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CA Technologies sales dip on declining demand

A look at CA Technologies in Islandia.

A look at CA Technologies in Islandia. Credit: Kevin P. Coughlin

CA Technologies, the Long Island-born software giant, said Wednesday its fiscal second-quarter sales dipped as demand for the company's mainframe programs continues to decline.

The company, which sells software to large corporations, said revenue dipped to $1.08 billion in the three months that ended in September, down 2 percent from the same period last year. Mainframe sales fell 2 percent, to $610 million.

CA, founded in 1976, became one of the region's largest software makers by selling mainframe programs to credit card companies, banks and other large enterprises.

As those sales have waned, the company has tried to focus on cloud-based software and other newer programs. Second-quarter sales for that unit also fell 2 percent to $378 million.

Nonetheless, CA chief executive Mike Gregoire said the company was making progress.

"While we still have a lot of work ahead . . . I believe we are clearly gaining traction," Gregoire said in a call with analysts.

Despite the drop in sales, CA's net income for the quarter increased 7 percent, to $256 million, or 58 cents per share, thanks in part to lower income taxes.

The company released the results after the close of regular trading on Wall Street. CA stock fell 1.31 percent, to $27.05, in after-hours trading.

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.

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