interest
expense
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Non-GAAP interest
expense
|
6
|
|
12
|
|
15
|
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Income tax
expense
|
91
|
|
71
|
|
196
|
|
158
|
|
|
Non-GAAP adjustment to income
tax expense(8)
|
26
|
|
53
|
|
50
|
|
84
|
|
|
Non-GAAP income tax
expense
|
117
|
|
124
|
|
246
|
|
242
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Income from continuing
operations
|
$255
|
|
$
248
|
|
$534
|
|
$
481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) GAAP operating margin
is calculated by dividing GAAP Income from continuing operations
before interest and income taxes by total revenue (refer to Table 1
for total revenue).
|
|
|
|
(2) Non-GAAP adjustment
consists of share-based compensation.
|
|
|
|
(3) Non-GAAP adjustment
consists of purchased software amortization.
|
|
|
|
(4) Non-GAAP adjustment
consists of intangibles amortization.
|
|
|
|
(5) Consists of gains and
losses since inception of hedges that mature within the quarter,
but exclude gains and losses of hedges that do not mature within
the quarter.
|
|
|
|
(6) Non-GAAP adjustment
consists of Fiscal 2007 Restructuring Plan expense adjustments.
|
|
|
|
(7) Non-GAAP operating
margin is calculated by dividing non-GAAP income from continuing
operations before interest and income taxes by total revenue (refer
Table 1 for total revenue).
|
|
|
|
(8) The full year non-GAAP
income tax expense is different from GAAP income tax expense
because of the difference in non-GAAP income from continuing
operations (before tax). On an interim basis this difference would
also include a difference in the impact of discrete and permanent
items where for GAAP purposes the effect is recorded in the period
such items arise, but for non-GAAP such items are recorded pro rata
to the fiscal year's remaining reporting periods.
|
|
|
|
Refer to the discussion of
non-GAAP financial measures included in the accompanying press
release for additional information.
|
|
|
|
Prior year results have
been adjusted to reflect the discontinued operations associated
with the sale of the Information Governance business and the
Internet Security business.
|
|
|
|
Certain non-material
differences may arise versus actual from impact of rounding.
|
|
|
|
|
|
|
|
|
|
|
|
Table
7
|
|
CA
Technologies
|
|
Reconciliation of GAAP to
Non-GAAP
|
|
Operating
Expenses and Diluted Earnings per Share
|
|
(in
millions, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
Operating Expenses
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses before interest
and income taxes
|
$ 867
|
|
$ 786
|
|
$1,688
|
|
$1,534
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
adjustments:
|
|
|
|
|
|
|
|
|
|
Purchased software
amortization
|
26
|
|
22
|
|
49
|
|
44
|
|
|
Intangibles
amortization
|
15
|
|
17
|
|
34
|
|
33
|
|
|
Share-based
compensation
|
16
|
|
21
|
|
41
|
|
40
|
|
|
Restructuring and other
(1)
|
-
|
|
1
|
|
1
|
|
1
|
|
|
Hedging (gains),
net (2)
|
(12)
|
|
21
|
|
(5)
|
|
7
|
|
|
Total non-GAAP operating
adjustments
|
45
|
|
82
|
|
120
|
|
125
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP operating
expenses
|
$ 822
|
|
$ 704
|
|
$1,568
|
|
$1,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
Diluted EPS from Continuing
Operations
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted EPS from continuing
operations
|
$0.47
|
|
$0.43
|
|
$ 0.92
|
|
$ 0.85
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments, net of
taxes
|
|
|
|
|
|
|
|
|
|
Purchased software and
intangibles amortization
|
0.06
|
|
0.05
|
|
0.12
|
|
0.10
|
|
|
Share-based
compensation
|
0.02
|
|
0.03
|
|
0.05
|
|
0.06
|
|
|
Restructuring and other
(1)
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Hedging (gains), net
(2)
|
(0.01)
|
|
0.03
|
|
-
|
|
0.01
|
|
|
Non-GAAP effective tax
rate adjustments (3)
|
(0.03)
|
|
(0.06)
|
|
(0.03)
|
|
(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted EPS from
continuing operations
|
$0.51
|
|
$0.48
|
|
$ 1.06
|
|
$ 0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP adjustment
consists of Fiscal 2007 Restructuring Plan expense adjustments.
|
|
|
|
(2) Consists of gains and
losses since inception of hedges that mature within the quarter,
but exclude gains and losses of hedges that do not mature within
the quarter.
|
|
|
|
(3) The effective tax rate
on non-GAAP income from continuing operations is the Company's
provision for income taxes expressed as a percentage of non-GAAP
income from continuing operations before income taxes. Such
tax rates are determined based on an estimated effective full year
tax rate after the adjustments for the impacts of certain discrete
items (such as changes in tax rates, reconciliations of tax returns
to tax provisions and resolutions of tax contingencies).
|
|
|
|
Refer to the discussion of
non-GAAP financial measures included in the accompanying press
release for additional information.
|
|
|
|
Prior year results have
been adjusted to reflect the discontinued operations associated
with the sale of the Information Governance business and the
Internet Security business.
|
|
|
|
Certain non-material
differences may arise versus actual from impact of rounding.
|
|
|
|
|
|
|
|
|
|
|
Table
8
|
|
CA
Technologies
|
|
Effective
Tax Rate Reconciliation
|
|
GAAP and
Non-GAAP
|
|
(in
millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
September
30, 2011
|
|
September
30, 2011
|
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income taxes (1)
|
$ 327
|
|
$
372
|
|
$ 660
|
|
$
780
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate
|
35%
|
|
35%
|
|
35%
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax at statutory rate
|
114
|
|
130
|
|
231
|
|
273
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for discrete and
permanent items (2)
|
(23)
|
|
(13)
|
|
(35)
|
|
(27)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total tax expense
|
$ 91
|
|
$
117
|
|
$ 196
|
|
$
246
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
(3)
|
27.8%
|
|
31.5%
|
|
29.7%
|
|
31.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
September
30, 2010
|
|
September
30, 2010
|
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income taxes (1)
|
$ 290
|
|
$
372
|
|
$ 598
|
|
$
723
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate
|
35%
|
|
35%
|
|
35%
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax at statutory rate
|
102
|
|
130
|
|
209
|
|
253
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for discrete and
permanent items (2)
|
(31)
|
|
(6)
|
|
(51)
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total tax expense
|
$ 71
|
|
$
124
|
|
$ 158
|
|
$
242
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
(3)
|
24.5%
|
|
33.3%
|
|
26.4%
|
|
33.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Refer to Table 6 for a
reconciliation of income from continuing operations before income
taxes on a GAAP basis to income from continuing operations before
income taxes on a non-GAAP basis.
|
|
|
|
(2) The effective tax rate
for GAAP generally includes the impact of discrete and permanent
items in the period such items arise, whereas the effective tax
rate for non-GAAP generally allocates the impact of such items pro
rata to the fiscal year's remaining reporting periods.
|
|
|
|
(3) The effective tax rate
on GAAP and non-GAAP income from continuing operations is the
Company's provision for income taxes expressed as a percentage of
GAAP and non-GAAP income from continuing operations before income
taxes, respectively. Such tax rates are determined based on
an estimated effective full year tax rate after the adjustments for
the impacts of certain discrete items (such as changes in tax
rates, reconciliations of tax returns to tax provisions and
resolutions of tax contingencies).
|
|
|
|
Refer to the discussion of
non-GAAP financial measures included in the accompanying press
release for additional information.
|
|
|
|
Certain non-material
differences may arise versus actual from impact of rounding.
|
|
|
|
|
|
|
|
|
|
|
|
Table
9
|
|
|
CA
Technologies
|
|
|
Reconciliation of Projected GAAP
Earnings per Share to
|
|
|
Projected
Non-GAAP Earnings per Share
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
Ending
|
|
|
Projected Diluted EPS from
Continuing Operations
|
March 31,
2012
|
|
|
|
|
|
|
|
|
Projected GAAP Diluted EPS From
Continuing Operations Range
|
$
1.78
|
to
|
$1.83
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments, Net of
Taxes:
|
|
|
|
|
|
Purchased Software
and Intangibles Amortization
|
0.23
|
|
0.23
|
|
|
Share-based
Compensation
|
0.12
|
|
0.12
|
|
|
|
|
|
|
|
|
Non-GAAP Projected Diluted EPS
From Continuing Operations Range
|
$
2.13
|
to
|
$2.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refer to the discussion of
non-GAAP financial measures included in the accompanying press
release for additional information.
|
|
|
|
|
|
|
Table
10
|
|
CA
Technologies
|
|
Workforce
Reduction - Summary of Adjustment by Line Item
|
|
(in
millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September
30, 2011
|
|
|
|
|
|
|
Expenses
|
|
|
|
Costs of licensing and
maintenance
|
$
2
|
|
|
Cost of professional
services
|
1
|
|
|
Selling and marketing
|
27
|
|
|
General and
administrative
|
5
|
|
|
Product development and
enhancements
|
9
|
|
|
Total Adjustment
|
$
44
|
|
|
|
|
Table
11
|
|
CA
Technologies
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Reconciliation of Projected GAAP
Operating Margin to
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Projected
Non-GAAP Operating Margin
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(in
millions)
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(unaudited)
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Fiscal Year
Ending
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March 31,
2012
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Projected GAAP Operating Margin
Range
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28%
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Non-GAAP Adjustments, Net of
Taxes:
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Purchased Software
and Intangibles Amortization
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4%
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Share-based
Compensation
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2%
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Non-GAAP Projected Operating
Margin Range
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34%
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Refer to the discussion of
non-GAAP financial measures included in the accompanying press
release for additional information.
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SOURCE CA Technologies