CA Inc.'s (CA) fiscal first-quarter earnings rose 11% as the
business-software maker posted a jump on its top line and continued
to control costs.
CA, which makes software for mainframe and other corporate
computers, has kept a sharp eye on costs in recent years, helping
it to post a relatively steady operating profit. Wednesday, it said
it would incur a charge of roughly $35 million to $45 million in
the current quarter as it reduces its work force by up to 500 jobs.
The company has about 13,000 employees.
For the quarter ended June 30, the company posted a profit of
$241 million, or 47 cents a share, up from a year-earlier profit of
$217 million, or 42 cents a share. Excluding restructuring costs
and other items, earnings from continuing operations rose to 55
cents a share from 45 cents.
Revenue rose 8.8% to $1.16 billion. Analysts surveyed by Thomson
Reuters expected a profit of 51 cents a share on revenue of $1.14
billion.
Revenue in North America rose 9%, while international revenue
jumped 8%. Bookings rose 18%, or 11% on a constant currency
basis.
Shares of the company, which also affirmed its full-year revenue
and adjusted guidance, closed Wednesday at $22.35 and were
unchanged after hours.
-By Mia Lamar, Dow Jones Newswires; 212-416-3207;
mia.lamar@dowjones.com