CA Technologies posts lower net income, higher revenue
CA Technologies reported revenue of $1.03 billion, a 2 percent increase over the previous year's results. May 10, 2012. Credit: Kevin P. Coughlin
Shares of CA Technologies declined 4.4 percent to close at $32.63 Thursday after the software maker posted slightly higher revenue for the second quarter, but lower net income.
After the market close Wednesday, the Manhattan company with more than 1,000 employees in Islandia reported revenue of $1.03 billion, a 2 percent increase over the previous year’s results.
Net income fell 13 percent to $184 million, while diluted earnings per share declined 12 percent to 44 cents.
“Our products continue to earn positive recognition from third-party industry analysts, and I believe we are well positioned in important markets,” CA Technologies Mike Gregoire said in a statement. “At the same time, there are areas of our business where we still need to improve.”
The company said that revenue rose in part due to an increase in software fees. Operating expenses increased primarily because of expenses related to two acquisitions.
The company issued fiscal year guidance calling for an increase of about 5 percent in revenue and a decrease of 8 percent to 5 percent in diluted earnings per share.
Shares of CA have risen 4.4 percent in the past 12 months, according to Bloomberg News.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
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