CA announces "positive" financial results

CA announces "positive" financial results

Revenue increases to over $1billion

Management software vendor CA has announced financial results for its second quarter fiscal year 2008, ending September 30th 2007.

The total revenue for CA increased from $987 million to $1.067 billion from the same period last year, which is an increase of eight percent or five percent in constant currency, according to a CA report.

Sales were bolstered by CA’s acquisition of privately held web application management vendor Wily technologies in January 2006. The company also looks like it is finally experiencing the benefits of John Swainson’s new management, after the 2004 accounting scandal that lead to Sanjay Kumar’s resignation and arrest.

Donna Scott, Gartner analyst, said although CA’s financial growth has been “moderate,” it is “positive” because it shows Swainson has risen to the large task of turning the company culture around, and making it more customer and technology focussed. Swainson is now enjoying the “fruits of his labour,” Scott said.

Swainson said the four CA products that had performed particularly well were the security products, network management solutions, the Wily family of application performance management products and the Clarity products for budget and portfolio management. These “extremely well” performing products had “helped drag a lot of the rest of the portfolio with them,” Swainson said.

Contributing to CA’s increased revenue was the increase it has experienced in product and service bookings. CA’s total bookings have increased by 46 percent from the comparable prior year period, driven primarily from the large number of contracts being renewed in the quarter, and the increased contract length, said the CA report.

CA’s reductions in costs have also contributed to the positive financial results. Total expenses have decreased by nine percent, or eleven percent in constant currency, from $907 million in the prior year period to $823 million.