CA Technologies revenue grows mainly due to acquisitions

CA Technologies and green
CA Technologies posted revenue of $1.093 billion (+9 percent) thanks to its acquisitions with a net loss of $93 million in the third quarter of fiscal 2018.

North America contributed 66 percent or $717 million of its total revenue.

CA Technologies revenue increased primarily due to an increase in software fees and other revenue. The acquisitions of Automic Holding and Veracode contributed approximately 6.5 points of revenue growth for the quarter.

“Across our portfolio, we are positioning CA as the pre-eminent IT partner for customers to build a Modern Software Factory that enables them to be agile, adapt more quickly to market disruption and customer demand, and deliver better and more secure business outcomes,” said CA Technologies CEO Mike Gregoire.

CA Technologies executed 13 license agreements with incremental contract values in excess of $10 million each, for $367 million in Q3. The company had executed 21 license agreements with incremental contract values in excess of $10 million each, for $577 million in Q3.

CA Technologies said Mainframe Solutions revenue at $552 million increased due to foreign exchange effect. Mainframe Solutions operating margin increased primarily due to a decrease in corporate overhead costs.

Enterprise Solutions revenue at $461 million increased primarily due to revenue generated from its Automic and Veracode acquisitions which contributed approximately 16 points of revenue growth. Enterprise Solutions operating margin decreased primarily due to costs associated with Automic and Veracode acquisitions.

Services revenue at $80 million increased primarily due to professional services revenue generated from our Automic and Veracode acquisitions. Operating margin for services increased primarily due to a decrease in personnel-related costs as a result of job cut in the third quarter of fiscal 2017.

CA Technologies is expecting its total revenue to increase approximately 5 percent to $4.22 billion in Q4.