CA Technologies revenue slips; profit slumps 35 percent

CA Technologies, the Long-Island born software giant, said Wednesday its fiscal first-quarter revenue slipped as the company continued trying to build sales outside its traditional mainframe programs.

The company, which sells software to large corporations, said revenue dipped to $1.07 billion in the three months that ended in June, down 2 percent from the same period last year.

"We had an encouraging first quarter ... On balance, we are making progress and seeing signs of traction," CA chief executive Mike Gregoire said in a call with analysts.

CA's net income for the quarter dropped 35 percent, to $217 million, or 49 cents per share. A year earlier, a $122 million tax gain boosted the company's profits.

Revenue fell short of the expectations of analysts, who had predicted sales of $1.088 billion. CA released the results after Wall Street closed. Its stock was unchanged in after-hours trading, at $28.36.

Founded in 1976, CA became a behemoth by selling mainframe programs to airlines, banks and others. But many mainframes have been replaced by newer systems, and CA sales have dipped for nine consecutive quarters.

To reverse that trend, Gregoire said CA needs to focus on cloud-based software and other newer programs.

CA was based for 22 years in Islandia before moving its corporate office to Manhattan in May. It still employs roughly 1,400 people on Long Island.