Software maker CA Inc., Long Island's largest public company by stock market value, said Thursday that it had a slow start to its fiscal year as sales slipped and subscription renewals sagged.
The company, which sells mainframe and storage software to large corporations, said revenue fell 2 percent, to $1.15 billion during April, May and June. The number of renewals for software subscriptions greater than $10 million fell to four from eight, representing a roughly $200-million drop in large contracts.
"It is important for us to get a strong start, and we didn't," CA's chief executive Bill McCracken said during a call with investors.
Nonetheless, the company still reported $240 million in profit for the first quarter of its fiscal year, down less than 1 percent from last year. That is in part because the company reduced expenses. Plus, CA earned $35 million by selling intellectual property assets to another technology company.
CA had expected fewer customers to re-up their software subscriptions this quarter, McCracken told investors. But the company also struggled to sell new products to customers outside of those renewals, he said.
CA's sales in North America were up 1 percent, to $726 million. But that increase was overshadowed by a 6 percent drop, to $419 million, in revenue in Asia, Europe and elsewhere.
The company released the earnings after the stock market closed. Its stock fell 17 cents, to $26.14 a share, in after-hours trading.
Aside from mainframe software, CA's products include programs for cybersecurity and cloud computing, which allows massive amounts of data to be stored remotely and accessed over the Internet.
The Islandia-based company was incorporated in 1974 and went public in 1981. The total value of CA's shares is about $12.3 billion. It has about 1,525 employees on Long Island and close to 14,000 employees worldwide.