CA's ecosoftware Finds a New Taker - Analyst Blog

By Zacks Equity Research,

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CA Technologies ( CA ) recently revealed that its leading software product CA ecoSoftware has found a new taker in Anvil Knitwear, Inc. for managing its sustainability program worldwide. Anvil believes that this software has the capability of improving the Return On Investment ( ROI ) of the company.

CA ecoSoftware will help Anvil to better manage waste, water and energy to carry out its operations efficiently, optimize the use of raw materials and facilitate product manufacturing.  The solution will also help the company track the use of raw materials and sources of energy to sustain its operations and improve efficiency.

Apart from developing advanced ecofriendly software, CA has rolled out new cloud computing offerings. Cloud computing is increasingly becoming a focal point for the company. CA is leveraging its cloud computing expertise and rolling out innovative solutions specifically targeting opportunities in the area.

CA ecoSoftware primarily helps organizations to better manage their resources in an eco-friendly manner, thereby integrating the maintenance for delivering quality business services to support organizational goals. This solution also helps organizations to abide by the government pollution control norms.

Backed by good results in the recently concluded quarter, CA further seeks to expand into identity management and cloud computing areas to strengthen its business model. However, the product demand does not seem to be very strong right now, although fiscal 2012 guidance was conservative, in our view.

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 them and CA's product portfolio is well positioned to benefit from it.

On the other hand, we are apprehensive about other important players making strategic moves to grab a major chunk of the software & cloud computing space, including the likes of  International Business Machines ( IBM ) and Hewlett-Packard Company ( HPQ ). 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 short-term Zacks #1 Rank (implying a Strong Buy rating).

CA INC ( CA ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: CA , HPQ , IBM , ROI

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