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:
July
23, 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.)
|
|
|
|
520 Madison Avenue New York, New York (Address
of principal executive offices)
|
|
10022 (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 July 23, 2014, CA, Inc. (the “Company”) issued a press release
announcing its financial results for the fiscal quarter ended June 30,
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 July 23, 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:
|
July 23, 2014
|
By:
|
/s/ C.H.R. DuPree
|
|
|
|
C.H.R. DuPree
|
|
|
|
Senior Vice President, General Counsel
|
|
|
|
(Acting) and Corporate Secretary
|
Exhibit Index
Exhibit No.
|
|
Description
|
99.1
|
|
Press release dated July 23, 2014 relating to CA, Inc.s financial
results.
|
Exhibit 99.1
CA
Technologies Reports First Quarter Fiscal Year 2015 Results
-
Results
in-line with expectations; demonstrated continued financial
discipline; showed strong performance in connection with renewals
-
Adjusted
to reflect arcserve as discontinued operation;
-
First Quarter Revenue of $1.069 Billion, Compared With $1.095
Billion Last Year
-
First Quarter GAAP EPS of $0.48, Compared With $0.72 Last Year
(prior year results positively impacted by $0.40 per share tax
benefit)
-
First Quarter Non-GAAP EPS of $0.65, Compared With $0.76 Last Year
(prior year results positively impacted by $0.14 per share tax
benefit)
-
First Quarter Cash Flow From Continuing Operations of $166 Million,
Compared With $3 Million Last Year (primarily due to lower tax
payments in current quarter)
NEW YORK--(BUSINESS WIRE)--July 23, 2014--CA Technologies (NASDAQ:CA)
today reported financial results for its first quarter fiscal 2015,
ended June 30, 2014.
Mike Gregoire, CA Technologies Chief Executive Officer, made the
following comments:
“CA’s results for the first quarter are in-line with our expectations,
reflecting continued financial discipline and a strong performance in
connection with renewals, which contributed to an uptick in Enterprise
Solutions new sales. In addition, the investment focus and new
capabilities we established last year allowed us to make important
strategic progress in the quarter. We launched a highly differentiated,
CA-built SaaS solution in the IT Service Management space with a
powerful user experience and one of the industry’s most attractive
time-to-value offerings. And, we announced the divestiture of the
arcserve business, further managing our portfolio and sharpening our
focus.
“As we look ahead to the balance of FY2015, we know that there is still
much work ahead of us to build CA for growth. We will continue to focus
on our strengths, invest in key growth areas and drive the level of
execution needed to advance our business strategy, serve our customers
and deliver long-term value for our shareholders.”
FINANCIAL OVERVIEW
Note: All financial results have been adjusted to reflect the
classification of the Company's arcserve data protection business as a
discontinued operation.
|
|
|
|
(dollars in millions, except share data)
|
|
|
First Quarter FY15 vs. FY14
|
|
FY15
|
|
FY14
|
|
% Change
|
|
% Change CC**
|
Revenue
|
|
$1,069
|
|
$1,095
|
|
(2)%
|
|
(3)%
|
GAAP Income from Continuing Operations
|
|
$212
|
|
$330
|
|
(36)%
|
|
(35)%
|
Non-GAAP Income from Continuing Operations*
|
|
$289
|
|
$345
|
|
(16)%
|
|
(17)%
|
GAAP Diluted EPS from Continuing Operations
|
|
$0.48
|
|
$0.72
|
|
(33)%
|
|
(34)%
|
Non-GAAP Diluted EPS from Continuing Operations*
|
|
$0.65
|
|
$0.76
|
|
(14)%
|
|
(15)%
|
Cash Flow from Continuing Operations
|
|
$166
|
|
$3
|
|
NM
|
|
NM
|
* 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
REVENUE AND BOOKINGS
|
|
|
|
(dollars in millions)
|
|
|
First Quarter FY15 vs. FY14
|
|
FY15
|
|
% of Total
|
|
FY14
|
|
% of Total
|
|
% Change
|
|
% Change CC**
|
North America Revenue
|
|
$682
|
|
64%
|
|
$701
|
|
64%
|
|
(3)%
|
|
(2)%
|
International Revenue
|
|
$387
|
|
36%
|
|
$394
|
|
36%
|
|
(2)%
|
|
(4)%
|
Total Revenue
|
|
$1,069
|
|
|
|
$1,095
|
|
|
|
(2)%
|
|
(3)%
|
|
|
|
North America Bookings
|
|
$459
|
|
63%
|
|
$410
|
|
52%
|
|
12%
|
|
11%
|
International Bookings
|
|
$265
|
|
37%
|
|
$386
|
|
48%
|
|
(31)%
|
|
(32)%
|
Total Bookings
|
|
$724
|
|
|
|
$796
|
|
|
|
(9)%
|
|
(10)%
|
|
|
|
Current Revenue Backlog
|
|
$3,402
|
|
|
|
$3,371
|
|
|
|
1%
|
|
(1)%
|
Total Revenue Backlog
|
|
$7,330
|
|
|
|
$7,295
|
|
|
|
0%
|
|
(1)%
|
**CC: Constant Currency
-
The decrease in revenue was primarily due to a decrease in
subscription and maintenance revenue and a decrease in professional
services revenue.
-
The decrease in bookings was primarily due to lower year-over-year
professional services bookings, due to a decrease in the size and
number of professional services engagements, including non-core
engagements with government customers that are not directly related to
our software product sales.
-
The Company executed a total of 8 license agreements with incremental
contract values in excess of $10 million each, for an aggregate
contract value of $330 million. During the first quarter of fiscal
2014, the Company executed a total of 9 license agreements with
incremental contract values in excess of $10 million each, for an
aggregate contract value of $323 million.
-
The weighted average duration of subscription and maintenance bookings
for the quarter was 3.60 years, compared with 3.10 years for the same
period in fiscal 2014, primarily attributable to a contract renewal
with a large financial services company.
EXPENSES AND MARGIN
|
|
|
|
(dollars in millions)
|
|
|
First Quarter FY15 vs. FY14
|
|
FY15
|
|
FY14
|
|
% Change
|
|
% Change CC**
|
GAAP
|
|
|
Operating Expenses Before Interest and Income Taxes
|
|
$756
|
|
$876
|
|
(14)%
|
|
(14)%
|
Operating Income Before Interest and Income Taxes
|
|
$313
|
|
$219
|
|
43%
|
|
44%
|
Operating Margin
|
|
29%
|
|
20%
|
|
|
|
|
Effective Tax Rate
|
|
29.1%
|
|
(58.7)%
|
|
|
|
|
|
|
|
|
Non-GAAP*
|
|
|
|
Operating Expenses Before Interest and Income Taxes
|
|
$642
|
|
$684
|
|
(6)%
|
|
(6)%
|
Operating Income Before Interest and Income Taxes
|
|
$427
|
|
$411
|
|
4%
|
|
3%
|
Operating Margin
|
|
40%
|
|
38%
|
|
|
|
|
Effective Tax Rate
|
|
30.0%
|
|
13.8%
|
|
|
|
|
*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 workforce 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 and non-GAAP EPS in the first quarter of fiscal 2015 were
negatively affected by $0.58 and $0.15, respectively, from an increase
in the Company's GAAP and non-GAAP effective tax rates. The Company
recognized a net discrete tax benefit of approximately $181 million in
the first quarter of fiscal 2014, primarily from the resolution of
uncertain tax positions relating to U.S. and non-U.S. jurisdictions.
-
GAAP operating expenses include approximately $9 million in costs
associated with the Fiscal 2014 Rebalancing Plan, compared with $117
million in the first quarter of fiscal 2014. This resulted in a
positive impact of $0.39 on GAAP EPS.
SELECTED HIGHLIGHTS FROM THE QUARTER
-
Customer traction for CA innovations continued in the quarter.
-
A large financial services company is incorporating the full suite
of CA virtualization and automation solutions to improve speed and
quality of application production.
-
Together with a partner, CA signed a multi-million dollar contract
with a large government entity to help improve the quality of a
high-profile, consumer-facing healthcare application.
-
Tata Sky – India’s leading direct broadcast television provider –
selected CA Application Performance Management, Nimsoft Monitoring
and Workload Automation.
-
Dillard’s – a US-based department store chain – chose CA as the
company-wide API solution.
-
CA launched Cloud Service Management, a CA-built solution that
redefines SaaS in the segment by delivering rapid time to value and a
differentiated user-experience.
-
Further strengthened the leadership team: named Amit Chatterjee EVP,
Enterprise Solutions and Technology Group.
SEGMENT INFORMATION
|
|
|
|
(dollars in millions)
|
|
|
First Quarter FY15 vs. FY14
|
|
Revenue
|
|
% Change
|
|
% Change CC**
|
|
Operating Margin
|
|
FY15
|
|
FY14
|
|
|
|
FY15
|
|
FY14
|
Mainframe Solutions
|
|
$614
|
|
$619
|
|
(1)%
|
|
(1)%
|
|
62%
|
|
61%
|
Enterprise Solutions
|
|
$368
|
|
$378
|
|
(3)%
|
|
(3)%
|
|
12%
|
|
7%
|
Services
|
|
$87
|
|
$98
|
|
(11)%
|
|
(11)%
|
|
6%
|
|
8%
|
**CC: Constant Currency
-
The increase in Mainframe Solutions and Enterprise Solutions operating
margin in the first quarter of fiscal 2015 was primarily a result of
timing of selling and marketing expenses and a reduction in personnel
costs.
-
The decrease in Enterprise Solutions revenue for the first quarter of
fiscal 2015 was primarily due to a decrease in new product sales in
the prior fiscal year.
-
The decline in Services revenue was primarily due to a decrease in the
size and number of professional services engagements including
non-core engagements with government customers that are not directly
related to our software product sales.
CASH FLOW FROM OPERATIONS
-
Cash flow from operations in the first quarter of fiscal 2015 was $166
million, compared with $3 million in the prior year. The increase was
primarily due to a decrease in income tax payments.
CAPITAL STRUCTURE
-
Cash, cash equivalents and investments at June 30, 2014 were $3.255
billion.
-
With $1.769 billion in total debt outstanding and $140 million in
notional pooling, the Company’s net cash, cash equivalents and
investments position was $1.346 billion.
-
In the first quarter of fiscal 2015, the Company repurchased 1.7
million shares of common stock for $50 million.
-
The Company is currently authorized to purchase $950 million of its
common stock under its current stock repurchase program.
-
The Company distributed $111 million in dividends to shareholders.
-
The Company’s outstanding share count at June 30, 2014 was 440 million.
OUTLOOK FOR FISCAL YEAR 2015
The Company reaffirmed the following outlook, which represents
"forward-looking statements" (as defined below). It takes into account
the effect of the definitive agreement to divest CA arcserve data
protection business announced on July 7, 2014.
The Company expects the following:
-
Total revenue to decrease in a range of minus 2 percent to minus 1
percent in constant currency. At June 30, 2014 exchange rates, this
translates to reported revenue of $4.34 billion to $4.40 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 June 30, 2014 exchange rates, this translates to reported
GAAP diluted earnings per share of $1.77 to $1.84.
-
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 June 30, 2014 exchange rates, this translates to
reported non-GAAP diluted earnings per share of $2.42 to $2.49.
-
Cash flow from continuing operations to increase in a range of 5
percent to 12 percent in constant currency. At June 30, 2014 exchange
rates, this translates to reported cash flow from continuing
operations of $1.04 billion to $1.11 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 approximately 30 percent, which
results in a negative impact to GAAP and non-GAAP diluted earnings per
share from continuing operations of approximately $0.43 and $0.59,
respectively.
The Company anticipates approximately 436 million shares outstanding at
fiscal 2015 year-end and weighted average diluted shares outstanding of
approximately 441 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
conference call and webcast that the Company will host at 5:00 p.m. ET
today to discuss its unaudited first quarter 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: share-based compensation expense; non-cash
amortization of purchased software and other intangible assets; charges
relating to rebalancing initiatives that are large enough to require
approval from the Company's Board of Directors, fiscal 2007
restructuring costs 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 began expensing costs for internally
developed software where development efforts commenced in the first
quarter of fiscal 2014. 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 also adds back capitalized internal software
costs and excludes amortization of internally developed software costs
previously capitalized from these non-GAAP metrics. 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 and March 31,
2012, 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
|
|
|
|
|
|
|
June 30,
|
|
Revenue:
|
|
|
|
|
2014
|
|
|
2013
|
|
Subscription and maintenance
|
|
|
|
|
$
|
909
|
|
|
$
|
922
|
|
|
Professional services
|
|
|
|
|
|
87
|
|
|
|
98
|
|
|
Software fees and other
|
|
|
|
|
|
73
|
|
|
|
75
|
|
|
Total revenue
|
|
|
|
|
$
|
1,069
|
|
|
$
|
1,095
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Costs of licensing and maintenance
|
|
|
|
|
$
|
72
|
|
|
$
|
68
|
|
|
Cost of professional services
|
|
|
|
|
|
81
|
|
|
|
88
|
|
|
Amortization of capitalized software costs
|
|
|
|
|
|
67
|
|
|
|
66
|
|
|
Selling and marketing
|
|
|
|
|
|
246
|
|
|
|
269
|
|
|
General and administrative
|
|
|
|
|
|
92
|
|
|
|
91
|
|
|
Product development and enhancements
|
|
|
|
|
|
150
|
|
|
|
132
|
|
|
Depreciation and amortization of other intangible assets
|
|
|
|
|
|
34
|
|
|
|
36
|
|
|
Other expenses, net (1)
|
|
|
|
|
|
14
|
|
|
|
126
|
|
|
Total expenses before interest and income taxes
|
|
|
|
|
$
|
756
|
|
|
$
|
876
|
|
|
Income from continuing operations before interest and income taxes
|
|
|
|
|
$
|
313
|
|
|
$
|
219
|
|
|
Interest expense, net
|
|
|
|
|
|
14
|
|
|
|
11
|
|
|
Income from continuing operations before income taxes
|
|
|
|
|
$
|
299
|
|
|
$
|
208
|
|
|
Income tax expense (benefit)
|
|
|
|
|
|
87
|
|
|
|
(122
|
)
|
|
Income from continuing operations
|
|
|
|
|
$
|
212
|
|
|
$
|
330
|
|
|
Income from discontinued operations, net of income taxes
|
|
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
Net income
|
|
|
|
|
$
|
217
|
|
|
$
|
335
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per common share:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
|
$
|
0.48
|
|
|
$
|
0.72
|
|
|
Income from discontinued operations
|
|
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Net income
|
|
|
|
|
$
|
0.49
|
|
|
$
|
0.73
|
|
|
Basic weighted average shares used in computation
|
|
|
|
|
|
440
|
|
|
|
450
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per common share:
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
|
|
$
|
0.48
|
|
|
$
|
0.72
|
|
|
Income from discontinued operations
|
|
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
Net income
|
|
|
|
|
$
|
0.49
|
|
|
$
|
0.73
|
|
|
Diluted weighted average shares used in computation
|
|
|
|
|
|
441
|
|
|
|
451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Other expenses, net includes approximately $9 million and $117
million of charges relating to the FY2014 Board approved rebalancing
initiative (the Fiscal 2014 Plan), for the three month periods
ending June 30, 2014 and June 30, 2013, respectively.
|
|
|
|
|
|
Prior year results have been adjusted to reflect the discontinued
operations associated with the sale of CA ERwin Data Modeling and CA
arcserve data protection businesses.
|
|
|
|
|
Table 2
|
CA Technologies
|
Condensed Consolidated Balance Sheets
|
(in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
March 31,
|
|
|
|
|
|
|
2014
|
|
|
2014
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
3,255
|
|
|
|
$
|
3,252
|
|
|
Trade accounts receivable, net
|
|
|
|
|
|
553
|
|
|
|
|
800
|
|
|
Deferred income taxes
|
|
|
|
|
|
336
|
|
|
|
|
315
|
|
|
Other current assets
|
|
|
|
|
|
154
|
|
|
|
|
192
|
|
|
Total current assets
|
|
|
|
|
$
|
4,298
|
|
|
|
$
|
4,559
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
|
|
$
|
291
|
|
|
|
$
|
295
|
|
|
Goodwill
|
|
|
|
|
|
5,922
|
|
|
|
|
5,922
|
|
|
Capitalized software and other intangible assets, net
|
|
|
|
|
|
978
|
|
|
|
|
1,063
|
|
|
Deferred income taxes
|
|
|
|
|
|
58
|
|
|
|
|
59
|
|
|
Other noncurrent assets, net
|
|
|
|
|
|
119
|
|
|
|
|
118
|
|
|
Total assets
|
|
|
|
|
$
|
11,666
|
|
|
|
$
|
12,016
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
|
|
|
$
|
515
|
|
|
|
$
|
514
|
|
|
Deferred revenue (billed or collected)
|
|
|
|
|
|
2,205
|
|
|
|
|
2,419
|
|
|
Deferred income taxes
|
|
|
|
|
|
7
|
|
|
|
|
9
|
|
|
Other current liabilities
|
|
|
|
|
|
835
|
|
|
|
|
980
|
|
|
Total current liabilities
|
|
|
|
|
$
|
3,562
|
|
|
|
$
|
3,922
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of current portion
|
|
|
|
|
$
|
1,254
|
|
|
|
$
|
1,252
|
|
|
Deferred income taxes
|
|
|
|
|
|
67
|
|
|
|
|
67
|
|
|
Deferred revenue (billed or collected)
|
|
|
|
|
|
805
|
|
|
|
|
872
|
|
|
Other noncurrent liabilities
|
|
|
|
|
|
310
|
|
|
|
|
333
|
|
|
Total liabilities
|
|
|
|
|
$
|
5,998
|
|
|
|
$
|
6,446
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
|
$
|
59
|
|
|
|
$
|
59
|
|
|
Additional paid-in capital
|
|
|
|
|
|
3,566
|
|
|
|
|
3,610
|
|
|
Retained earnings
|
|
|
|
|
|
5,924
|
|
|
|
|
5,818
|
|
|
Accumulated other comprehensive loss
|
|
|
|
|
|
(161
|
)
|
|
|
|
(171
|
)
|
|
Treasury stock
|
|
|
|
|
|
(3,720
|
)
|
|
|
|
(3,746
|
)
|
|
Total stockholders’ equity
|
|
|
|
|
$
|
5,668
|
|
|
|
$
|
5,570
|
|
|
Total liabilities and stockholders’ equity
|
|
|
|
|
$
|
11,666
|
|
|
|
$
|
12,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 3
|
CA Technologies
|
Condensed Consolidated Statements of Cash Flows
|
(unaudited)
|
(in millions)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
Operating activities from continuing operations:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
217
|
|
|
|
$
|
335
|
|
|
Income from discontinued operations
|
|
|
|
|
(5
|
)
|
|
|
|
(5
|
)
|
|
Income from continuing operations
|
|
|
|
$
|
212
|
|
|
|
$
|
330
|
|
|
Adjustments to reconcile income from continuing operations to net
cash provided
|
|
|
|
|
by operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
101
|
|
|
|
|
102
|
|
|
Deferred income taxes
|
|
|
|
|
(20
|
)
|
|
|
|
(48
|
)
|
|
Provision for bad debts
|
|
|
|
|
(1
|
)
|
|
|
|
2
|
|
|
Share-based compensation expense
|
|
|
|
|
20
|
|
|
|
|
20
|
|
|
Asset impairments and other non-cash items
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
Foreign currency transaction gains
|
|
|
|
|
-
|
|
|
|
|
(1
|
)
|
|
Changes in other operating assets and liabilities, net of effect of
acquisitions:
|
|
|
|
|
Decrease in trade accounts receivable
|
|
|
|
|
251
|
|
|
|
|
316
|
|
|
Decrease in deferred revenue
|
|
|
|
|
(285
|
)
|
|
|
|
(317
|
)
|
|
Increase (decrease) in taxes payable, net
|
|
|
|
|
17
|
|
|
|
|
(338
|
)
|
|
(Decrease) increase in accounts payable, accrued expenses and other
|
|
|
|
|
(30
|
)
|
|
|
|
8
|
|
|
Decrease in accrued salaries, wages and commissions
|
|
|
|
|
(97
|
)
|
|
|
|
(38
|
)
|
|
Changes in other operating assets and liabilities
|
|
|
|
|
(3
|
)
|
|
|
|
(35
|
)
|
|
Net cash provided by operating activities - continuing operations
|
|
|
|
$
|
166
|
|
|
|
$
|
3
|
|
|
Investing activities from continuing operations:
|
|
|
|
|
|
|
|
|
Acquisitions of businesses, net of cash acquired, and purchased
software
|
|
|
|
$
|
(11
|
)
|
|
|
$
|
(122
|
)
|
|
Purchases of property and equipment
|
|
|
|
|
(21
|
)
|
|
|
|
(13
|
)
|
|
Capitalized software development costs
|
|
|
|
|
-
|
|
|
|
|
(25
|
)
|
|
Maturities of short-term investments
|
|
|
|
|
-
|
|
|
|
|
184
|
|
|
Net cash (used in) provided by investing activities -
continuing operations
|
|
|
|
$
|
(32
|
)
|
|
|
$
|
24
|
|
|
Financing activities from continuing operations:
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
|
|
$
|
(111
|
)
|
|
|
$
|
(114
|
)
|
|
Purchases of common stock
|
|
|
|
|
(50
|
)
|
|
|
|
(49
|
)
|
|
Notional pooling borrowings, net
|
|
|
|
|
11
|
|
|
|
|
2
|
|
|
Debt repayments
|
|
|
|
|
(2
|
)
|
|
|
|
(4
|
)
|
|
Debt issuance costs
|
|
|
|
|
-
|
|
|
|
|
(1
|
)
|
|
Exercise of common stock options and other
|
|
|
|
|
12
|
|
|
|
|
28
|
|
|
Net cash used in financing activities - continuing operations
|
|
|
|
$
|
(140
|
)
|
|
|
$
|
(138
|
)
|
|
Net change in cash and cash equivalents before effect of
exchange rate changes on
cash - continuing operations
|
|
|
|
$
|
(6
|
)
|
|
|
$
|
(111
|
)
|
|
Effect of exchange rate changes on cash
|
|
|
|
$
|
1
|
|
|
|
$
|
(29
|
)
|
|
Cash provided by operating activities - discontinued operations
|
|
|
|
$
|
8
|
|
|
|
$
|
8
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
$
|
3
|
|
|
|
$
|
(132
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
$
|
3,252
|
|
|
|
$
|
2,593
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
3,255
|
|
|
|
$
|
2,461
|
|
|
|
|
|
|
|
|
|
|
Prior year results have been adjusted to reflect the discontinued
operations associated with the sale of CA ERwin Data Modeling and CA
arcserve data protection businesses.
|
|
|
Table 4
|
CA Technologies
|
Operating Segments
|
(unaudited)
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2014
|
|
|
|
|
|
Mainframe Solutions (1)
|
|
Enterprise Solutions (1)
|
|
Services (1)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (2)
|
|
|
|
$
|
614
|
|
|
$
|
368
|
|
|
$
|
87
|
|
|
$
|
1,069
|
|
|
Expenses (3)
|
|
|
|
|
235
|
|
|
|
325
|
|
|
|
82
|
|
|
|
642
|
|
|
Segment profit
|
|
|
|
$
|
379
|
|
|
$
|
43
|
|
|
$
|
5
|
|
|
$
|
427
|
|
|
Segment operating margin
|
|
|
|
|
62
|
%
|
|
|
12
|
%
|
|
|
6
|
%
|
|
|
40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
|
|
|
|
|
|
|
|
|
$
|
427
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
|
|
|
|
|
|
|
|
28
|
|
|
Other intangibles amortization
|
|
|
|
|
|
|
|
|
|
|
15
|
|
|
Software development costs capitalized
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
Internally developed software products amortization
|
|
|
|
|
|
|
|
|
|
39
|
|
|
Share-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
20
|
|
|
Other expenses, net (4)
|
|
|
|
|
|
|
|
|
|
|
12
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
14
|
|
|
Income from continuing operations before income taxes
|
|
|
|
|
|
|
|
|
$
|
299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2013
|
|
|
|
|
|
Mainframe Solutions (1)
|
|
Enterprise Solutions (1)
|
|
Services (1)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (2)
|
|
|
|
$
|
619
|
|
|
$
|
378
|
|
|
$
|
98
|
|
|
$
|
1,095
|
|
|
Expenses (3)
|
|
|
|
|
243
|
|
|
|
351
|
|
|
|
90
|
|
|
|
684
|
|
|
Segment profit
|
|
|
|
$
|
376
|
|
|
$
|
27
|
|
|
$
|
8
|
|
|
$
|
411
|
|
|
Segment operating margin
|
|
|
|
|
61
|
%
|
|
|
7
|
%
|
|
|
8
|
%
|
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
|
|
|
|
|
|
|
|
|
$
|
411
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
|
|
|
|
|
|
|
|
28
|
|
|
Other intangibles amortization
|
|
|
|
|
|
|
|
|
|
|
14
|
|
|
Software development costs capitalized
|
|
|
|
|
|
|
|
|
|
|
(23
|
)
|
|
Internally developed software products amortization
|
|
|
|
|
|
|
|
|
|
38
|
|
|
Share-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
20
|
|
|
Other expenses, net (4)
|
|
|
|
|
|
|
|
|
|
|
115
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
|
|
11
|
|
|
Income from continuing operations before income taxes
|
|
|
|
|
|
|
|
|
$
|
208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 expenses, net includes charges relating to the FY2014 Board
approved rebalancing initiative (the Fiscal 2014 Plan), certain
foreign exchange derivative hedging gains and losses, and other
miscellaneous costs.
|
|
|
|
|
|
Prior year results have been adjusted to reflect the discontinued
operations associated with the sale of CA ERwin Data Modeling and CA
arcserve data protection businesses.
|
|
|
|
|
Table 5
|
CA Technologies
|
Constant Currency Summary
|
(unaudited)
|
(dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
% Increase
(Decrease)
in $ US
|
|
|
% Increase (Decrease) in Constant Currency (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
|
|
|
$
|
724
|
|
|
$
|
796
|
|
|
(9
|
)%
|
|
|
(10
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
$
|
682
|
|
|
$
|
701
|
|
|
(3
|
)%
|
|
|
(2
|
)%
|
|
International
|
|
|
|
|
387
|
|
|
|
394
|
|
|
(2
|
)%
|
|
|
(4
|
)%
|
|
Total revenue
|
|
|
|
$
|
1,069
|
|
|
$
|
1,095
|
|
|
(2
|
)%
|
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and maintenance
|
|
|
|
$
|
909
|
|
|
$
|
922
|
|
|
(1
|
)%
|
|
|
(2
|
)%
|
|
Professional services
|
|
|
|
|
87
|
|
|
|
98
|
|
|
(11
|
)%
|
|
|
(11
|
)%
|
|
Software fees and other
|
|
|
|
|
73
|
|
|
|
75
|
|
|
(3
|
)%
|
|
|
(3
|
)%
|
|
Total revenue
|
|
|
|
$
|
1,069
|
|
|
$
|
1,095
|
|
|
(2
|
)%
|
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainframe solutions
|
|
|
|
$
|
614
|
|
|
$
|
619
|
|
|
(1
|
)%
|
|
|
(1
|
)%
|
|
Enterprise solutions
|
|
|
|
|
368
|
|
|
|
378
|
|
|
(3
|
)%
|
|
|
(3
|
)%
|
|
Services
|
|
|
|
|
87
|
|
|
|
98
|
|
|
(11
|
)%
|
|
|
(11
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses before interest and income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP (2)
|
|
|
|
$
|
642
|
|
|
$
|
684
|
|
|
(6
|
)%
|
|
|
(6
|
)%
|
|
Total GAAP
|
|
|
|
|
756
|
|
|
|
876
|
|
|
(14
|
)%
|
|
|
(14
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2014, 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.
|
|
|
|
|
|
|
|
|
Prior year results have been adjusted to reflect the discontinued
operations associated with the sale of CA ERwin Data Modeling and CA
arcserve data protection businesses.
|
|
|
|
|
|
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
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
GAAP net income
|
|
|
|
|
$
|
217
|
|
|
$
|
335
|
|
|
GAAP income from discontinued operations, net of income taxes
|
|
|
|
|
|
(5
|
)
|
|
|
(5
|
)
|
|
GAAP income from continuing operations
|
|
|
|
|
$
|
212
|
|
|
$
|
330
|
|
|
GAAP income tax expense (benefit)
|
|
|
|
|
|
87
|
|
|
|
(122
|
)
|
|
Interest expense, net
|
|
|
|
|
|
14
|
|
|
|
11
|
|
|
GAAP income from continuing operations before interest and income
taxes
|
|
|
|
|
$
|
313
|
|
|
$
|
219
|
|
|
GAAP operating margin (% of revenue) (1)
|
|
|
|
|
|
29
|
%
|
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments to expenses:
|
|
|
|
|
|
|
|
|
Costs of licensing and maintenance (2)
|
|
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
Cost of professional services (2)
|
|
|
|
|
|
1
|
|
|
|
1
|
|
|
Amortization of capitalized software costs (3)
|
|
|
|
|
|
67
|
|
|
|
66
|
|
|
Selling and marketing (2)
|
|
|
|
|
|
7
|
|
|
|
7
|
|
|
General and administrative (2)
|
|
|
|
|
|
6
|
|
|
|
6
|
|
|
Product development and enhancements (4)
|
|
|
|
|
|
5
|
|
|
|
(18
|
)
|
|
Depreciation and amortization of other intangible assets (5)
|
|
|
|
|
|
15
|
|
|
|
14
|
|
|
Other expenses, net (6)
|
|
|
|
|
|
12
|
|
|
|
115
|
|
|
Total Non-GAAP adjustment to operating expenses
|
|
|
|
|
$
|
114
|
|
|
$
|
192
|
|
|
Non-GAAP income from continuing operations before interest and
income taxes
|
|
|
|
|
$
|
427
|
|
|
$
|
411
|
|
|
Non-GAAP operating margin (% of revenue) (7)
|
|
|
|
|
|
40
|
%
|
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
|
|
14
|
|
|
|
11
|
|
|
GAAP income tax expense (benefit)
|
|
|
|
|
|
87
|
|
|
|
(122
|
)
|
|
Non-GAAP adjustment to income tax expense (benefit) (8)
|
|
|
|
|
|
37
|
|
|
|
177
|
|
|
Non-GAAP income tax expense
|
|
|
|
|
$
|
124
|
|
|
$
|
55
|
|
|
Non-GAAP income from continuing operations
|
|
|
|
|
$
|
289
|
|
|
$
|
345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
Non-GAAP adjustment consists of $28 million and $28 million of
purchased software amortization and $39 million and $38 million of
internally developed software products amortization for the three
month periods ending June 30, 2014 and 2013, respectively.
|
|
|
|
(4)
|
|
Non-GAAP adjustment consists of $5 million of share-based
compensation for the three month period ending June 30, 2014.
Non-GAAP adjustment consists of $5 million of share-based
compensation and ($23) million of software development costs
capitalized for the three month period ending June 30, 2013.
|
|
|
|
(5)
|
|
Non-GAAP adjustment consists of other intangibles amortization.
|
|
|
|
(6)
|
|
Non-GAAP adjustment consists of charges relating to the FY2014 Board
approved rebalancing 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 CA ERwin Data Modeling and CA
arcserve data protection businesses.
|
|
|
|
|
|
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
|
|
|
|
|
|
|
June 30,
|
|
Operating Expenses
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Total expenses before interest and income taxes
|
|
|
|
|
$
|
756
|
|
|
$
|
876
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating adjustments:
|
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
|
|
|
28
|
|
|
|
28
|
|
|
Other intangibles amortization
|
|
|
|
|
|
15
|
|
|
|
14
|
|
|
Software development costs capitalized
|
|
|
|
|
|
-
|
|
|
|
(23
|
)
|
|
Internally developed software products amortization
|
|
|
|
|
|
39
|
|
|
|
38
|
|
|
Share-based compensation
|
|
|
|
|
|
20
|
|
|
|
20
|
|
|
Other expenses, net (1)
|
|
|
|
|
|
12
|
|
|
|
115
|
|
|
Total non-GAAP operating adjustment
|
|
|
|
|
$
|
114
|
|
|
$
|
192
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP operating expenses
|
|
|
|
|
$
|
642
|
|
|
$
|
684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
June 30,
|
|
Diluted EPS from Continuing Operations
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted EPS from continuing operations
|
|
|
|
|
$
|
0.48
|
|
|
$
|
0.72
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments, net of taxes:
|
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
|
|
|
0.04
|
|
|
|
0.10
|
|
|
Other intangibles amortization
|
|
|
|
|
|
0.03
|
|
|
|
0.05
|
|
|
Software development costs capitalized
|
|
|
|
|
|
-
|
|
|
|
(0.08
|
)
|
|
Internally developed software products amortization
|
|
|
|
|
|
0.06
|
|
|
|
0.13
|
|
|
Share-based compensation
|
|
|
|
|
|
0.03
|
|
|
|
0.07
|
|
|
Other expenses, net (1)
|
|
|
|
|
|
0.02
|
|
|
|
0.40
|
|
|
Non-GAAP effective tax rate adjustments (2)
|
|
|
|
|
|
(0.01
|
)
|
|
|
(0.63
|
)
|
|
Total non-GAAP adjustment
|
|
|
|
|
$
|
0.17
|
|
|
$
|
0.04
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted EPS from continuing operations
|
|
|
|
|
$
|
0.65
|
|
|
$
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Non-GAAP adjustment consists of charges relating to the FY2014 Board
approved rebalancing 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.
|
|
|
|
(2)
|
|
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 CA ERwin Data Modeling and CA
arcserve data protection businesses.
|
|
|
|
|
|
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
|
|
|
|
|
|
|
June 30, 2014
|
|
|
|
|
|
|
GAAP
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before interest and income taxes (1)
|
|
|
|
|
$
|
313
|
|
|
|
$
|
427
|
|
|
Interest expense, net
|
|
|
|
|
|
14
|
|
|
|
|
14
|
|
|
Income from continuing operations before income taxes
|
|
|
|
|
$
|
299
|
|
|
|
$
|
413
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate
|
|
|
|
|
|
35
|
%
|
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Tax at statutory rate
|
|
|
|
|
$
|
105
|
|
|
|
$
|
145
|
|
|
Adjustments for discrete and permanent items (2)
|
|
|
|
|
|
(18
|
)
|
|
|
|
(21
|
)
|
|
Total tax expense
|
|
|
|
|
$
|
87
|
|
|
|
$
|
124
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (3)
|
|
|
|
|
|
29.1
|
%
|
|
|
|
30.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
June 30, 2013
|
|
|
|
|
|
|
GAAP
|
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before interest and income taxes (1)
|
|
|
|
|
$
|
219
|
|
|
|
$
|
411
|
|
|
Interest expense, net
|
|
|
|
|
|
11
|
|
|
|
|
11
|
|
|
Income from continuing operations before income taxes
|
|
|
|
|
$
|
208
|
|
|
|
$
|
400
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate
|
|
|
|
|
|
35
|
%
|
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Tax at statutory rate
|
|
|
|
|
$
|
73
|
|
|
|
$
|
140
|
|
|
Adjustments for discrete and permanent items (2)
|
|
|
|
|
|
(195
|
)
|
|
|
|
(85
|
)
|
|
Total tax (benefit) expense
|
|
|
|
|
$
|
(122
|
)
|
|
|
$
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (3)
|
|
|
|
|
|
(58.7
|
)%
|
|
|
|
13.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 CA ERwin Data Modeling and CA
arcserve data protection businesses.
|
|
|
|
|
|
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
|
|
|
|
|
$
|
1.77
|
|
to
|
|
$
|
1.84
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
0.22
|
|
|
|
|
0.22
|
|
Share-based compensation
|
|
|
|
|
|
0.14
|
|
|
|
|
0.14
|
|
Other expenses, net (1)
|
|
|
|
|
|
0.02
|
|
|
|
|
0.02
|
|
Total non-GAAP adjustment
|
|
|
|
|
$
|
0.65
|
|
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected non-GAAP diluted EPS from continuing operations range
|
|
|
|
|
$
|
2.42
|
|
to
|
|
$
|
2.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 rebalancing 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 Technologies
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