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Acquisitions help CA net income jump 12%

CA Technologies logo

CA Technologies logo Credit: CA Technologies

Software maker CA Technologies, Long Island's largest public company by stock market value, Thursday reported a 12 percent jump in net income as it boosted sales by acquiring competitors and increasing its global customer base.

The company, which sells software to large corporations, said revenue climbed 5 percent, to $1.2 billion, for the first three months of 2012. Revenue for CA's largest division, programs for mainframe computers, was up 2 percent, to $629 million. Overall net income rose to $211 million.

The company has expanded in recent years by buying a string of smaller technology businesses. They include Interactive TKO Inc., a Texas company that CA bought in August for $317 million. The acquisitions helped fuel a 9 percent jump in revenue during the company's 2011 fiscal year, which ended March 31.

"We are getting good returns off the acquisitions," CA's chief executive Bill McCracken said during a call with investors Thursday.

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.

CA has expanded its customer base, in part, by pushing into markets in Asia and Latin America. During the fourth quarter of 2011, CA added 50 new customers to its cybersecurity division, including American Express and Shiny Card Korea. Other new customers include Toyota Financial Services and Fuji Xerox Taiwan.

The Islandia-based company was incorporated in 1974 and went public in 1981. The total value of CA's shares is about $12.8 billion. It derived 62 percent of its revenue from North America during 2011; 38 percent came from international sales.

CA has about 1,525 employees on Long Island and close to 14,000 employees worldwide, including in Silicon Valley, India and Korea. The company was named Computer Associates until 2006, when it changed its name in the wake of an accounting scandal. It led to a 12-year federal prison sentence for the company's former chief executive, Sanjay Kumar.


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