CA Technologies revenue shows stability in all divisions

CA Technologies CEO Mike Gregoire
Business software company CA Technologies showed stable performance in all its divisions, and its revenue fell marginally to $4,025 million (–1 percent) in fiscal 2016 and $1,009 million in Q4 fiscal 2016 due to foreign exchange fluctuations.

The company could maintain its revenue mainly due to a series of acquisition in the last 12 months.

CA Technologies generated $2,215 million (–7 percent) from mainframe solutions, $1,484 million (–2 percent) from enterprise solutions and $326 million (–7 percent) from services during fiscal 2016.

Mainframe Solutions revenue of CA Technologies declined primarily due to an unfavorable foreign exchange effect and, to a lesser extent, insufficient revenue from new sales to offset the decline in revenue contribution from renewals.

Enterprise Solutions revenue of CA Technologies fell due to an unfavorable foreign exchange effect. Excluding the unfavorable effect of foreign exchange, Enterprise Solutions revenue increased as a result of additional revenue associated with its acquisitions, which contributed approximately 5 points of revenue growth.

Services revenue of CA Technologies decreased primarily due to an unfavorable foreign exchange effect and, to a lesser extent, a decline in professional services engagements in the first half of fiscal 2016 and during fiscal 2015, partially offset by an increase in services revenue from Rally acquisition.

Mike Gregoire, chief executive officer of CA Technologies, said: “Efforts to reposition the product portfolio, refine our go-to-market strategy, and sharpen our focus on customer success have culminated in new sales growth for the year.”

North America contributes 67 percent of the revenue of CA Technologies. The company executed 48 license deals with incremental contract values in excess of $10 million each, for $1.965 billion. During fiscal 2015, the company signed 51 license agreements with incremental contract values in excess of $10 million each, for $1.448 billion.

CA Technologies expects revenue to increase in a range of flat to plus 1 percent to reported revenue of $4.04 billion to $4.08 billion during the current fiscal year.

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