Enterprise software provider CA has reported an 8% increase in net income to $218m for the second quarter 2010, compared to net income of $202m in the year-ago quarter. Revenue declined 3% to $1.07bn. Skip related content
Operating income grew 3% to $339m, while diluted EPS rose 5% to $0.41. Total bookings were $947m, while cash flow from operations was $120m. The company signed 18 license agreements with aggregate values greater than $10m for a total of $366m, compared with 17 license agreements totaling $892m in the same period last year. It repurchased about $50m of its common stock during the quarter.
The company said subscription and maintenance revenue declined marginally to $973m, professional services revenue fell 24% to $71m, and software fees and other revenue fell 26% to $28m. Geographically, North America revenue grew 2% to $628m, while revenue from international operations fell 10% to $444m.
During the quarter, CA agreed to acquire privately-held network performance management and service delivery applications provider NetQoS for $200m to expand its application performance management and network and system management capabilities. It also partnered with Acxiom to deliver enterprise-class, on-demand information governance applications.
For the first half, the company reported a 4% increase in net income to $413m compared to a net income of $398m a year ago. Revenue declined 3% to $2.12bn.
John Swainson, chief executive at CA, said: “We grew revenue on a constant currency basis, focused on operational efficiencies that drove bottom line results. We are seeing some improvement in the economic climate, especially in North America, and a willingness by customers to discuss strategic projects that will help align their IT resources with business imperatives. This combined with our enterprise customer pipeline, renewal portfolio and focus on operational efficiencies, will give us a strong second half.”
Looking ahead to fiscal 2010, the company expects revenue between $4.3bn and $4.4bn and diluted EPS between $1.47 and $1.58.
