ISLANDIA, N.Y., Jan. 25, 2011 /PRNewswire/ --
- Revenue $1.165 Billion, Up
5 Percent in Constant Currency and Up 4 Percent as
Reported
- GAAP EPS $0.39, Down 17
Percent in Constant Currency and Down 20 Percent as
Reported
- Non-GAAP EPS $0.51, Up 11
Percent in Constant Currency and as Reported
- Raises Full Year Guidance for GAAP and non-GAAP EPS and
Increases Revenue Outlook
- Announces Acquisition of Torokina Networks to Extend
Reach in Communication Service Providers (CSP) Market
CA Technologies (Nasdaq: CA) today reported financial results
for its third quarter ended Dec. 31,
2010.
FINANCIAL
OVERVIEW
|
|
|
|
Third
Quarter FY11 vs. FY10
|
|
|
(in millions, except share
data)
|
|
FY11
|
FY10
|
%
Change
|
% Change
CC**
|
|
|
Revenue
|
|
$1,165
|
$1,122
|
4%
|
5%
|
|
|
GAAP Income from Continuing
Operations
|
|
$200
|
$256
|
(22%)
|
(19%)
|
|
|
Non-GAAP Income from Continuing
Operations*
|
|
$260
|
$246
|
6%
|
7%
|
|
|
GAAP Diluted EPS from Continuing
Operations
|
|
$0.39
|
$0.49
|
(20%)
|
(17%)
|
|
|
Non-GAAP Diluted EPS from
Continuing Operations*
|
|
$0.51
|
$0.46
|
11%
|
11%
|
|
|
Cash Flow from
Operations
|
|
$496
|
$342
|
45%
|
45%
|
|
|
|
|
*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
|
|
|
|
|
|
|
|
|
EXECUTIVE COMMENTARY
"CA Technologies delivered another strong quarter thanks to
continued focus on execution and a leading portfolio of solutions
to manage and secure IT infrastructures from the mainframe to cloud
computing environments," said Chief Executive Officer Bill McCracken. "Over the past year, we
have bolstered our product portfolio with the addition of new
technologies from nine acquisitions and combined these acquired
capabilities with our own development to provide customers with the
solutions they need to help manage and secure their IT
environments. This is driving our growth and
establishing the base for growth going forward.
"As we head into the last two months of the fiscal year, we feel
very good about where we are both from a strategic standpoint and
our ability to reach our financial objectives," McCracken
continued. "We continue to focus on accelerating new product
sales, reaching new and emerging enterprise customers, penetrating
growth geographies and leading the technology evolution – the
evolution to virtualization and cloud computing. Finally, the
current portion of revenue backlog, which is a key measure for our
performance going forward, is up 4 percent, which further
demonstrates the strength of our business."
THIRD QUARTER REVENUE AND BOOKINGS
Total revenue growth in the third quarter can be attributed to
increased sales of the Company's service assurance, virtualization
management and service automation, Software as a Service products
and service and education offerings. About 3 percentage points of
the revenue growth in constant currency was driven by organic
products and services, with the remaining 2 percentage points in
constant currency coming from acquisitions including products from
3Tera, Inc., Arcot Systems and Nimsoft, Inc. On an as reported
basis, this revenue growth was about evenly split. About 60
percent of the Company's revenue came from North America, while 40 percent came from
International operations.
- Revenue was $1.165 billion, up 5
percent in constant currency and 4 percent as reported.
- Total revenue backlog was $8.015
billion, up 2 percent in constant currency and up 1 percent
as reported. The current portion of revenue backlog was
$3.592 billion, up 4 percent in both
constant currency and as reported.
- North America revenue was
$697 million, up 7 percent in both
constant currency and as reported.
- International revenue was $468
million, up 1 percent in constant currency and down 1
percent as reported.
- Total bookings in the third quarter were $1.281 billion, down 5 percent in constant
currency and down 6 percent as reported primarily due to a decrease
in license and maintenance renewal bookings. This decrease
was partially offset by positive results for total new product and
capacity sales for the quarter.
- The Company signed 15 license agreements with aggregate values
greater than $10 million for a total
of $456 million, compared to 16
agreements for a total of $514
million in the third quarter of fiscal year 2010.
- The weighted average duration of subscription and maintenance
bookings for the quarter was 3.20 years, compared to 3.23
years in the prior year period.
- North America bookings were
$766 million, up 7 percent in
constant currency and up 8 percent as reported.
- International bookings were $515
million, down 19 percent in constant currency and 22 percent
as reported.
THIRD QUARTER EXPENSES AND MARGIN
Year-over-year GAAP results:
- Operating expenses, before interest and income taxes, were
$827 million, up 7 percent in
constant currency and as reported.
- Operating income, before interest and income taxes, was
$338 million, flat in constant
currency and down 3 percent as reported.
- Operating margin was 29 percent, down 2 percentage points from
the prior year period.
Expenses, operating income and operating margin for the third
quarter primarily were affected by increased costs associated with
acquisitions.
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, which
include recoveries and certain costs associated with derivative
litigation matters, share-based compensation expense, and include
gains and losses on hedges that mature within the quarter, but
exclude gains and losses on hedges that do not mature within the
quarter:
- Operating expenses, before interest and income taxes, were
$774 million, up 7 percent in
constant currency and up 6 percent as reported.
- Operating income, before interest and income taxes, was
$391 million, up 1 percent in
constant currency and down 1 percent as reported.
- Operating margin was 34 percent, a decrease of 1 percentage
point.
Non-GAAP results also primarily were affected by the increased
cost associated with acquisitions.
In the third quarter, GAAP earnings per share were affected by a
39 percent tax rate, compared with a 22 percent GAAP tax rate in
the third quarter of the previous year. The current period
GAAP tax rate was increased by unfavorable tax items and the prior
period GAAP tax rate decreased by favorable tax items which are not
expected to recur and that were unique to the respective
periods. Such tax items affect the company's non-GAAP tax
rate more evenly across the quarterly periods of its fiscal year
than its GAAP tax rate. In the third quarter of fiscal 2011,
non-GAAP EPS was positively affected by the year-over-year
improvement in non-GAAP tax rate from 36 percent to 32 percent.
CASH FLOW FROM OPERATIONS
Cash flow from operations was $496
million compared to $342
million in the prior year. Third quarter cash flow was
positively affected by a year-over-year increase of $78 million in upfront cash collections from
single installment customer payments and an increase of
$122 million in collections of
trade receivables. Cash flow was adversely affected by increased
disbursements related to acquisitions and personnel costs.
CAPITAL STRUCTURE
- Cash, cash equivalents and marketable securities were
$2.685 billion.
- With $1.555 billion in total debt
outstanding, the Company's net cash position was $1.130 billion.
- The Company repurchased approximately 1.5 million shares of
stock in the third quarter for a total of $35 million under the $500
million stock repurchase program authorized by the Board of
Directors in May 2010.
QUARTER HIGHLIGHTS
During the third quarter the Company:
- Completed the acquisition of privately-held Arcot Systems, Inc.
for about $200 million in an all-cash
transaction.
- Announced the release of CA 3Tera® AppLogic®, the Company's new
turnkey cloud computing platform.
- Announced the next-generation CA Automation Suite to help
customers with their journey to a virtualized, dynamic cloud
computing infrastructure.
- Completed the acquisition of privately-held Hyperformix, a
leading provider of capacity management software for dynamic
physical, virtual and cloud IT infrastructures. Terms of the
transaction were not disclosed.
- Announced the availability of CA Mainframe Chorus, the next
step in CA Technologies Mainframe 2.0 strategy to simplify
mainframe management, and help the platform to continue to be an
effective and integral part of evolving IT infrastructures.
ACQUISITION OF TOROKINA NETWORKS
The Company today announced the acquisition of privately-held
Torokina Networks Pty Ltd, a Sydney,
Australia, based provider of telecommunications management
solutions to 2G, 3G, next generation networks (NGN) and VoIP
service providers and network operators worldwide. CA Technologies
and Torokina Networks previously worked together as partners and
independent vendors. Terms of the acquisition were not
disclosed. A separate news release has been issued and can be
found here.
OUTLOOK FOR FISCAL YEAR 2011
Beginning in the first quarter of fiscal year 2011 the Company has
excluded share-based compensation expense from its non-GAAP
financial measures. The following guidance, which represents
"forward-looking statements" (as defined below), takes into account
the exclusion of share-based compensation expense from future
non-GAAP results. To enable fiscal year 2011 guidance for non-GAAP
earnings per share to be compared to fiscal year 2010 full year
results, the Company provides full fiscal year 2010 results for
non-GAAP earnings per share excluding stock-based compensation
expense below.
The Company updated its outlook issued on Oct. 21, 2010. It increased its revenue
outlook, increased guidance for GAAP and non-GAAP earnings per
share and reaffirmed its guidance for cash flow from operations.
The Company also updated projected as reported numbers based on
Dec. 31, 2010 exchange rates:
- Total revenue growth in a range of 4 percent to 5 percent in
constant currency. Previously, the range was 3 percent to 5
percent. At Dec. 31, 2010
exchange rates, this translates to reported revenue of $4.48 billion to $4.55 billion;
- GAAP diluted earnings per share from continuing operations
growth in constant currency increases to a range of 8 percent to 14
percent. Previously, the range was 5 percent to 13 percent.
At Dec. 31, 2010 exchange rates, this
translates to diluted earnings per share of $1.57 to $1.67;
- Non-GAAP diluted earnings per share from continuing operations
growth in constant currency increases to a range of 10 percent to
15 percent. Previously the range was 7 percent to 14 percent. At
Dec. 31, 2010 exchange rates, this
translates to non-GAAP diluted earnings per share of $1.88 to $1.98. Fiscal year 2010 non-GAAP diluted
earnings per share was $1.74
excluding share-based compensation expense; and
- Cash flow from operations growth remains in a range of 2
percent to 7 percent in constant currency. At Dec. 31, 2010 exchange rates, this translates to
cash flow from operations of $1.400 billion
to $1.475 billion.
This outlook also assumes no material acquisitions and a partial
currency hedge of operating income. The Company expects its
full-year GAAP and non-GAAP tax rate to be in a range of 32 percent
to 33 percent. This lowers the previous guidance range of between
33 percent to 34 percent.
The Company anticipates approximately 504 million shares
outstanding at fiscal year 2011 year-end and a weighted average
diluted shares outstanding of approximately 508 million for the
fiscal year. Guidance does not include the impact from any future
stock repurchases.
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 third
quarter results. The webcast will be archived on the Company
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 1-877-857-6161. The
international participant number is 1-719-325-4753.
(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 (Update)
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. 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
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, 2010, 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 and Software-as-a-Service offerings and improving the
Company's brand in the marketplace; global economic factors or
political events beyond the Company's control; general economic
conditions, including concerns regarding a global recession and
credit constraints, or unfavorable economic conditions in a
particular region, industry or business sector; failure to expand
channel partner programs; the ability to adequately manage and
evolve financial reporting and managerial systems and processes;
the ability to successfully acquire technology and software that
are consistent with our strategy and 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,
third-party code and specifications for the development of code;
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;
access to third-party microcode; third-party claims of intellectual
property infringement or royalty payments; fluctuations in foreign
currencies; failure to successfully execute restructuring plans;
successful outsourcing of various functions to third parties;
potential tax liabilities; and these factors and the 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:
|
Dan Kaferle
|
Kelsey Doherty
|
|
|
Public Relations
|
Investor Relations
|
|
|
(631) 342-2111
|
(212) 415-6844
|
|
|
daniel.kaferle@ca.com
|
kelsey.doherty@ca.com
|
|
|
|
|
Table
1
CA
Technologies
Condensed
Consolidated Statements of Operations
(in
millions, except per share amounts)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
Revenue
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Subscription and maintenance
revenue
|
$
995
|
|
$
995
|
|
$ 2,917
|
|
$ 2,905
|
|
Professional services
|
88
|
|
73
|
|
245
|
|
213
|
|
Software fees and
other
|
82
|
|
54
|
|
204
|
|
115
|
|
Total revenue
|
1,165
|
|
1,122
|
|
3,366
|
|
3,233
|
|
Expenses
|
|
|
|
|
|
|
|
|
Costs of licensing and
maintenance
|
82
|
|
73
|
|
233
|
|
211
|
|
Cost of professional
services
|
77
|
|
66
|
|
223
|
|
191
|
|
Amortization of capitalized
software costs
|
52
|
|
34
|
|
145
|
|
101
|
|
Selling and marketing
|
348
|
|
315
|
|
955
|
|
879
|
|
General and
administrative
|
114
|
|
129
|
|
344
|
|
358
|
|
Product development and
enhancements
|
110
|
|
117
|
|
363
|
|
348
|
|
Depreciation and amortization of
other intangible assets
|
47
|
|
39
|
|
136
|
|
116
|
|
Other expenses (gains),
net
|
5
|
|
(3)
|
|
9
|
|
11
|
|
Restructuring and
other
|
(8)
|
|
2
|
|
(11)
|
|
4
|
|
Total expenses before interest
and income taxes
|
827
|
|
772
|
|
2,397
|
|
2,219
|
|
Income from continuing
operations before interest and income taxes
|
338
|
|
350
|
|
969
|
|
1,014
|
|
Interest expense, net
|
10
|
|
23
|
|
35
|
|
62
|
|
Income from continuing
operations before income taxes
|
328
|
|
327
|
|
934
|
|
952
|
|
Income tax expense
|
128
|
|
71
|
|
289
|
|
283
|
|
INCOME FROM CONTINUING
OPERATIONS
|
$
200
|
|
$
256
|
|
$
645
|
|
$
669
|
|
Income (loss) from discontinued
operations, net of income taxes
|
-
|
|
1
|
|
(6)
|
|
1
|
|
NET INCOME
|
$
200
|
|
$
257
|
|
$
639
|
|
$
670
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per
share
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
0.39
|
|
$
0.49
|
|
$
1.26
|
|
$
1.28
|
|
Loss from discontinued
operations
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
Net Income
|
$
0.39
|
|
$
0.49
|
|
$
1.25
|
|
$
1.28
|
|
Basic weighted average shares
used in computation
|
505
|
|
515
|
|
507
|
|
516
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per
share
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
$
0.39
|
|
$
0.49
|
|
$
1.25
|
|
$
1.27
|
|
Loss from discontinued
operations
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
Net Income
|
$
0.39
|
|
$
0.49
|
|
$
1.24
|
|
$
1.27
|
|
Diluted weighted average shares
used in computation
|
506
|
|
535
|
|
508
|
|
539
|
|
|
|
|
|
|
|
|
|
|
Certain balances have been
revised to reflect the discontinued operations associated with the
sale of the Information Governance
business.
|
|
|
|
|
|
|
|
|
|
Table
2
CA
Technologies
Condensed
Consolidated Balance Sheets
(in
millions)
(unaudited)
|
|
|
|
|
|
|
|
December
31,
|
|
March
31,
|
|
|
2010
|
|
2010
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
2,518
|
|
$
2,583
|
|
Marketable securities-
current
|
59
|
|
-
|
|
Trade and installment accounts
receivable, net
|
866
|
|
931
|
|
Deferred income taxes -
current
|
194
|
|
360
|
|
Other current assets
|
159
|
|
116
|
|
|
|
|
|
|
Total current
assets
|
3,796
|
|
3,990
|
|
|
|
|
|
|
Marketable securities -
noncurrent
|
108
|
|
-
|
|
Installment accounts receivable,
due after one year, net
|
-
|
|
46
|
|
Property and equipment,
net
|
439
|
|
452
|
|
Goodwill
|
5,742
|
|
5,667
|
|
Capitalized software and other
intangible assets, net
|
1,299
|
|
1,150
|
|
Deferred income taxes -
noncurrent
|
309
|
|
355
|
|
Other noncurrent assets,
net
|
198
|
|
178
|
|
|
|
|
|
|
Total assets
|
$
11,891
|
|
$
11,838
|
|
|
|
|
|
|
Current portion of long-term
debt and loans payable
|
$
16
|
|
$
15
|
|
Deferred revenue (billed or
collected) - current
|
2,342
|
|
2,555
|
|
Deferred income taxes -
current
|
53
|
|
51
|
|
Other current
liabilities
|
802
|
|
967
|
|
|
|
|
|
|
Total current
liabilities
|
3,213
|
|
3,588
|
|
|
|
|
|
|
Long-term debt, net of current
portion
|
1,539
|
|
1,530
|
|
Deferred income taxes -
noncurrent
|
143
|
|
134
|
|
Deferred revenue (billed or
collected) - noncurrent
|
995
|
|
1,068
|
|
Other noncurrent
liabilities
|
536
|
|
535
|
|
|
|
|
|
|
Total liabilities
|
6,426
|
|
6,855
|
|
|
|
|
|
|
Common stock
|
59
|
|
59
|
|
Additional paid-in
capital
|
3,598
|
|
3,657
|
|
Retained earnings
|
3,938
|
|
3,361
|
|
Accumulated other comprehensive
loss
|
(79)
|
|
(130)
|
|
Treasury stock
|
(2,051)
|
|
(1,964)
|
|
|
|
|
|
|
Total stockholders’
equity
|
5,465
|
|
4,983
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity
|
$
11,891
|
|
$
11,838
|
|
|
|
|
|
Table
3
CA
Technologies
Condensed
Consolidated Statements of Cash Flows
(in
millions)
(unaudited)
|
|
|
Three Months
Ended
|
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
OPERATING
ACTIVITIES:
|
|
|
|
|
Net
income
|
$
200
|
|
$
257
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and
amortization
|
99
|
|
74
|
|
Provision for deferred
income taxes
|
-
|
|
(16)
|
|
Share based compensation
expense
|
21
|
|
22
|
|
Amortization of discount
on convertible debt
|
-
|
|
9
|
|
Asset impairments and
other non-cash activities
|
1
|
|
1
|
|
Foreign currency
transaction gains
|
3
|
|
6
|
|
Changes in other operating assets and liabilities, net of
effect of acquisitions:
|
|
|
|
|
Increase in trade and
installment accounts receivable, net
|
(167)
|
|
(177)
|
|
Increase in deferred
revenue
|
209
|
|
51
|
|
Increase in taxes payable,
net
|
142
|
|
110
|
|
Decrease in accounts
payable, accrued expenses and other
|
(17)
|
|
(26)
|
|
Increase in accrued
salaries, wages and commissions
|
20
|
|
42
|
|
Decrease in restructuring
liabilities
|
(12)
|
|
(7)
|
|
Changes in other operating
assets and liabilities
|
(3)
|
|
(4)
|
|
NET CASH PROVIDED BY OPERATING
ACTIVITIES
|
496
|
|
342
|
|
INVESTING
ACTIVITIES:
|
|
|
|
|
Acquisitions, primarily businesses, net of cash
acquired,
|
|
|
|
|
and
purchased software
|
(224)
|
|
(198)
|
|
Purchases of property and equipment
|
(26)
|
|
(15)
|
|
Cash
proceeds from divestiture of assets
|
3
|
|
-
|
|
Capitalized software development costs
|
(43)
|
|
(46)
|
|
Purchases of marketable securities
|
(168)
|
|
-
|
|
Other investing activities
|
(1)
|
|
(1)
|
|
NET CASH USED IN INVESTING
ACTIVITIES
|
(459)
|
|
(260)
|
|
FINANCING
ACTIVITIES:
|
|
|
|
|
Dividends paid
|
(20)
|
|
(21)
|
|
Purchases of common stock
|
(33)
|
|
(45)
|
|
Debt
repayments
|
(2)
|
|
(406)
|
|
Exercise of common stock options and other
|
3
|
|
4
|
|
NET CASH USED IN FINANCING
ACTIVITIES
|
(52)
|
|
(468)
|
|
DECREASE IN CASH AND CASH
EQUIVALENTS BEFORE
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH
|
(15)
|
|
(386)
|
|
Effect of exchange rate changes
on cash
|
8
|
|
(15)
|
|
DECREASE IN CASH AND CASH
EQUIVALENTS
|
(7)
|
|
(401)
|
|
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD
|
2,525
|
|
3,025
|
|
CASH AND CASH EQUIVALENTS AT END
OF PERIOD
|
$
2,518
|
|
$
2,624
|
|
|
|
|
|
Table
4
CA
Technologies
Constant
Currency Summary
(in
millions)
(unaudited)
|
|
|
|
Three Months
Ended December 31,
|
|
|
|
2010
|
|
2009
|
|
%
Increase
(Decrease)
in $
US
|
|
%
Increase
(Decrease)
in
Constant
Currency
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
$
1,281
|
|
$
1,367
|
|
(6%)
|
|
(5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
North America
|
$
697
|
|
$
650
|
|
7%
|
|
7%
|
|
|
International
|
468
|
|
472
|
|
(1%)
|
|
1%
|
|
|
Total revenue
|
$
1,165
|
|
$
1,122
|
|
4%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Subscription and
maintenance
|
$
995
|
|
$
995
|
|
0%
|
|
1%
|
|
|
Professional
services
|
88
|
|
73
|
|
21%
|
|
23%
|
|
|
Software fees and
other
|
82
|
|
54
|
|
52%
|
|
50%
|
|
|
Total revenue
|
$
1,165
|
|
$
1,122
|
|
4%
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses before interest
and income taxes:
|
|
|
|
|
|
|
|
|
|
Total Non-GAAP
(2)
|
$
774
|
|
$
728
|
|
6%
|
|
7%
|
|
|
Total GAAP
|
$
827
|
|
$
772
|
|
7%
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended December 31,
|
|
|
|
2010
|
|
2009
|
|
%
Increase
(Decrease)
in $
US
|
|
%
Increase
(Decrease)
in
Constant
Currency
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
$
3,049
|
|
$
3,493
|
|
(13%)
|
|
(12%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
North America
|
$
2,038
|
|
$
1,899
|
|
7%
|
|
7%
|
|
|
International
|
1,328
|
|
1,334
|
|
0%
|
|
1%
|
|
|
Total revenue
|
$
3,366
|
|
$
3,233
|
|
4%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Subscription and
maintenance
|
$
2,917
|
|
$
2,905
|
|
0%
|
|
1%
|
|
|
Professional
services
|
245
|
|
213
|
|
15%
|
|
16%
|
|
|
Software fees and
other
|
204
|
|
115
|
|
77%
|
|
74%
|
|
|
Total revenue
|
$
3,366
|
|
$
3,233
|
|
4%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses before interest
and income taxes:
|
|
|
|
|
|
|
|
|
|
Total Non-GAAP
(2)
|
$
2,219
|
|
$
2,059
|
|
8%
|
|
8%
|
|
|
Total GAAP
|
$
2,397
|
|
$
2,219
|
|
8%
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2010, which was the
last day of fiscal year 2010. Constant currency excludes the
impacts from the Company's hedging program.
(2) Refer to Table 6 for a
reconciliation of total expenses before interest and income taxes
on a GAAP basis to total expenses before interest and income taxes
on a non-GAAP basis.
Certain balances
have been revised to reflect the discontinued operations associated
with the sale of the Information Governance business.
Certain
non-material differences may arise versus actual from impact of
rounding.
|
|
|
|
|
|
|
|
|
|
|
Table
5
CA
Technologies
Reconciliation of GAAP to
non-GAAP Income from Continuing Operations
(in
millions, except per share
amounts)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
December 31,
2010
|
|
December 31,
2009
|
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
1,165
|
|
-
|
|
1,165
|
|
1,122
|
|
-
|
|
1,122
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of licensing and
maintenance(1)
|
82
|
|
1
|
|
81
|
|
73
|
|
-
|
|
73
|
|
|
Cost of professional
services(1)
|
77
|
|
1
|
|
76
|
|
66
|
|
1
|
|
65
|
|
|
Amortization of capitalized
software costs(2)
|
52
|
|
23
|
|
29
|
|
34
|
|
13
|
|
21
|
|
|
Selling and
marketing(1)
|
348
|
|
8
|
|
340
|
|
315
|
|
8
|
|
307
|
|
|
General and
administrative(1)
|
114
|
|
7
|
|
107
|
|
129
|
|
7
|
|
122
|
|
|
Product development and
enhancements(1)
|
110
|
|
4
|
|
106
|
|
117
|
|
6
|
|
111
|
|
|
Depreciation and amortization of
other intangible assets(3)
|
47
|
|
18
|
|
29
|
|
39
|
|
13
|
|
26
|
|
|
Other expenses (gains), net
(4)
|
5
|
|
-
|
|
5
|
|
(3)
|
|
(6)
|
|
3
|
|
|
Restructuring and other
(5)
|
(8)
|
|
(9)
|
|
1
|
|
2
|
|
2
|
|
-
|
|
|
Total expenses before interest
and income taxes
|
827
|
|
53
|
|
774
|
|
772
|
|
44
|
|
728
|
|
|
Income from continuing
operations before interest and income taxes
|
338
|
|
(53)
|
|
391
|
|
350
|
|
(44)
|
|
394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin (%
of revenue)
|
29%
|
|
|
|
34%
|
|
31%
|
|
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
10
|
|
-
|
|
10
|
|
23
|
|
-
|
|
23
|
|
|
Interest on dilutive convertible
bonds(6)
|
-
|
|
-
|
|
-
|
|
-
|
|
11
|
|
(11)
|
|
|
Income from continuing
operations before income taxes
|
328
|
|
(53)
|
|
381
|
|
327
|
|
(55)
|
|
382
|
|
|
Income tax
expense(7)(8)
|
128
|
|
7
|
|
121
|
|
71
|
|
(65)
|
|
136
|
|
|
INCOME FROM CONTINUING
OPERATIONS(6)
|
200
|
|
(60)
|
|
260
|
|
256
|
|
10
|
|
246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations(7)(8)(9)
|
$
0.39
|
|
$
0.12
|
|
$
0.51
|
|
$
0.49
|
|
$
(0.03)
|
|
$
0.46
|
|
|
Diluted weighted average shares
used in computation(9)
|
506
|
|
|
|
506
|
|
535
|
|
|
|
535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
December 31,
2010
|
|
December 31,
2009
|
|
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
Adjustments
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
3,366
|
|
-
|
|
3,366
|
|
3,233
|
|
-
|
|
3,233
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of licensing and
maintenance(1)
|
233
|
|
3
|
|
230
|
|
211
|
|
2
|
|
209
|
|
|
Cost of professional
services(1)
|
223
|
|
3
|
|
220
|
|
191
|
|
2
|
|
189
|
|
|
Amortization of capitalized
software costs(2)
|
145
|
|
67
|
|
78
|
|
101
|
|
39
|
|
62
|
|
|
Selling and
marketing(1)
|
955
|
|
23
|
|
932
|
|
879
|
|
25
|
|
854
|
|
|
General and
administrative(1)
|
344
|
|
17
|
|
327
|
|
358
|
|
29
|
|
329
|
|
|
Product development and
enhancements(1)
|
363
|
|
15
|
|
348
|
|
348
|
|
17
|
|
331
|
|
|
Depreciation and amortization of
other intangible assets(3)
|
136
|
|
51
|
|
85
|
|
116
|
|
39
|
|
77
|
|
|
Other expenses (gains), net
(4)
|
9
|
|
7
|
|
2
|
|
11
|
|
3
|
|
8
|
|
|
Restructuring and other
(5)
|
(11)
|
|
(8)
|
|
(3)
|
|
4
|
|
4
|
|
-
|
|
|
Total expenses before interest
and income taxes
|
2,397
|
|
178
|
|
2,219
|
|
2,219
|
|
160
|
|
2,059
|
|
|
Income from continuing
operations before interest and income taxes
|
969
|
|
(178)
|
|
1,147
|
|
1,014
|
|
(160)
|
|
1,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Margin (%
of revenue)
|
29%
|
|
|
|
34%
|
|
31%
|
|
|
|
36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
35
|
|
-
|
|
35
|
|
62
|
|
-
|
|
62
|
|
|
Interest on dilutive convertible
bonds(6)
|
-
|
|
-
|
|
-
|
|
-
|
|
35
|
|
(35)
|
|
|
Income from continuing
operations before income taxes
|
934
|
|
(178)
|
|
1,112
|
|
952
|
|
(195)
|
|
1,147
|
|
|
Income tax
expense(7)(8)
|
289
|
|
(77)
|
|
366
|
|
283
|
|
(124)
|
|
407
|
|
|
INCOME FROM CONTINUING
OPERATIONS(6)
|
645
|
|
(101)
|
|
746
|
|
669
|
|
(71)
|
|
740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations(7)(8)(9)
|
$
1.25
|
|
$
0.20
|
|
$
1.45
|
|
$
1.27
|
|
$
0.09
|
|
$
1.36
|
|
|
Diluted weighted average shares
used in computation(9)
|
508
|
|
|
|
508
|
|
539
|
|
|
|
539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP adjustment
consists of Share-based Compensation
(2) Non-GAAP adjustment
consists of Purchased Software Amortization
(3) Non-GAAP adjustment
consists of Intangibles Amortization
(4) 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.
(5) Non-GAAP adjustment
excludes $3 of benefit related to the Fiscal 2010 restructuring
plan for the nine months ended December 31, 2010 and includes $9M
net gain from one-time stockholder derivative litigation
settlements during the three months ended December 31, 2010.
(6) Non-GAAP income from
continuing operations and the number of shares used in the
computation of non-GAAP diluted EPS from continuing operations have
been adjusted to reflect the dilutive impact of the Company’s
1.625% Convertible Senior Notes and stock awards outstanding for
the three and nine months ended December 31, 2009.
(7) 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).
(8) Includes an income tax
benefit related to share based compensation of $7M and $20M for the
three and nine months ended December 31, 2010, respectively, and
$8M and $26M for the three and nine months ended December 31, 2009,
respectively.
(9) The calculation of the
non-GAAP diluted EPS from continuing operations includes certain
adjustments required by ASC 260-10-45 which treats certain stock
awards as participating securities for the computation of earnings
per share. As a result, non-GAAP diluted EPS from continuing
operations may not equal the non-GAAP income from continuing
operations divided by the diluted weighted average shares.
Refer to the
discussion of non-GAAP financial measures included in the
accompanying press release for additional information.
Certain balances
have been revised to reflect the discontinued operations associated
with the sale of the Information Governance business.
Certain
non-material differences may arise versus actual from impact of
rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table
6
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
|
|
Nine Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
Operating Expenses
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses before interest
and income taxes
|
$
827
|
|
$
772
|
|
$
2,397
|
|
$
2,219
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating
adjustments:
|
|
|
|
|
|
|
|
|
|
Purchased software
amortization
|
23
|
|
13
|
|
67
|
|
39
|
|
|
Intangibles
amortization
|
18
|
|
13
|
|
51
|
|
39
|
|
|
Share-based
compensation
|
21
|
|
22
|
|
61
|
|
75
|
|
|
Restructuring and
other
|
(9)
|
|
2
|
|
(8)
|
|
4
|
|
|
Hedging (gains)/losses,
net (1)
|
-
|
|
(6)
|
|
7
|
|
3
|
|
|
Total non-GAAP operating
adjustments
|
53
|
|
44
|
|
178
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP operating
expenses
|
$
774
|
|
$
728
|
|
$
2,219
|
|
$
2,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
Diluted EPS from Continuing
Operations
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted EPS from continuing
operations
|
$
0.39
|
|
$
0.49
|
|
$
1.25
|
|
$
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments, net of
taxes
|
|
|
|
|
|
|
|
|
|
Purchased software and
intangibles amortization
|
0.05
|
|
0.03
|
|
0.15
|
|
0.09
|
|
|
Share-based
compensation
|
0.03
|
|
0.03
|
|
0.08
|
|
0.09
|
|
|
Restructuring and
other
|
(0.01)
|
|
-
|
|
(0.01)
|
|
-
|
|
|
Hedging (gains)/losses,
net (1)
|
-
|
|
(0.01)
|
|
0.01
|
|
(0.01)
|
|
|
Non-GAAP effective tax
rate adjustments (2)
|
0.05
|
|
(0.08)
|
|
(0.03)
|
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted EPS from
continuing operations
|
$
0.51
|
|
$
0.46
|
|
$
1.45
|
|
$
1.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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.
(2) 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.
Certain balances
have been revised to reflect the discontinued operations associated
with the sale of the Information Governance business.
Certain non-material differences
may arise versus actual from impact of rounding.
|
|
|
|
|
|
|
|
|
|
|
Table
7
CA
Technologies
Effective
Tax Rate Reconciliation
GAAP and
Non-GAAP
(in
millions)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
December 31,
2010
|
|
December 31,
2010
|
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income taxes (1)
|
$
328
|
|
$
381
|
|
$
934
|
|
$
1,112
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate
|
35%
|
|
35%
|
|
35%
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax at statutory rate
|
115
|
|
133
|
|
327
|
|
389
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for discrete and
permanent items (2)
|
13
|
|
(12)
|
|
(38)
|
|
(23)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total tax expense
|
$
128
|
|
$
121
|
|
$
289
|
|
$
366
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
(3)
|
39.0%
|
|
31.7%
|
|
30.9%
|
|
32.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
December 31,
2009
|
|
December 31,
2009
|
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations before income taxes (1)
|
$
327
|
|
$
382
|
|
$
952
|
|
$
1,147
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate
|
35%
|
|
35%
|
|
35%
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax at statutory rate
|
114
|
|
134
|
|
333
|
|
401
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for discrete and
permanent items (2)
|
(43)
|
|
2
|
|
(50)
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
Total tax expense
|
$
71
|
|
$
136
|
|
$
283
|
|
$
407
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
(3)
|
21.7%
|
|
35.6%
|
|
29.7%
|
|
35.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Refer to Table 5 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
8
CA
Technologies
Reconciliation of GAAP Earnings
per Share to
Non-GAAP
Earnings per Share
(unaudited)
|
|
|
|
|
|
|
|
|
|
Fiscal Year
Ending
|
|
|
Projected Diluted EPS from
Continuing Operations
|
March 31,
2011
|
|
|
|
|
|
|
|
|
Projected GAAP Diluted EPS From
Continuing Operations Range
|
$
1.57
|
to
|
$
1.67
|
|
|
|
|
|
|
|
|
Non-GAAP Adjustments, Net of
Taxes:
|
|
|
|
|
|
Purchased Software
and Intangibles Amortization
|
0.21
|
|
0.21
|
|
|
Share-based
Compensation
|
0.11
|
|
0.11
|
|
|
Restructuring and
Other
|
(0.01)
|
|
(0.01)
|
|
|
Non-GAAP Projected Diluted EPS
From Continuing Operations Range
|
$
1.88
|
to
|
$
1.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
Ended
|
|
|
|
|
Diluted EPS from Continuing
Operations
|
March 31,
2010
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted EPS from continuing
operations
|
$
1.47
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments, net of
taxes
|
|
|
|
|
|
Purchased software and
intangibles amortization
|
0.14
|
|
|
|
|
Share-based
compensation
|
0.13
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted EPS from
continuing operations
|
$
1.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Refer to the discussion of
non-GAAP financial measures included in the accompanying press
release for additional information.
Certain balances have been
revised to reflect the discontinued operations associated with the
sale of the Information Governance business.
Certain non-material
differences may arise versus actual from impact of rounding.
|
|
|
|
|
|
|
Table
9
CA
Technologies
Allocation
of Share-based Compensation
(in
millions)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
Costs of licensing and
maintenance
|
$
1
|
|
$
-
|
|
$
3
|
|
$
2
|
|
Costs of professional
services
|
1
|
|
1
|
|
3
|
|
2
|
|
Selling and marketing
|
8
|
|
8
|
|
23
|
|
25
|
|
General and
administrative
|
7
|
|
7
|
|
17
|
|
29
|
|
Product development and
enhancements
|
4
|
|
6
|
|
15
|
|
17
|
|
Share-based compensation expense
before tax
|
21
|
|
22
|
|
61
|
|
75
|
|
Income tax benefit
|
(7)
|
|
(8)
|
|
(20)
|
|
(26)
|
|
Net share-based
compensation expense
|
$
14
|
|
$
14
|
|
$
41
|
|
$
49
|
|
|
|
|
|
|
|
|
|
|
Certain non-material differences
may arise versus actual from impact of rounding.
|
|
|
|
|
|
|
|
|
|
SOURCE CA Technologies