News

CA Profit Falls 64 Percent

CA Inc.'s fiscal first-quarter profit fell 64 percent on increased expenses, and the business software maker said it will trim its work force by about 10 percent, or 1,700 positions.

The Islandia-based company, formerly known as Computer Associates, said Monday it expects charges of about $200 million for the restructuring that also includes facilities consolidations and other cost-saving measures.

"We are not satisfied with our cost structure and we are implementing an expense reduction plan to improve the company's efficiency and competitive position," said John Swainson, CA's chief executive. For the quarter ended June 30, CA's earnings dropped to $35 million, or 6 cents per share, from $97 million, or 16 cents per share during the same period last year.

Results included adjustments for restructuring and amortization. Excluding these items, profit totaled $104 million, or 17 cents per share.

Analysts polled by Thomson Financial forecast a profit of 13 cents per share.

Revenue grew 3 percent to $956 million from $927 million during the year-ago quarter, beating analysts' expectations for revenue of $932.8 million.

The company posted a 9 percent increase in expenses from higher personnel costs resulting from recent acquisitions, among other factors.

CA said its June 29 guidance for adjusted earnings of 83 cents per share on revenue of $3.9 billion for fiscal 2007 has not been adjusted to reflect the stock repurchase plan or related financing activities.

Analysts currently are predicting earnings of 82 cents per share on $3.9 billion in revenue for the year.

Featured

  • Microsoft Appoints Althoff as New CEO for Commercial Business

    Microsoft CEO and chairman Satya Nadella on Wednesday announced the promotion of Judson Althoff to CEO of the company's commercial business, presenting the move as a response to the dramatic industrywide shifts caused by AI.

  • Broadcom Revamps VMware Partner Program Again

    Broadcom recently announced a significant update regarding its VMware Cloud Service Provider (VCSP) program, coinciding with the release of VMware Cloud Foundation (VCF) 9.0, a key component in Broadcom’s private cloud strategy.

  • Closeup of the new Copilot keyboard key

    Microsoft Updates Copilot To Add Context-Sensitive Agents to Teams, SharePoint

    Microsoft has rolled out a new public preview for collaborative "always on" agents in Microsoft 365 Copilot, bringing enhanced, context-aware tools into Teams channels, meetings, SharePoint sites, Planner workstreams and Viva Engage communities.

  • Windows 365 Cloud Apps Now Available for Public Preview

    Microsoft announced this week that Windows 365 Cloud Apps are now available for public preview. This aims to allow IT administrators to stream individual Windows applications from the cloud, removing the need to assign Cloud PCs to every user.