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Profits slip at CA Technologies

Islandia-based CA Technologies won its appeal against the

Islandia-based CA Technologies won its appeal against the Internal Revenue Service. (Credit: Kevin P. Coughlin, 2012)

Software maker CA Technologies said its third-quarter profits dipped five percent as revenue fell for its mainframe computer programs.

The company, which sells mainframe, storage and security software to large corporations, said revenue fell five percent to $1.2 billion in the three months ended Dec. 31, compared to the same period last year. Net income dropped to $251 million, or 55 cents per share.

Sales of mainframe software, the company’s largest unit, fell 9 percent, to $622 million. The drop stemmed largely from a $39 million single license payment the company received in the third quarter of 2012.

CA chief executive Michael Gregoire said he was encouraged that the company made some gains in the quarter but added that “we need to do more to accelerate innovation, gain market share and better differentiate our solutions in the marketplace.”

Gregoire took over as chief executive Jan. 7, replacing Bill McCracken, who had led the company since 2010. McCracken, who is retiring, will stay on in an advisory role for the remainder of the year.

Analysts had expected CA's sales to be $1.17 billion. The company's shares were up 16 cents in after-hours trading, to $24.71.

Based in Islandia, CA is Long Island's largest company by stock market value, at roughly $11.22 billion. It has about 1,525 employees on Long Island and close to 14,000 employees worldwide.

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