UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
8-K
CURRENT
REPORT PURSUANT
TO
SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of Report:
May
15, 2014
(Date
of earliest event reported)
CA,
Inc.
(Exact
name of registrant as specified in its charter)
Delaware
(State
or other jurisdiction of incorporation)
1-9247
(Commission File Number)
|
|
13-2857434
(IRS Employer Identification No.)
|
|
|
|
One CA Plaza
Islandia, New York
(Address of principal executive offices)
|
|
11749
(Zip Code)
|
(800) 225-5224
(Registrant’s telephone number,
including area code)
Not applicable
(Former name or former address, if
changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On May 15, 2014, CA, Inc. (the “Company”) issued a press release
announcing its financial results for the fiscal quarter and fiscal year
ended March 31, 2014. A copy of the press release is attached as
Exhibit 99.1 hereto and is incorporated herein by reference.
In accordance with General Instruction B.2. of Form 8-K, the information
in this Current Report on Form 8-K furnished pursuant to Item 2.02,
including Exhibit 99.1, shall not be deemed “filed” for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), or otherwise subject to the liability of that section,
and it shall not be deemed incorporated by reference in any filing under
the Securities Act of 1933, as amended, or the Exchange Act, except as
expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
|
|
Description
|
99.1
|
|
Press release dated May 15, 2014 relating to CA, Inc.’s financial
results.
|
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
|
|
CA, INC.
|
|
|
|
|
Date:
|
May 15, 2014
|
By:
|
/s/ C.H.R. DuPree
|
|
|
|
C.H.R. DuPree
|
|
|
|
Senior Vice President, Chief Governance
|
|
|
|
Counsel, and Corporate Secretary
|
Exhibit Index
Exhibit No.
|
|
Description
|
99.1
|
|
Press release dated May 15, 2014 relating to CA, Inc.’s financial
results.
|
Exhibit 99.1
CA
Technologies Reports Fourth Quarter and Full Fiscal Year 2014 Results
-
Fourth
Quarter and FY2014 Revenue of $1.108 Billion and $4.515 Billion,
Compared With $1.143 Billion and $4.610 Billion Last Year, Respectively
-
Fourth
Quarter and FY2014 GAAP EPS of $0.23 and $1.99, Compared With $0.52
and $2.03 Last Year, Respectively
-
Fourth
Quarter and FY2014 Non-GAAP EPS of $0.61 and $3.07, Compared With
$0.67 and $2.48 Last Year, Respectively
-
Fourth
Quarter and FY2014 Cash Flow From Continuing Operations of $483
Million and $997 Million, Compared With $565 Million and $1.390
Billion Last Year, Respectively
-
Announces
Authorization to Repurchase up to $1 Billion in CA Technologies Common
Stock
NEW YORK--(BUSINESS WIRE)--May 15, 2014--CA Technologies (NASDAQ:CA)
today reported financial results for its fourth quarter and full fiscal
year 2014, ended March 31, 2014.
FINANCIAL OVERVIEW
Note: All financial results have been adjusted to reflect the
classification of the Company's ERwin Data Modeling Business as a
discontinued operation as announced in Form 8-K filed on March 13, 2014.
|
(dollars in millions, except share data)
|
|
Fourth Quarter FY14 vs. FY13
|
|
Full Year FY14 vs. FY13
|
|
FY14
|
|
FY13
|
|
% Change
|
|
% Change CC**
|
|
FY14
|
|
FY13
|
|
% Change
|
|
% Change CC**
|
Revenue
|
|
$1,108
|
|
$1,143
|
|
(3)%
|
|
(2)%
|
|
$4,515
|
|
$4,610
|
|
(2)%
|
|
(1)%
|
GAAP Income from Continuing Operations
|
|
$104
|
|
$238
|
|
(56)%
|
|
(53)%
|
|
$899
|
|
$939
|
|
(4)%
|
|
(2)%
|
Non-GAAP Income from Continuing Operations*
|
|
$274
|
|
$305
|
|
(10)%
|
|
(6)%
|
|
$1,387
|
|
$1,148
|
|
21%
|
|
22%
|
GAAP Diluted EPS from Continuing Operations
|
|
$0.23
|
|
$0.52
|
|
(56)%
|
|
(52)%
|
|
$1.99
|
|
$2.03
|
|
(2)%
|
|
0%
|
Non-GAAP Diluted EPS from Continuing Operations*
|
|
$0.61
|
|
$0.67
|
|
(9)%
|
|
(4)%
|
|
$3.07
|
|
$2.48
|
|
24%
|
|
25%
|
Cash Flow from Continuing Operations
|
|
$483
|
|
$565
|
|
(15)%
|
|
(16)%
|
|
$997
|
|
$1,390
|
|
(28)%
|
|
(26)%
|
* 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
Mike Gregoire, CA Technologies Chief Executive Officer, made the
following comments:
“We concluded a year of significant transformation and strategic
progress on our journey to build CA for growth and market leadership. We
have successfully executed our rebalancing program, consolidated
development resources in key hubs, shifted innovation investment to new
growth markets, and renewed our focus on building and delivering
excellent, differentiated solutions to our customers.
"Against this backdrop of activity, our continued focus on financial and
operational execution resulted in a margin increase to 37 percent* and
the attainment of all financial guidance measures for fiscal year 2014.
"As we look toward fiscal year 2015, we will remain laser-focused on
driving execution, innovation and speed across the organization. Revenue
is still not where we would like it to be, and we will not be satisfied
until we are driving meaningful growth for our company and our
shareholders. All 12,700 people across the Company are focused on the
work ahead to position CA to win.”
*Reference is to non-GAAP operating margin
REVENUE AND BOOKINGS
Fourth Quarter
|
|
(dollars in millions)
|
|
|
Fourth Quarter FY14 vs. FY13
|
|
|
|
FY14
|
|
|
% of Total
|
|
|
FY13
|
|
|
% of Total
|
|
|
% Change
|
|
|
% Change CC**
|
|
North America Revenue
|
|
|
$699
|
|
|
63%
|
|
|
$716
|
|
|
63%
|
|
|
(2)%
|
|
|
(2)%
|
|
International Revenue
|
|
|
$409
|
|
|
37%
|
|
|
$427
|
|
|
37%
|
|
|
(4)%
|
|
|
(2)%
|
|
Total Revenue
|
|
|
$1,108
|
|
|
|
|
|
$1,143
|
|
|
|
|
|
(3)%
|
|
|
(2)%
|
|
|
|
|
|
|
North America Bookings
|
|
|
$768
|
|
|
62%
|
|
|
$975
|
|
|
67%
|
|
|
(21)%
|
|
|
(22)%
|
|
International Bookings
|
|
|
$473
|
|
|
38%
|
|
|
$477
|
|
|
33%
|
|
|
(1)%
|
|
|
0%
|
|
Total Bookings
|
|
|
$1,241
|
|
|
|
|
|
$1,452
|
|
|
|
|
|
(15)%
|
|
|
(15)%
|
|
|
|
|
|
|
Current Revenue Backlog
|
|
|
$3,542
|
|
|
|
|
|
$3,545
|
|
|
|
|
|
0%
|
|
|
0%
|
|
Total Revenue Backlog
|
|
|
$7,704
|
|
|
|
|
|
$7,747
|
|
|
|
|
|
(1)%
|
|
|
(1)%
|
|
**CC: Constant Currency
•
|
|
The decrease in revenue was primarily attributable to a decrease in
Enterprise Solutions new product sales in both the current and prior
fiscal years.
|
|
|
|
•
|
|
The Company executed a total of 16 license agreements with
incremental contract values in excess of $10 million each, for an
aggregate contract value of $456 million. During the fourth quarter
of fiscal 2013, the Company executed a total of 20 license
agreements with incremental contract values in excess of $10 million
each, for an aggregate contract value of $744 million, which
included one contract of more than $200 million with a U.S.
government agency.
|
|
|
|
•
|
|
The weighted average duration of subscription and maintenance
bookings for the quarter was 3.15 years, compared with 3.78 years
for the same period in fiscal 2013.
|
|
|
|
Full Year
|
|
|
|
|
(dollars in millions)
|
|
|
Full Year FY14 vs. FY13
|
|
|
|
FY14
|
|
|
% of Total
|
|
|
FY13
|
|
|
% of Total
|
|
|
% Change
|
|
|
% Change CC**
|
|
North America Revenue
|
|
|
$2,852
|
|
|
63%
|
|
|
$2,893
|
|
|
63%
|
|
|
(1)%
|
|
|
(1)%
|
|
International Revenue
|
|
|
$1,663
|
|
|
37%
|
|
|
$1,717
|
|
|
37%
|
|
|
(3)%
|
|
|
(1)%
|
|
Total Revenue
|
|
|
$4,515
|
|
|
|
|
|
$4,610
|
|
|
|
|
|
(2)%
|
|
|
(1)%
|
|
|
|
|
|
|
North America Bookings
|
|
|
$2,679
|
|
|
59%
|
|
|
$2,465
|
|
|
60%
|
|
|
9%
|
|
|
9%
|
|
International Bookings
|
|
|
$1,842
|
|
|
41%
|
|
|
$1,617
|
|
|
40%
|
|
|
14%
|
|
|
16%
|
|
Total Bookings
|
|
|
$4,521
|
|
|
|
|
|
$4,082
|
|
|
|
|
|
11%
|
|
|
11%
|
|
**CC: Constant Currency
|
|
|
•
|
|
The decrease in revenue was primarily attributable to a decrease in
fiscal 2014 and prior period Enterprise Solutions new product sales.
|
|
|
|
•
|
|
The increase in the Company's full year bookings was primarily due
to a year-over-year increase in renewals within subscription and
maintenance bookings. This was partially offset by a decrease in
total new product and Mainframe Solutions capacity sales.
|
|
|
|
•
|
|
The Company executed a total of 54 license agreements with
incremental contract values in excess of $10 million each, for an
aggregate contract value of $1.973 billion. During fiscal 2013, the
Company executed a total of 52 license agreements with incremental
contract values in excess of $10 million each, for an aggregate
contract value of $1.514 billion.
|
|
|
|
•
|
|
The weighted average duration of subscription and maintenance
bookings for fiscal 2014 was 3.35 years, compared with 3.27 years
for fiscal 2013.
|
|
|
|
EXPENSES AND MARGIN
Fourth Quarter
|
|
|
|
(dollars in millions)
|
|
|
Fourth Quarter FY14 vs. FY13
|
|
|
FY14
|
|
|
FY13
|
|
|
% Change
|
|
|
% Change CC**
|
GAAP
|
|
|
|
Operating Expenses Before Interest and Income Taxes
|
|
|
$918
|
|
|
$875
|
|
|
5%
|
|
|
4%
|
Operating Income Before Interest and Income Taxes
|
|
|
$190
|
|
|
$268
|
|
|
(29)%
|
|
|
(24)%
|
Operating Margin
|
|
|
17%
|
|
|
23%
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
40.6%
|
|
|
7.4%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP*
|
|
|
|
Operating Expenses Before Interest and Income Taxes
|
|
|
$781
|
|
|
$766
|
|
|
2%
|
|
|
2%
|
Operating Income Before Interest and Income Taxes
|
|
|
$327
|
|
|
$377
|
|
|
(13)%
|
|
|
(10)%
|
Operating Margin
|
|
|
30%
|
|
|
33%
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
12.2%
|
|
|
16.7%
|
|
|
|
|
|
|
|
*A reconciliation of non-GAAP financial measures to their comparable
GAAP financial measures is included in the tables following this news
release. Year-over-year non-GAAP results exclude purchased software and
other intangibles amortization, share-based compensation, capitalization
(an add-back) and amortization of internal software costs, Board
approved rebalancing initiatives, and certain other gains and losses.
The results also 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.
**CC: Constant Currency
|
|
|
•
|
|
GAAP operating income was negatively affected by $38 million, or
$0.08 per diluted share, as a result of a decrease in the amount of
capitalized software development costs. In addition, GAAP operating
income was negatively affected by $37 million, or $0.07 per diluted
share, as a result of costs associated with the Company's fiscal
2014 rebalancing plan (the Fiscal 2014 Plan).
|
|
|
|
•
|
|
This negative effect was partially offset by an impairment of $55
million, or $0.11 per diluted share, related to purchased software
products recognized in the fourth quarter of fiscal 2013.
|
|
|
|
•
|
|
The decline in non-GAAP operating income was driven by an increase
in external consulting and promotional expenses, and was partially
offset by lower personnel costs.
|
|
|
|
•
|
|
GAAP EPS was negatively affected by $0.13 due to a higher effective
tax rate. Non-GAAP EPS was positively affected by $0.03 due to a
lower effective tax rate.
|
|
|
|
Full Year
|
(dollars in millions)
|
|
|
Full Year FY14 vs. FY13
|
|
|
FY14
|
|
|
FY13
|
|
|
% Change
|
|
|
% Change CC**
|
GAAP
|
|
|
|
Operating Expenses Before Interest and Income Taxes
|
|
|
$3,422
|
|
|
$3,273
|
|
|
5%
|
|
|
5%
|
Operating Income Before Interest and Income Taxes
|
|
|
$1,093
|
|
|
$1,337
|
|
|
(18)%
|
|
|
(17)%
|
Operating Margin
|
|
|
24%
|
|
|
29%
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
13.5%
|
|
|
27.4%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP*
|
|
|
|
Operating Expenses Before Interest and Income Taxes
|
|
|
$2,858
|
|
|
$2,985
|
|
|
(4)%
|
|
|
(4)%
|
Operating Income Before Interest and Income Taxes
|
|
|
$1,657
|
|
|
$1,625
|
|
|
2%
|
|
|
3%
|
Operating Margin
|
|
|
37%
|
|
|
35%
|
|
|
|
|
|
|
Effective Tax Rate
|
|
|
13.5%
|
|
|
27.4%
|
|
|
|
|
|
|
|
*A reconciliation of non-GAAP financial measures to their comparable
GAAP financial measures is included in the tables following this news
release. Year-over-year non-GAAP results exclude purchased software and
other intangibles amortization, share-based compensation, capitalization
(an add-back) and amortization of internal software costs, Board
approved rebalancing initiatives and certain other gains and losses.
**CC: Constant Currency
|
|
|
•
|
|
GAAP operating income was negatively affected by $171 million, or
$0.27 per diluted share, as a result of expenses associated with the
Fiscal 2014 Plan. In addition, GAAP operating income was negatively
affected by $128 million, or $0.20 per diluted share, as a result of
a decrease in the amount of capitalized software development costs.
|
|
|
|
•
|
|
Fiscal 2013 GAAP earnings included an impairment of $55 million, or
$0.09 per diluted share, related to purchased software products
recognized in the fourth quarter of fiscal 2013.
|
|
|
|
•
|
|
GAAP and non-GAAP operating expenses were positively affected by
lower personnel costs, primarily within selling and marketing.
|
|
|
|
•
|
|
GAAP and non-GAAP EPS were positively affected by $0.31 and $0.48,
respectively, due to a lower effective tax rate. The Company
recognized a net benefit of approximately $168 million in fiscal
2014, primarily from the resolution of uncertain tax positions
relating to U.S. and non-U.S. jurisdictions.
|
|
|
|
SEGMENT INFORMATION
Starting in the first quarter of fiscal 2014, the measure of segment
expenses and segment profit was revised to treat all costs of internal
software development as segment expense in the period the costs are
incurred. As a result, the Company will add back capitalized internal
software costs and exclude amortization of internally developed software
costs previously capitalized from segment expenses. Segment expenses
also exclude the effects of the Fiscal 2014 Plan. Prior period segment
expenses and profit information have been revised to present segment
profit and expenses on a consistent basis.
Fourth Quarter
|
|
|
|
(dollars in millions)
|
|
|
Fourth Quarter FY14 vs. FY13
|
|
|
Revenue
|
|
|
% Change
|
|
|
% Change CC**
|
|
|
Operating Margin
|
|
|
FY14
|
|
|
FY13
|
|
|
|
|
|
|
FY14
|
|
|
FY13
|
Mainframe Solutions
|
|
|
$613
|
|
|
$620
|
|
|
(1)%
|
|
|
0%
|
|
|
55%
|
|
|
57%
|
Enterprise Solutions
|
|
|
$405
|
|
|
$424
|
|
|
(4)%
|
|
|
(4)%
|
|
|
(2)%
|
|
|
3%
|
Services
|
|
|
$90
|
|
|
$99
|
|
|
(9)%
|
|
|
(7)%
|
|
|
1%
|
|
|
10%
|
**CC: Constant Currency
|
|
|
•
|
|
The decrease in Enterprise Solutions revenue and operating margin
was primarily due to lower new product sales in both the current and
prior fiscal year.
|
|
|
|
•
|
|
The decrease in Services revenue was primarily due to a decrease in
engagements relating to customer education and government agencies.
|
|
|
|
Full Year
|
(dollars in millions)
|
|
|
Full Year FY14 vs. FY13
|
|
|
Revenue
|
|
|
% Change
|
|
|
% Change CC**
|
|
|
Operating Margin
|
|
|
FY14
|
|
|
FY13
|
|
|
|
|
|
|
FY14
|
|
|
FY13
|
Mainframe Solutions
|
|
|
$2,478
|
|
|
$2,489
|
|
|
0%
|
|
|
0%
|
|
|
60%
|
|
|
59%
|
Enterprise Solutions
|
|
|
$1,658
|
|
|
$1,739
|
|
|
(5)%
|
|
|
(4)%
|
|
|
9%
|
|
|
8%
|
Services
|
|
|
$379
|
|
|
$382
|
|
|
(1)%
|
|
|
0%
|
|
|
6%
|
|
|
6%
|
**CC: Constant Currency
•
|
|
Enterprise Solutions revenue decreased compared with the year-ago
period primarily due to a decrease in new product sales in both the
current and prior fiscal year.
|
CASH FLOW FROM OPERATIONS
•
|
|
Cash flow from continuing operations in the fourth quarter was $483
million, compared with $565 million in the prior year. The decrease
year-over-year was due to a decrease in cash collections from single
installment payments of $90 million, payments related to the Fiscal
2014 Plan and a reduction in capitalized software development costs.
|
|
|
|
•
|
|
For the full year, cash flow from continuing operations was $997
million, compared with $1.390 billion in the prior year. The
decrease year-over-year was due to a decrease in cash collections
and a number of expected factors including higher cash taxes,
payments related to the Fiscal 2014 Plan and a reduction in
capitalized software development costs. The decrease in cash
collections was primarily due to a decrease in cash collections from
single installment payments of $170 million.
|
|
|
|
CAPITAL STRUCTURE
•
|
|
Cash, cash equivalents and investments at March 31, 2014 were $3.252
billion.
|
|
|
|
•
|
|
With $1.766 billion in total debt outstanding and $139 million in
notional pooling, the Company’s net cash, cash equivalents and
investments position was $1.347 billion.
|
|
|
|
•
|
|
In the fourth quarter of fiscal 2014, the Company repurchased more
than 5 million shares of stock for $167 million. For fiscal 2014,
the Company repurchased 16 million shares of stock for $505 million.
|
|
|
|
•
|
|
At March 31, 2014, the Company has completed the purchases of its
common stock under its stock repurchase program that was authorized
in January 2012.
|
|
|
|
•
|
|
During the fourth quarter of fiscal 2014, the Company distributed
$112 million in dividends to shareholders. For fiscal 2014, the
Company distributed $453 million in dividends to shareholders.
|
|
|
|
•
|
|
The Company’s outstanding share count at March 31, 2014 was 439
million.
|
|
|
|
NEW AUTHORIZED SHARE REPURCHASE PROGRAM
On May 14, 2014, the Company's Board of Directors approved a stock
repurchase program that authorized the Company to acquire up to $1
billion of CA common stock. The Company expects to complete the program
in approximately three years. The Company expects to fund the program
with available cash on hand and repurchase shares on the open market,
through solicited or unsolicited privately negotiated transactions or
otherwise, from time to time, based on market conditions and other
factors.
OUTLOOK FOR FISCAL 2015
The following outlook for fiscal 2015 contains "forward-looking
statements" (as defined below).
The Company expects the following:
•
|
|
Total revenue to decrease in a range of minus 2 percent to minus 1
percent in constant currency. At March 31, 2014 exchange rates, this
translates to reported revenue of $4.43 billion to $4.49 billion.
|
|
|
|
•
|
|
GAAP diluted earnings per share from continuing operations to
decrease in a range of minus 12 percent to minus 8 percent in
constant currency. At March 31, 2014 exchange rates, this translates
to reported GAAP diluted earnings per share of $1.79 to $1.86.
|
|
|
|
•
|
|
Non-GAAP diluted earnings per share from continuing operations to
decrease in a range of minus 21 percent to minus 19 percent in
constant currency. At March 31, 2014 exchange rates, this translates
to reported non-GAAP diluted earnings per share of $2.45 to $2.52.
|
|
|
|
•
|
|
Cash flow from continuing operations to increase in a range of 5
percent to 12 percent in constant currency. At March 31, 2014
exchange rates, this translates to reported cash flow from
continuing operations of $1.06 billion to $1.13 billion.
|
|
|
|
This outlook assumes no material acquisitions and a partial currency
hedge of operating income. The Company expects a full-year GAAP
operating margin of 28 percent and non-GAAP operating margin of 37
percent. The Company also expects to return to a normalized full-year
GAAP and non-GAAP effective tax rate of about 30 percent, which results
in a negative impact to GAAP and non-GAAP diluted earnings per share
from continuing operations of approximately $0.42 and $0.58,
respectively.
The Company anticipates approximately 436 million shares outstanding at
fiscal 2015 year-end and weighted average diluted shares outstanding of
approximately 442 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 live
webcast that the Company will host at 8:30 a.m. ET today to discuss its
unaudited fourth quarter and full fiscal year results. The webcast will
be archived on the website. Individuals can access the webcast, as well
as the press release and supplemental financial information at http://ca.com/invest
or can listen to the call at 1-877-561-2748. The international
participant number is 1-720-545-0044.
About CA Technologies
CA Technologies (NASDAQ: CA) provides IT management solutions that help
customers manage and secure complex IT environments to support agile
business services. Organizations leverage CA Technologies software and
SaaS solutions to accelerate innovation, transform infrastructure and
secure data and identities, from the data center to the cloud. Learn
more about CA Technologies at www.ca.com.
Follow CA Technologies
• Twitter
• Social Media Page
• Press Releases
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, include 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 continuing operations and diluted earnings per share
exclude the following items: non-cash amortization of purchased software
and other intangibles, share-based compensation, fiscal 2007
restructuring costs, recoveries and certain costs associated with
derivative litigation matters and certain other gains and losses, which
include 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. The Company will expense costs for internally
developed software where development efforts commenced in the first
quarter of fiscal 2014 and afterwards. As a result, product development
and enhancement expenses are expected to increase in future periods as
the amount capitalized for internally developed software costs
decreases. Due to this change, the Company will also add back
capitalized internal software costs and exclude the amortization of
internal software costs from these non-GAAP metrics. Also beginning in
the first quarter of fiscal 2014, the Company will exclude charges
relating to rebalancing initiatives that are large enough to require
approval from the Company's Board of Directors. 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 continuing operations, respectively. These 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 in which such items arise and the effective tax rate
for non-GAAP generally allocating the impact of discrete items pro rata
to the fiscal year's remaining reporting periods. Adjusted cash flow
from operations excludes payments associated with the fiscal 2014
Board-approved rebalancing initiative as described above, capitalized
software development costs as described above, and restructuring and
other payments. Free cash flow excludes purchases of property and
equipment and capitalized software development costs. The Company
presents constant currency information to provide a framework for
assessing how the Company's 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 U.S. dollars are converted into U.S.
dollars at the exchange rate in effect on the last day of the Company's
prior fiscal year (i.e., March 31, 2014, March 31, 2013, March 31, 2012
and March 31, 2011, respectively). 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
The declaration and payment of future dividends is subject to the
determination of the Company's Board of Directors, in its sole
discretion, after considering various factors, including the Company's
financial condition, historical and forecast operating results, and
available cash flow, as well as any applicable laws and contractual
covenants and any other relevant factors. The Company's practice
regarding payment of dividends may be modified at any time and from time
to time.
Repurchases under the Company's stock repurchase program are expected to
be made with cash on hand and may be made from time to time, subject to
market conditions and other factors, in the open market, through
solicited or unsolicited privately negotiated transactions or otherwise.
The program does not obligate the Company to acquire any particular
amount of common stock, and it may be modified or suspended at any time
at the Company's discretion.
Certain statements in this communication (such as statements containing
the words "believes," "plans," "anticipates," "expects," "estimates,"
"targets" and similar expressions relating to the future) 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, effectively managing the Company's sales force to
enable the Company to maintain and enhance its strong relationships in
its traditional customer base and to increase penetration and accelerate
growth in customer segments and geographic regions where the Company
currently may not have a strong presence or the Company has underserved,
enabling the sales force to sell new products, improving the Company's
brand, technology and innovation awareness in the marketplace and
ensuring the Company's set of cloud computing, application development
and IT operations (DevOps), Software-as-a-Service, mobile device
management 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; the
failure to innovate and/or adapt to technological changes and introduce
new software products and services in a timely manner; competition in
product and service offerings and pricing; the failure to expand partner
programs; the ability to retain and attract adequate qualified
personnel; the ability of the Company's products to remain compatible
with ever-changing operating environments, platforms or third party
products; the ability to successfully integrate acquired companies and
products into the Company's existing business; the ability to adequately
manage, evolve and protect the Company's information systems,
infrastructure and processes; risks associated with sales to government
customers; breaches of the Company's data center, network and software
products, and the IT environments of the Company's vendors and
customers; discovery of errors or omissions in the Company's software
products or documentation and potential product liability claims; the
failure to protect the Company's intellectual property rights and source
code; events or circumstances that would require the Company to record
an impairment charge relating to the Company's goodwill or capitalized
software and other intangible assets balances; access to software
licensed from third parties; risks associated with the use of software
from open source code sources; third-party claims of intellectual
property infringement or royalty payments; fluctuations in the number,
terms and duration of the Company's license agreements as well as the
timing of orders from customers and channel partners; the failure to
renew large license transactions on a satisfactory basis; potential tax
liabilities; changes in market conditions or the Company's credit
ratings; fluctuations in foreign currencies; the failure to effectively
execute the Company's workforce reductions, workforce rebalancing and
facilities consolidations; successful and secure outsourcing of various
functions to third parties; and other factors described more fully in
the Company's filings with the Securities and Exchange Commission.
Should one or more of these risks or uncertainties occur, or should the
Company's assumptions prove incorrect, actual results may vary
materially from those described herein as believed, planned,
anticipated, expected, estimated, targeted or similarly expressed in a
forward-looking manner. 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 © 2014 CA, Inc. All Rights Reserved. All other trademarks,
trade names, service marks, and logos referenced herein belong to their
respective companies.
|
Table 1
|
CA Technologies
|
Consolidated Statements of Operations
|
(unaudited)
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
|
|
|
|
March 31,
|
|
|
March 31,
|
Revenue:
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Subscription and maintenance
|
|
|
|
$
|
925
|
|
|
$
|
946
|
|
|
$
|
3,747
|
|
|
$
|
3,833
|
|
Professional services
|
|
|
|
|
90
|
|
|
|
99
|
|
|
|
379
|
|
|
|
382
|
|
Software fees and other
|
|
|
|
|
93
|
|
|
|
98
|
|
|
|
389
|
|
|
|
395
|
|
Total revenue
|
|
|
|
$
|
1,108
|
|
|
$
|
1,143
|
|
|
$
|
4,515
|
|
|
$
|
4,610
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of licensing and maintenance
|
|
|
|
$
|
82
|
|
|
$
|
74
|
|
|
$
|
303
|
|
|
$
|
282
|
|
Cost of professional services
|
|
|
|
|
89
|
|
|
|
88
|
|
|
|
353
|
|
|
|
354
|
|
Amortization of capitalized software costs (1)
|
|
|
|
|
69
|
|
|
|
121
|
|
|
|
282
|
|
|
|
317
|
|
Selling and marketing
|
|
|
|
|
318
|
|
|
|
323
|
|
|
|
1,150
|
|
|
|
1,273
|
|
General and administrative
|
|
|
|
|
118
|
|
|
|
101
|
|
|
|
395
|
|
|
|
405
|
|
Product development and enhancements
|
|
|
|
|
159
|
|
|
|
121
|
|
|
|
587
|
|
|
|
489
|
|
Depreciation and amortization of other intangible assets
|
|
|
|
|
31
|
|
|
|
38
|
|
|
|
144
|
|
|
|
158
|
|
Other (gains) expenses, net (2)
|
|
|
|
|
52
|
|
|
|
9
|
|
|
|
208
|
|
|
|
(5
|
)
|
Total expenses before interest and income taxes
|
|
|
|
$
|
918
|
|
|
$
|
875
|
|
|
$
|
3,422
|
|
|
$
|
3,273
|
|
Income from continuing operations before interest and income taxes
|
|
|
|
$
|
190
|
|
|
$
|
268
|
|
|
$
|
1,093
|
|
|
$
|
1,337
|
|
Interest expense, net
|
|
|
|
|
15
|
|
|
|
11
|
|
|
|
54
|
|
|
|
44
|
|
Income from continuing operations before income taxes
|
|
|
|
$
|
175
|
|
|
$
|
257
|
|
|
$
|
1,039
|
|
|
$
|
1,293
|
|
Income tax expense
|
|
|
|
|
71
|
|
|
|
19
|
|
|
|
140
|
|
|
|
354
|
|
Income from continuing operations
|
|
|
|
$
|
104
|
|
|
$
|
238
|
|
|
$
|
899
|
|
|
$
|
939
|
|
Income from discontinued operations, net of income taxes
|
|
|
|
|
3
|
|
|
|
4
|
|
|
|
15
|
|
|
|
16
|
|
Net income
|
|
|
|
$
|
107
|
|
|
$
|
242
|
|
|
$
|
914
|
|
|
$
|
955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
$
|
0.23
|
|
|
$
|
0.52
|
|
|
$
|
2.00
|
|
|
$
|
2.03
|
|
Income from discontinued operations
|
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.04
|
|
Net income
|
|
|
|
$
|
0.24
|
|
|
$
|
0.53
|
|
|
$
|
2.03
|
|
|
$
|
2.07
|
|
Basic weighted average shares used in computation
|
|
|
|
|
442
|
|
|
|
449
|
|
|
|
446
|
|
|
|
456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
$
|
0.23
|
|
|
$
|
0.52
|
|
|
$
|
1.99
|
|
|
$
|
2.03
|
|
Income from discontinued operations
|
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.04
|
|
Net income
|
|
|
|
$
|
0.24
|
|
|
$
|
0.53
|
|
|
$
|
2.02
|
|
|
$
|
2.07
|
|
Diluted weighted average shares used in computation
|
|
|
|
|
444
|
|
|
|
450
|
|
|
|
448
|
|
|
|
457
|
|
(1)
|
|
Amortization of capitalized software costs includes an impairment of
$55 million relating to purchased software products, for the three
and twelve month periods ending March 31, 2013.
|
|
|
|
(2)
|
|
Other (gains) expenses, net includes approximately $37 million and
$171 million of charges relating to the FY2014 Board approved
re-balancing initiative (the Fiscal 2014 Plan), for the three and
twelve month periods ending March 31, 2014, respectively.
|
|
|
|
|
|
Prior year results have been adjusted to reflect the discontinued
operations associated with the sale of the CA ERwin Data Modeling
business.
|
|
|
|
|
Table 2
|
CA Technologies
|
Condensed Consolidated Balance Sheets
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
March 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
3,252
|
|
|
|
$
|
2,593
|
|
|
Short-term investments
|
|
|
|
|
-
|
|
|
|
|
183
|
|
|
Trade accounts receivable, net
|
|
|
|
|
800
|
|
|
|
|
856
|
|
|
Deferred income taxes
|
|
|
|
|
315
|
|
|
|
|
346
|
|
|
Other current assets
|
|
|
|
|
192
|
|
|
|
|
148
|
|
|
Total current assets
|
|
|
|
$
|
4,559
|
|
|
|
$
|
4,126
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
$
|
295
|
|
|
|
$
|
311
|
|
|
Goodwill
|
|
|
|
|
5,922
|
|
|
|
|
5,864
|
|
|
Capitalized software and other intangible assets, net
|
|
|
|
|
1,063
|
|
|
|
|
1,242
|
|
|
Deferred income taxes
|
|
|
|
|
59
|
|
|
|
|
77
|
|
|
Other noncurrent assets, net
|
|
|
|
|
118
|
|
|
|
|
195
|
|
|
Total assets
|
|
|
|
$
|
12,016
|
|
|
|
$
|
11,815
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
|
$
|
514
|
|
|
|
$
|
16
|
|
|
Deferred revenue (billed or collected)
|
|
|
|
|
2,459
|
|
|
|
|
2,465
|
|
|
Deferred income taxes
|
|
|
|
|
9
|
|
|
|
|
12
|
|
|
Other current liabilities
|
|
|
|
|
940
|
|
|
|
|
1,048
|
|
|
Total current liabilities
|
|
|
|
$
|
3,922
|
|
|
|
$
|
3,541
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of current portion
|
|
|
|
$
|
1,252
|
|
|
|
$
|
1,274
|
|
|
Deferred income taxes
|
|
|
|
|
67
|
|
|
|
|
124
|
|
|
Deferred revenue (billed or collected)
|
|
|
|
|
890
|
|
|
|
|
969
|
|
|
Other noncurrent liabilities
|
|
|
|
|
315
|
|
|
|
|
457
|
|
|
Total liabilities
|
|
|
|
$
|
6,446
|
|
|
|
$
|
6,365
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
$
|
59
|
|
|
|
$
|
59
|
|
|
Additional paid-in capital
|
|
|
|
|
3,610
|
|
|
|
|
3,593
|
|
|
Retained earnings
|
|
|
|
|
5,818
|
|
|
|
|
5,357
|
|
|
Accumulated other comprehensive loss
|
|
|
|
|
(171
|
)
|
|
|
|
(155
|
)
|
|
Treasury stock
|
|
|
|
|
(3,746
|
)
|
|
|
|
(3,404
|
)
|
|
Total stockholders’ equity
|
|
|
|
$
|
5,570
|
|
|
|
$
|
5,450
|
|
|
Total liabilities and stockholders’ equity
|
|
|
|
$
|
12,016
|
|
|
|
$
|
11,815
|
|
|
|
|
|
|
|
|
|
|
|
Table 3
|
CA Technologies
|
Condensed Consolidated Statements of Cash Flows
|
(unaudited)
|
(in millions)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
Operating activities from continuing operations:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
107
|
|
|
|
$
|
242
|
|
|
Income from discontinued operations
|
|
|
|
|
(3
|
)
|
|
|
|
(4
|
)
|
|
Income from continuing operations
|
|
|
|
$
|
104
|
|
|
|
$
|
238
|
|
|
Adjustments to reconcile income from continuing operations to net
cash provided
|
|
|
|
|
|
|
|
|
by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
100
|
|
|
|
|
159
|
|
|
Deferred income taxes
|
|
|
|
|
6
|
|
|
|
|
(33
|
)
|
|
Provision for bad debts
|
|
|
|
|
2
|
|
|
|
|
3
|
|
|
Share-based compensation expense
|
|
|
|
|
18
|
|
|
|
|
16
|
|
|
Asset impairments and other non-cash items
|
|
|
|
|
1
|
|
|
|
|
6
|
|
|
Foreign currency transaction losses (gains)
|
|
|
|
|
7
|
|
|
|
|
(3
|
)
|
|
Changes in other operating assets and liabilities, net of effect of
acquisitions:
|
|
|
|
|
|
|
|
|
Increase in trade accounts receivable
|
|
|
|
|
(91
|
)
|
|
|
|
(70
|
)
|
|
Increase in deferred revenue
|
|
|
|
|
326
|
|
|
|
|
292
|
|
|
Decrease in taxes payable, net
|
|
|
|
|
(84
|
)
|
|
|
|
(130
|
)
|
|
Increase in accounts payable, accrued expenses and other
|
|
|
|
|
62
|
|
|
|
|
43
|
|
|
Increase in accrued salaries, wages and commissions
|
|
|
|
|
29
|
|
|
|
|
24
|
|
|
Changes in other operating assets and liabilities
|
|
|
|
|
3
|
|
|
|
|
20
|
|
|
Net cash provided by operating activities - continuing operations
|
|
|
|
$
|
483
|
|
|
|
$
|
565
|
|
|
Investing activities from continuing operations:
|
|
|
|
|
|
|
|
|
Acquisitions of businesses, net of cash acquired, and purchased
software
|
|
|
|
$
|
(6
|
)
|
|
|
$
|
(58
|
)
|
|
Purchases of property and equipment
|
|
|
|
|
(13
|
)
|
|
|
|
(9
|
)
|
|
Capitalized software development costs
|
|
|
|
|
(1
|
)
|
|
|
|
(43
|
)
|
|
Maturities of investments
|
|
|
|
|
7
|
|
|
|
|
-
|
|
|
Decrease in restricted cash
|
|
|
|
|
50
|
|
|
|
|
-
|
|
|
Other investing activities
|
|
|
|
|
-
|
|
|
|
|
(1
|
)
|
|
Net cash provided by (used in) investing activities - continuing
operations
|
|
|
|
$
|
37
|
|
|
|
$
|
(111
|
)
|
|
Financing activities from continuing operations:
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
|
$
|
(112
|
)
|
|
|
$
|
(114
|
)
|
|
Purchases of common stock, including accelerated share repurchase
|
|
|
|
|
(167
|
)
|
|
|
|
(72
|
)
|
|
Notional pooling repayments, net
|
|
|
|
|
(6
|
)
|
|
|
|
-
|
|
|
Debt repayments
|
|
|
|
|
(3
|
)
|
|
|
|
(4
|
)
|
|
Exercise of common stock options and other
|
|
|
|
|
19
|
|
|
|
|
5
|
|
|
Net cash used in financing activities - continuing operations
|
|
|
|
$
|
(269
|
)
|
|
|
$
|
(185
|
)
|
|
Net change in cash and cash equivalents before effect of exchange
rate
changes on cash - continuing operations
|
|
|
|
$
|
251
|
|
|
|
$
|
269
|
|
|
Effect of exchange rate changes on cash
|
|
|
|
$
|
24
|
|
|
|
$
|
(34
|
)
|
|
Cash provided by operating activities - discontinued operations
|
|
|
|
$
|
3
|
|
|
|
$
|
5
|
|
|
Increase in cash and cash equivalents
|
|
|
|
$
|
278
|
|
|
|
$
|
240
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
$
|
2,974
|
|
|
|
$
|
2,353
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
3,252
|
|
|
|
$
|
2,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior year results have been adjusted to reflect the discontinued
operations associated with the sale of the CA ERwin Data Modeling
business.
|
Table 4
|
CA Technologies
|
Operating Segments
|
(unaudited)
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2014
|
|
Fiscal Year Ended March 31, 2014
|
|
|
|
Mainframe Solutions(1)
|
|
Enterprise Solutions (1)
|
|
Services (1)
|
|
Total
|
|
Mainframe Solutions (1)
|
|
Enterprise Solutions (1)
|
|
Services (1)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (2)
|
|
|
$
|
613
|
|
|
$
|
405
|
|
|
$
|
90
|
|
|
$
|
1,108
|
|
|
$
|
2,478
|
|
|
$
|
1,658
|
|
|
$
|
379
|
|
|
$
|
4,515
|
|
Expenses (3)
|
|
|
|
278
|
|
|
|
414
|
|
|
|
89
|
|
|
|
781
|
|
|
|
987
|
|
|
|
1,514
|
|
|
|
357
|
|
|
|
2,858
|
|
Segment profit
|
|
|
$
|
335
|
|
|
$
|
(9
|
)
|
|
$
|
1
|
|
|
$
|
327
|
|
|
$
|
1,491
|
|
|
$
|
144
|
|
|
$
|
22
|
|
|
$
|
1,657
|
|
Segment operating margin
|
|
|
|
55
|
%
|
|
|
(2
|
)%
|
|
|
1
|
%
|
|
|
30
|
%
|
|
|
60
|
%
|
|
|
9
|
%
|
|
|
6
|
%
|
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
|
|
|
|
|
|
|
|
$
|
327
|
|
|
|
|
|
|
|
|
$
|
1,657
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
|
|
|
|
|
|
|
29
|
|
|
|
|
|
|
|
|
|
117
|
|
Other intangibles amortization
|
|
|
|
|
|
|
|
|
|
12
|
|
|
|
|
|
|
|
|
|
60
|
|
Software development costs capitalized
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
(33
|
)
|
Internally developed software products amortization
|
|
|
|
|
|
|
|
|
|
40
|
|
|
|
|
|
|
|
|
|
165
|
|
Share-based compensation expense
|
|
|
|
|
|
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
82
|
|
Other (gains) expenses, net (4)
|
|
|
|
|
|
|
|
|
|
39
|
|
|
|
|
|
|
|
|
|
173
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
54
|
|
Income from continuing operations before income taxes
|
|
|
|
|
|
|
|
|
$
|
175
|
|
|
|
|
|
|
|
|
$
|
1,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2013
|
|
Fiscal Year Ended March 31, 2013
|
|
|
|
Mainframe Solutions (1)
|
|
Enterprise Solutions (1)
|
|
Services (1)
|
|
Total
|
|
Mainframe Solutions (1)
|
|
Enterprise Solutions (1)
|
|
Services (1)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (2)
|
|
|
$
|
620
|
|
|
$
|
424
|
|
|
$
|
99
|
|
|
$
|
1,143
|
|
|
$
|
2,489
|
|
|
$
|
1,739
|
|
|
$
|
382
|
|
|
$
|
4,610
|
|
Expenses (3)
|
|
|
|
264
|
|
|
|
413
|
|
|
|
89
|
|
|
|
766
|
|
|
|
1,028
|
|
|
|
1,599
|
|
|
|
358
|
|
|
|
2,985
|
|
Segment profit
|
|
|
$
|
356
|
|
|
$
|
11
|
|
|
$
|
10
|
|
|
$
|
377
|
|
|
$
|
1,461
|
|
|
$
|
140
|
|
|
$
|
24
|
|
|
$
|
1,625
|
|
Segment operating margin
|
|
|
|
57
|
%
|
|
|
3
|
%
|
|
|
10
|
%
|
|
|
33
|
%
|
|
|
59
|
%
|
|
|
8
|
%
|
|
|
6
|
%
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
|
|
|
|
|
|
|
|
$
|
377
|
|
|
|
|
|
|
|
|
$
|
1,625
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased software amortization (5)
|
|
|
|
|
|
|
|
|
|
83
|
|
|
|
|
|
|
|
|
|
163
|
|
Other intangibles amortization
|
|
|
|
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
54
|
|
Software development costs capitalized
|
|
|
|
|
|
|
|
|
|
(39
|
)
|
|
|
|
|
|
|
|
|
(161
|
)
|
Internally developed software products amortization
|
|
|
|
|
|
|
|
|
|
38
|
|
|
|
|
|
|
|
|
|
154
|
|
Share-based compensation expense
|
|
|
|
|
|
|
|
|
|
16
|
|
|
|
|
|
|
|
|
|
78
|
|
Other (gains) expenses, net (4)
|
|
|
|
|
|
|
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
-
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
44
|
|
Income from continuing operations before income taxes
|
|
|
|
|
|
|
|
|
$
|
257
|
|
|
|
|
|
|
|
|
$
|
1,293
|
|
|
|
|
(1)
|
|
The Company’s Mainframe Solutions and Enterprise Solutions segments
comprise its software business organized by the nature of the
Company’s software offerings and the platform on which the products
operate. The Services segment comprises product implementation,
consulting, customer education and customer training, including
those directly related to the Mainframe Solutions and Enterprise
Solutions software that the Company sells to its customers.
|
|
|
|
(2)
|
|
The Company regularly enters into a single arrangement with a
customer that includes mainframe solutions, enterprise solutions and
services. The amount of contract revenue assigned to operating
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 operating segment is then
recognized in a manner consistent with the revenue recognition
policies the Company applies to the customer contract for purposes
of preparing the 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 and general and
administrative costs. Allocated segment costs primarily include
indirect and non-segment specific direct 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 of cost of professional services and other
direct costs included within selling and marketing and general and
administrative expenses. There are no allocated or indirect costs
for the Services segment.
|
|
|
|
(4)
|
|
Other (gains) expenses, net includes charges relating to the FY2014
Board approved re-balancing initiative (the Fiscal 2014 Plan),
certain foreign exchange derivative hedging gains and losses, and
other miscellaneous costs.
|
|
|
|
(5)
|
|
Purchased software amortization includes an impairment of $55
million relating to purchased software products, for the three and
twelve month periods ending March 31, 2013.
|
|
|
|
|
|
Prior year results have been adjusted to reflect the discontinued
operations associated with the sale of the CA ERwin Data Modeling
business and for internally developed software.
|
|
|
|
|
Table 5
|
CA Technologies
|
Constant Currency Summary
|
(unaudited)
|
(dollars in millions)
|
|
|
|
|
Three Months Ended March 31,
|
|
Fiscal Year Ended March 31,
|
|
|
|
2014
|
|
2013
|
|
% Increase (Decrease) in $ US
|
|
% Increase (Decrease) in Constant Currency (1)
|
|
2014
|
|
2013
|
|
% Increase (Decrease) in $ US
|
|
% Increase (Decrease) in Constant Currency (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
|
|
$
|
1,241
|
|
$
|
1,452
|
|
(15
|
)%
|
|
(15
|
)%
|
|
$
|
4,521
|
|
$
|
4,082
|
|
11
|
%
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
699
|
|
$
|
716
|
|
(2
|
)%
|
|
(2
|
)%
|
|
$
|
2,852
|
|
$
|
2,893
|
|
(1
|
)%
|
|
(1
|
)%
|
International
|
|
|
|
409
|
|
|
427
|
|
(4
|
)%
|
|
(2
|
)%
|
|
|
1,663
|
|
|
1,717
|
|
(3
|
)%
|
|
(1
|
)%
|
Total revenue
|
|
|
$
|
1,108
|
|
$
|
1,143
|
|
(3
|
)%
|
|
(2
|
)%
|
|
$
|
4,515
|
|
$
|
4,610
|
|
(2
|
)%
|
|
(1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and maintenance
|
|
|
$
|
925
|
|
$
|
946
|
|
(2
|
)%
|
|
(1
|
)%
|
|
$
|
3,747
|
|
$
|
3,833
|
|
(2
|
)%
|
|
(2
|
)%
|
Professional services
|
|
|
|
90
|
|
|
99
|
|
(9
|
)%
|
|
(7
|
)%
|
|
|
379
|
|
|
382
|
|
(1
|
)%
|
|
0
|
%
|
Software fees and other
|
|
|
|
93
|
|
|
98
|
|
(5
|
)%
|
|
(3
|
)%
|
|
|
389
|
|
|
395
|
|
(2
|
)%
|
|
0
|
%
|
Total revenue
|
|
|
$
|
1,108
|
|
$
|
1,143
|
|
(3
|
)%
|
|
(2
|
)%
|
|
$
|
4,515
|
|
$
|
4,610
|
|
(2
|
)%
|
|
(1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainframe solutions
|
|
|
$
|
613
|
|
$
|
620
|
|
(1
|
)%
|
|
0
|
%
|
|
$
|
2,478
|
|
$
|
2,489
|
|
0
|
%
|
|
0
|
%
|
Enterprise solutions
|
|
|
|
405
|
|
|
424
|
|
(4
|
)%
|
|
(4
|
)%
|
|
|
1,658
|
|
|
1,739
|
|
(5
|
)%
|
|
(4
|
)%
|
Services
|
|
|
|
90
|
|
|
99
|
|
(9
|
)%
|
|
(7
|
)%
|
|
|
379
|
|
|
382
|
|
(1
|
)%
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses before interest and income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP (2)
|
|
|
$
|
781
|
|
$
|
766
|
|
2
|
%
|
|
2
|
%
|
|
$
|
2,858
|
|
$
|
2,985
|
|
(4
|
)%
|
|
(4
|
)%
|
Total GAAP (3)
|
|
|
|
918
|
|
|
875
|
|
5
|
%
|
|
4
|
%
|
|
|
3,422
|
|
|
3,273
|
|
5
|
%
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Constant currency information is presented to provide a framework
for assessing how the Company's 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, 2013, which was the last day of the prior fiscal year.
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.
|
|
|
|
(3)
|
|
Total GAAP expenses include an impairment of $55 million relating to
purchased software products, for the three and twelve month periods
ending March 31, 2013.
|
|
|
|
|
|
Prior year results have been adjusted to reflect the discontinued
operations associated with the sale of the CA ERwin Data Modeling
business and for internally developed software.
|
|
|
|
|
|
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
|
(unaudited)
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
|
|
|
|
March 31,
|
|
|
March 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
GAAP net income
|
|
|
|
$
|
107
|
|
|
|
$
|
242
|
|
|
|
$
|
914
|
|
|
|
$
|
955
|
|
GAAP income from discontinued operations, net of income taxes
|
|
|
|
|
(3
|
)
|
|
|
|
(4
|
)
|
|
|
|
(15
|
)
|
|
|
|
(16
|
)
|
GAAP income from continuing operations
|
|
|
|
$
|
104
|
|
|
|
$
|
238
|
|
|
|
$
|
899
|
|
|
|
$
|
939
|
|
GAAP income tax expense
|
|
|
|
|
71
|
|
|
|
|
19
|
|
|
|
|
140
|
|
|
|
|
354
|
|
Interest expense, net
|
|
|
|
|
15
|
|
|
|
|
11
|
|
|
|
|
54
|
|
|
|
|
44
|
|
GAAP income from continuing operations before interest and income
taxes
|
|
|
|
$
|
190
|
|
|
|
$
|
268
|
|
|
|
$
|
1,093
|
|
|
|
$
|
1,337
|
|
GAAP operating margin (% of revenue) (1)
|
|
|
|
|
17
|
%
|
|
|
|
23
|
%
|
|
|
|
24
|
%
|
|
|
|
29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments to expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs of licensing and maintenance (2)
|
|
|
|
$
|
1
|
|
|
|
$
|
1
|
|
|
|
$
|
4
|
|
|
|
$
|
3
|
|
Cost of professional services (2)
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
4
|
|
|
|
|
4
|
|
Amortization of capitalized software costs (3)
|
|
|
|
|
69
|
|
|
|
|
121
|
|
|
|
|
282
|
|
|
|
|
317
|
|
Selling and marketing (2)
|
|
|
|
|
6
|
|
|
|
|
7
|
|
|
|
|
29
|
|
|
|
|
31
|
|
General and administrative (2)
|
|
|
|
|
6
|
|
|
|
|
2
|
|
|
|
|
26
|
|
|
|
|
23
|
|
Product development and enhancements (4)
|
|
|
|
|
3
|
|
|
|
|
(34
|
)
|
|
|
|
(14
|
)
|
|
|
|
(144
|
)
|
Depreciation and amortization of other intangible assets (5)
|
|
|
|
|
12
|
|
|
|
|
13
|
|
|
|
|
60
|
|
|
|
|
54
|
|
Other (gains) expenses, net (6)
|
|
|
|
|
39
|
|
|
|
|
(2
|
)
|
|
|
|
173
|
|
|
|
|
-
|
|
Total Non-GAAP adjustment to operating expenses
|
|
|
|
$
|
137
|
|
|
|
$
|
109
|
|
|
|
$
|
564
|
|
|
|
$
|
288
|
|
Non-GAAP income from continuing operations before interest and
income taxes
|
|
|
|
$
|
327
|
|
|
|
$
|
377
|
|
|
|
$
|
1,657
|
|
|
|
$
|
1,625
|
|
Non-GAAP operating margin (% of revenue) (7)
|
|
|
|
|
30
|
%
|
|
|
|
33
|
%
|
|
|
|
37
|
%
|
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
|
15
|
|
|
|
|
11
|
|
|
|
|
54
|
|
|
|
|
44
|
|
GAAP income tax expense
|
|
|
|
|
71
|
|
|
|
|
19
|
|
|
|
|
140
|
|
|
|
|
354
|
|
Non-GAAP adjustment to income tax expense (8)
|
|
|
|
|
(33
|
)
|
|
|
|
42
|
|
|
|
|
76
|
|
|
|
|
79
|
|
Non-GAAP income tax expense
|
|
|
|
$
|
38
|
|
|
|
$
|
61
|
|
|
|
$
|
216
|
|
|
|
$
|
433
|
|
Non-GAAP income from continuing operations
|
|
|
|
$
|
274
|
|
|
|
$
|
305
|
|
|
|
$
|
1,387
|
|
|
|
$
|
1,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
For the three month periods ending March 31, 2014 and 2013, non-GAAP
adjustment consists of $29 million and $83 million of purchased
software amortization and $40 million and $38 million of internally
developed software products amortization, respectively. For the
twelve month periods ending March 31, 2014 and 2013, non-GAAP
adjustment consists of $117 million and $163 million of purchased
software amortization and $165 million and $154 million of
internally developed software products amortization, respectively.
Purchased software amortization includes an impairment of $55
million relating to purchased software products, for the three and
twelve month periods ending March 31, 2013.
|
|
|
|
(4)
|
|
For the three month periods ending March 31, 2014 and 2013, non-GAAP
adjustment consists of $4 million and $5 million of share-based
compensation and ($1) million and ($39) million of software
development costs capitalized, respectively. For the twelve month
periods ending March 31, 2014 and 2013, non-GAAP adjustment consists
of $19 million and $17 million of share-based compensation and ($33)
million and ($161) million of software development costs
capitalized, respectively.
|
|
|
|
(5)
|
|
Non-GAAP adjustment consists of other intangibles amortization.
|
|
|
|
(6)
|
|
Non-GAAP adjustment consists of charges relating to the FY2014 Board
approved re-balancing initiative (the Fiscal 2014 Plan) and certain
other gains and losses, including gains and losses since inception
of hedges that mature within the quarter, but excludes gains and
losses of hedges that do not mature within the quarter.
|
|
|
|
(7)
|
|
Non-GAAP operating margin is calculated by dividing non-GAAP income
from continuing operations before interest and income taxes by total
revenue (refer to 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 income taxes. 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 CA ERwin Data Modeling
business and for internally developed software.
|
|
|
|
|
|
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
|
(unaudited)
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
|
|
|
|
March 31,
|
|
|
March 31,
|
Operating Expenses
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses before interest and income taxes
|
|
|
|
$
|
918
|
|
|
|
$
|
875
|
|
|
|
$
|
3,422
|
|
|
|
$
|
3,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased software amortization (1)
|
|
|
|
|
29
|
|
|
|
|
83
|
|
|
|
|
117
|
|
|
|
|
163
|
|
Other intangibles amortization
|
|
|
|
|
12
|
|
|
|
|
13
|
|
|
|
|
60
|
|
|
|
|
54
|
|
Software development costs capitalized
|
|
|
|
|
(1
|
)
|
|
|
|
(39
|
)
|
|
|
|
(33
|
)
|
|
|
|
(161
|
)
|
Internally developed software products amortization
|
|
|
|
|
40
|
|
|
|
|
38
|
|
|
|
|
165
|
|
|
|
|
154
|
|
Share-based compensation
|
|
|
|
|
18
|
|
|
|
|
16
|
|
|
|
|
82
|
|
|
|
|
78
|
|
Other (gains) expenses, net (2)
|
|
|
|
|
39
|
|
|
|
|
(2
|
)
|
|
|
|
173
|
|
|
|
|
-
|
|
Total non-GAAP operating adjustment
|
|
|
|
$
|
137
|
|
|
|
$
|
109
|
|
|
|
$
|
564
|
|
|
|
$
|
288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP operating expenses
|
|
|
|
$
|
781
|
|
|
|
$
|
766
|
|
|
|
$
|
2,858
|
|
|
|
$
|
2,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
|
|
|
|
March 31,
|
|
|
March 31,
|
Diluted EPS from Continuing Operations
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted EPS from continuing operations
|
|
|
|
$
|
0.23
|
|
|
|
$
|
0.52
|
|
|
|
$
|
1.99
|
|
|
|
$
|
2.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments, net of taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased software amortization (1)
|
|
|
|
|
0.04
|
|
|
|
|
0.17
|
|
|
|
|
0.22
|
|
|
|
|
0.25
|
|
Other intangibles amortization
|
|
|
|
|
0.02
|
|
|
|
|
0.02
|
|
|
|
|
0.11
|
|
|
|
|
0.09
|
|
Software development costs capitalized
|
|
|
|
|
-
|
|
|
|
|
(0.08
|
)
|
|
|
|
(0.06
|
)
|
|
|
|
(0.25
|
)
|
Internally developed software products amortization
|
|
|
|
|
0.05
|
|
|
|
|
0.08
|
|
|
|
|
0.32
|
|
|
|
|
0.24
|
|
Share-based compensation
|
|
|
|
|
0.02
|
|
|
|
|
0.03
|
|
|
|
|
0.16
|
|
|
|
|
0.12
|
|
Other (gains) expenses, net (2)
|
|
|
|
|
0.05
|
|
|
|
|
-
|
|
|
|
|
0.33
|
|
|
|
|
-
|
|
Non-GAAP effective tax rate adjustments (3)
|
|
|
|
|
0.20
|
|
|
|
|
(0.07
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
Total non-GAAP adjustment
|
|
|
|
$
|
0.38
|
|
|
|
$
|
0.15
|
|
|
|
$
|
1.08
|
|
|
|
$
|
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted EPS from continuing operations
|
|
|
|
$
|
0.61
|
|
|
|
$
|
0.67
|
|
|
|
$
|
3.07
|
|
|
|
$
|
2.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Purchased software amortization includes an impairment of $55
million relating to purchased software products, for the three and
twelve month periods ending March 31, 2013.
|
|
|
|
(2)
|
|
Non-GAAP adjustment consists of charges relating to the FY2014 Board
approved re-balancing initiative (the Fiscal 2014 Plan) and certain
other gains and losses, including gains and losses since inception
of hedges that mature within the quarter, but excludes gains and
losses of hedges that do not mature within the quarter.
|
|
|
|
(3)
|
|
The non-GAAP effective tax rate is equal to the full year GAAP
effective tax rate, therefore no adjustment is required on an annual
basis. On an interim basis, the difference in non-GAAP income tax
expense and GAAP income tax expense relates to the difference in
non-GAAP income from continuing operations before income taxes, and
includes 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 purposes 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 CA ERwin Data Modeling
business and for internally developed software.
|
|
|
|
|
|
Certain non-material differences may arise versus actual from impact
of rounding.
|
|
|
|
|
Table 8
|
CA Technologies
|
Effective Tax Rate Reconciliation
|
GAAP and Non-GAAP
|
(unaudited)
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
|
|
|
|
|
March 31, 2014
|
|
|
March 31, 2014
|
|
|
|
|
|
GAAP
|
|
|
Non-GAAP
|
|
|
GAAP
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before interest and income taxes (1)
|
|
|
|
$
|
190
|
|
|
|
$
|
327
|
|
|
|
$
|
1,093
|
|
|
|
$
|
1,657
|
|
|
Interest expense, net
|
|
|
|
|
15
|
|
|
|
|
15
|
|
|
|
|
54
|
|
|
|
|
54
|
|
|
Income from continuing operations before income taxes
|
|
|
|
$
|
175
|
|
|
|
$
|
312
|
|
|
|
$
|
1,039
|
|
|
|
$
|
1,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate
|
|
|
|
|
35
|
%
|
|
|
|
35
|
%
|
|
|
|
35
|
%
|
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax at statutory rate
|
|
|
|
$
|
61
|
|
|
|
$
|
109
|
|
|
|
$
|
364
|
|
|
|
$
|
561
|
|
|
Adjustments for discrete and permanent items (2)
|
|
|
|
|
10
|
|
|
|
|
(71
|
)
|
|
|
|
(224
|
)
|
|
|
|
(345
|
)
|
|
Total tax expense
|
|
|
|
$
|
71
|
|
|
|
$
|
38
|
|
|
|
$
|
140
|
|
|
|
$
|
216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (3)
|
|
|
|
|
40.6
|
%
|
|
|
|
12.2
|
%
|
|
|
|
13.5
|
%
|
|
|
|
13.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Fiscal Year Ended
|
|
|
|
|
|
March 31, 2013
|
|
|
March 31, 2013
|
|
|
|
|
|
GAAP
|
|
|
Non-GAAP
|
|
|
GAAP
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before interest and income taxes (1)
|
|
|
|
$
|
268
|
|
|
|
$
|
377
|
|
|
|
$
|
1,337
|
|
|
|
$
|
1,625
|
|
|
Interest expense, net
|
|
|
|
|
11
|
|
|
|
|
11
|
|
|
|
|
44
|
|
|
|
|
44
|
|
|
Income from continuing operations before income taxes
|
|
|
|
$
|
257
|
|
|
|
$
|
366
|
|
|
|
$
|
1,293
|
|
|
|
$
|
1,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate
|
|
|
|
|
35
|
%
|
|
|
|
35
|
%
|
|
|
|
35
|
%
|
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax at statutory rate
|
|
|
|
$
|
90
|
|
|
|
$
|
128
|
|
|
|
$
|
453
|
|
|
|
$
|
553
|
|
|
Adjustments for discrete and permanent items (2)
|
|
|
|
|
(71
|
)
|
|
|
|
(67
|
)
|
|
|
|
(99
|
)
|
|
|
|
(120
|
)
|
|
Total tax expense
|
|
|
|
$
|
19
|
|
|
|
$
|
61
|
|
|
|
$
|
354
|
|
|
|
$
|
433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (3)
|
|
|
|
|
7.4
|
%
|
|
|
|
16.7
|
%
|
|
|
|
27.4
|
%
|
|
|
|
27.4
|
%
|
(1)
|
|
Refer to Table 6 for a reconciliation of income from continuing
operations before interest and income taxes on a GAAP basis to
income from continuing operations before interest and 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. The non-GAAP effective tax rate
is equal to the full year GAAP effective tax rate. On an interim
basis, the effective 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 CA ERwin Data Modeling
business and for internally developed software.
|
|
|
|
|
|
|
|
Certain non-material differences may arise versus actual from impact
of rounding.
|
|
|
Table 9
|
CA Technologies
|
Reconciliation of Projected GAAP Metrics to Projected Non-GAAP
Metrics
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ending
|
|
Projected Diluted EPS from Continuing Operations
|
|
|
|
March 31, 2015
|
|
|
|
|
|
|
|
|
|
Projected GAAP diluted EPS from continuing operations range
|
|
|
|
$
|
1.79
|
to
|
$
|
1.86
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments, net of taxes:
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
|
|
0.18
|
|
|
0.18
|
|
Other intangibles amortization
|
|
|
|
|
0.09
|
|
|
0.09
|
|
Internally developed software products amortization
|
|
|
|
|
0.23
|
|
|
0.23
|
|
Share-based compensation
|
|
|
|
|
0.14
|
|
|
0.14
|
|
Other (gains) expenses, net (1)
|
|
|
|
|
0.02
|
|
|
0.02
|
|
Total non-GAAP adjustment
|
|
|
|
$
|
0.66
|
|
$
|
0.66
|
|
|
|
|
|
|
|
|
|
Projected non-GAAP diluted EPS from continuing operations range
|
|
|
|
$
|
2.45
|
to
|
$
|
2.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ending
|
|
Projected Operating Margin
|
|
|
|
March 31, 2015
|
|
|
|
|
|
|
|
|
|
Projected GAAP operating margin
|
|
|
|
|
28
|
%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating adjustments:
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
|
|
3
|
%
|
|
|
Other intangibles amortization
|
|
|
|
|
1
|
%
|
|
|
Internally developed software products amortization
|
|
|
|
|
3
|
%
|
|
|
Share-based compensation
|
|
|
|
|
2
|
%
|
|
|
Other (gains) expenses, net (1)
|
|
|
|
|
0
|
%
|
|
|
Total non-GAAP operating adjustment
|
|
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
Projected non-GAAP operating margin
|
|
|
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Non-GAAP adjustment consists of charges relating to the FY2014 Board
approved re-balancing initiative (the Fiscal 2014 Plan).
|
|
|
|
|
|
Refer to the discussion of non-GAAP financial measures included in
the accompanying press release for additional information.
|
|
|
|
CONTACT:
CA, Inc.
Jennifer Hallahan, 212-415-6924
Public
Relations
jennifer.hallahan@ca.com
or
Jonathan Doros,
212-415-6870
Investor Relations
jonathan.doros@ca.com
Xtrackers California Mun... (NASDAQ:CA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Xtrackers California Mun... (NASDAQ:CA)
Historical Stock Chart
From Jul 2023 to Jul 2024