) reported fourth-quarter 2013 adjusted earnings per share
("EPS") of 65 cents, ahead of the Zacks Consensus Estimate of 53
Total revenue in the reported quarter was $1.15 billion, down
3.4% from $1.19 billion in the year-ago quarter. When adjusted
for currency, revenues declined 2.0% year over year. This was due
to a decline in Mainframe Solutions and the Enterprise solutions
Mainframe Solutions generated revenues of $620.0 million, down
1.4% year over year. Enterprise Solutions' revenues were $432.0
million, down 7.3% year over year. Services' revenues were down
6.5% year over year to $99.0 million.
The company witnessed total bookings of $1.46 billion, down 5.0%
on a reported basis. North America bookings were $986.0 million,
up 10.0% on a reported basis. The company won a large government
contract, which constituted a major part of this booking.
International Bookings were $477.0 million, down 26.0% from
the year-ago quarter.
The company renewed 27 license agreements during fiscal 2013,
with contract value in excess of $10.0 million each.
GAAP income from continuing operations before interest and
income taxes was $274.0 million, down 8.9% from $301.0 million
reported in the year-ago quarter. Therefore, the operating margin
for the quarter was 24.0% down from 25.0% reported in the
On a GAAP basis, net income was $242.0 million or 53 cents per
share versus $211.0 million 45 cents per share in the year-ago
quarter. Excluding special items, such as software amortization,
intangible amortization, restructuring and other and hedging
gains/losses, but including stock-based compensation expenses,
non-GAAP net income in the fourth quarter stood at 65 cents per
share versus 52 cents in the prior-year quarter.
Balance Sheet, Cash Flow & Share
CA generated cash flow from continuing operations of $570
million, up 0.7% from $566.0 million on a reported basis. Cash,
cash equivalents and investments was $2.78 billion, up from $2.55
billion reported in previous quarter. Considering the company's
total outstanding debt of $1.29 billion, net cash, cash
equivalents and investments was $1.35 billion.
Moreover, during the reported quarter, CA repurchased around 3
million shares of stock for $74.0 million.
For fiscal 2014, the company expects total revenue is expected to
decline in the range of 4.0% to 2.0%. CA expects growth in
non-GAAP earnings per share from continuing operations to decline
in the range of 4.0%-7.0%, amounting to $2.35 to $2.43. Cash flow
from continuing operations is expected to decline in the range of
29.0% to 35.0%. Moreover, the company has also declared that it
would be taking a charge of approximately $150 million in the
fiscal year 2014, which will help them to take care of its
CA Inc. reported mixed fourth-quarter results, with
bottom-line exceeding the Zacks Consensus Estimate and revenues
missing the same. Most of CA's revenue generating segments was
adversely affected during the reported quarter, yet cash position
improved sequentially. The company's guidance for fiscal 2014
appears to be modest.
However, we are positive about the CA Inc's increased cloud
exposure. Decent renewal rate, modest cash position and share
repurchase also appear encouraging. On the other hand, increasing
competition and exposure to Europe remain concerns.
CA currently has a Zacks Rank #3 (Hold).
Investors can also consider other stocks in the technology
industry that are currently performing well such as
Aspen Tech Inc.
) with a Zacks Rank #1 (Strong Buy) and
) having a Zacks Rank#2.
ASPEN TECH INC (AZPN): Free Stock Analysis
CA INC (CA): Free Stock Analysis Report
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SYMANTEC CORP (SYMC): Free Stock Analysis
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