) recently won a deal from the Swift Exchange, which selected the
CA SiteMinder to improve the security and accessibility of its
loyalty program commerce system, which is also called Swift
It is expected that the single sign-on, flexible authentication,
policy-based authorization, and improved scalability, reliability
and availability would increase the efficiency of the new Swift
Exchange system, thereby reducing its cost of operation.
However, CA is not limiting itself to the enterprise segment.
The company is also focused on innovation for the education sector,
which is showing some promise. To tap this opportunity, CA is
hosting an education show, which it called May Mainframe Madness
2012 (MMM 2012), a free, virtual trade show delivering educational
presentations to customers around the globe throughout the month of
This apart, CA has made strategic moves to capitalize on its
virtualization/cloud computing expertise, which is expected to be
accretive to growth over the next two-three years. Cloud computing
leads to increased service and elevated security requirements for
the companies that use it and CA's product portfolio is well
positioned to benefit from it.
Although the company is growing through initiatives in the IT
security and cloud computing segments, both of these come under the
broad umbrella ofthe information technology (IT) management
software market, where competition is stiff. While CA remains a
leading player in its served markets, we recognize that these
markets are not without challenges.
This apart, CA encounters aggressive competition in other areas
of its business activity like financial and project management,
anti-spy or antivirus software segment, etc. Some of CA's largest
International Business Machine
Although CA has posted decent third quarter results with
improvement in revenue and profit, the product demand trend was
moderate in the reported quarter. We believe that the company
provided conservative fiscal 2012 guidance. In addition, its high
debt balance, reduction in tech spending by government agencies and
European exposure may pose some challenges going forward.
The company has a Zacks #4 Rank (implying a Sell rating in the
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