| [May 11, 2016] |
 |
CA Technologies Reports Fourth Quarter and Full Fiscal Year 2016 Results
CA Technologies (NASDAQ:CA) today reported financial results for its
fourth quarter and full fiscal year 2016, which ended March 31, 2016.
Mike Gregoire, CA Technologies Chief Executive Officer, said:
"I am pleased to report that we achieved our guidance for full-year
revenue, operating margin and EPS results, and exceeded guidance for
full-year cash flow from continuing operations.
"Our 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. This was a notable
improvement relative to prior years. At the same time, there is still
work to do to drive the level of sustained growth that our company is
capable of delivering.
"Looking forward, we will continue to manage the business with
thoughtful discipline, and remain committed to our strategic imperative
of delivering long term growth and profitability."
|
FINANCIAL OVERVIEW
|
|
|
|
(dollars in millions, except share data)
|
|
Fourth Quarter FY16 vs. FY15
|
|
Full Year FY16 vs. FY15
|
|
|
FY16
|
|
FY15
|
|
%
Change
|
|
%
Change
CC**
|
|
FY16
|
|
FY15
|
|
%
Change
|
|
%
Change
CC**
|
|
Revenue
|
|
$1,009
|
|
$1,023
|
|
(1)%
|
|
1%
|
|
$4,025
|
|
$4,262
|
|
(6)%
|
|
(1)%
|
|
GAAP Income from Continuing Operations
|
|
$171
|
|
$145
|
|
18%
|
|
30%
|
|
$769
|
|
$810
|
|
(5)%
|
|
10%
|
|
Non-GAAP Income from Continuing Operations*
|
|
$252
|
|
$247
|
|
2%
|
|
15%
|
|
$1,050
|
|
$1,125
|
|
(7)%
|
|
3%
|
|
GAAP Diluted EPS from Continuing Operations
|
|
$0.41
|
|
$0.33
|
|
24%
|
|
36%
|
|
$1.78
|
|
$1.82
|
|
(2)%
|
|
13%
|
|
Non-GAAP Diluted EPS from Continuing Operations*
|
|
$0.60
|
|
$0.56
|
|
7%
|
|
21%
|
|
$2.43
|
|
$2.53
|
|
(4)%
|
|
6%
|
|
Cash Flow from Continuing Operations
|
|
$471
|
|
$485
|
|
(3)%
|
|
0%
|
|
$1,034
|
|
$1,030
|
|
0%
|
|
9%
|
|
* Non-GAAP income and non-GAAP earnings per share are non-GAAP
financial measures, as noted in the discussion of non-GAAP results
below. A reconciliation of non-GAAP financial measures to their
comparable GAAP financial measures is included in the tables
following this news release.
|
|
**CC: Constant Currency
|
|
|
REVENUE AND BOOKINGS
|
Fourth Quarter
|
|
(dollars in millions)
|
|
Fourth Quarter FY16 vs. FY15
|
|
|
FY16
|
|
% of
Total
|
|
FY15
|
|
% of
Total
|
|
%
Change
|
|
%
Change
CC**
|
|
North America Revenue
|
|
$681
|
|
67%
|
|
$682
|
|
67%
|
|
0%
|
|
0%
|
|
International Revenue
|
|
$328
|
|
33%
|
|
$341
|
|
33%
|
|
(4)%
|
|
3%
|
|
Total Revenue
|
|
$1,009
|
|
|
|
$1,023
|
|
|
|
(1)%
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Bookings
|
|
$636
|
|
66%
|
|
$727
|
|
68%
|
|
(13)%
|
|
(12)%
|
|
International Bookings
|
|
$324
|
|
34%
|
|
$342
|
|
32%
|
|
(5)%
|
|
(4)%
|
|
Total Bookings
|
|
$960
|
|
|
|
$1,069
|
|
|
|
(10)%
|
|
(10)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Revenue Backlog
|
|
$3,113
|
|
|
|
$3,141
|
|
|
|
(1)%
|
|
(1)%
|
|
Total Revenue Backlog
|
|
$6,829
|
|
|
|
$6,530
|
|
|
|
5%
|
|
4%
|
|
**CC: Constant Currency
|
|
|
-
Total revenue declined as a result of an unfavorable foreign exchange
effect of $28 million. Our fiscal 2016 acquisitions of Rally Software
Development Corp. and Xceedium, Inc. ("our fiscal 2016 acquisitions")
contributed approximately 3 points of revenue growth for the quarter.
-
Total bookings declined primarily due to lower renewals and, to a
lesser extent, lower new product sales.
-
The Company executed a total of 13 license agreements with incremental
contract values in excess of $10 million each, for an aggregate
contract value of $271 million. During the fourth quarter of fiscal
2015, the Company executed a total of 19 license agreements with
incremental contract values in excess of $10 million each, for an
aggregate contract value of $507 million.
-
The weighted average duration of subscription and maintenance bookings
for the quarter was 2.66 years, compared with 3.05 years for the same
period in fiscal 2015.
|
Full Year
|
|
(dollars in millions)
|
|
Full Year FY16 vs. FY15
|
|
|
FY16
|
|
% of
Total
|
|
FY15
|
|
% of
Total
|
|
%
Change
|
|
%
Change
CC**
|
|
North America Revenue
|
|
$2,712
|
|
67%
|
|
$2,766
|
|
65%
|
|
(2)%
|
|
(1)%
|
|
International Revenue
|
|
$1,313
|
|
33%
|
|
$1,496
|
|
35%
|
|
(12)%
|
|
1%
|
|
Total Revenue
|
|
$4,025
|
|
|
|
$4,262
|
|
|
|
(6)%
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Bookings
|
|
$2,987
|
|
70%
|
|
$2,353
|
|
65%
|
|
27%
|
|
28%
|
|
International Bookings
|
|
$1,260
|
|
30%
|
|
$1,256
|
|
35%
|
|
0%
|
|
11%
|
|
Total Bookings
|
|
$4,247
|
|
|
|
$3,609
|
|
|
|
18%
|
|
22%
|
|
**CC: Constant Currency
|
|
|
-
Total revenue declined primarily as a result of an unfavorable foreign
exchange effect of $212 million. Our fiscal 2016 acquisitions
contributed approximately 2 points of revenue growth for the year.
-
Total bookings grew primarily due to higher renewals, which included a
renewal with a large system integrator in excess of $500 million in
fiscal 2016 and, to a lesser extent, bookings related to our fiscal
2016 acquisitions.
-
The Company executed a total of 48 license agreements with incremental
contract values in excess of $10 million each, for an aggregate
contract value of $1.965 billion. During fiscal 2015, the Company
executed a total of 51 license agreements with incremental contract
values in excess of $10 million each, for an aggregate contract value
of $1.448 billion.
-
The weighted average duration of subscription and maintenance bookings
for fiscal 2016 was 3.71 years, compared with 3.24 years for fiscal
2015.
EXPENSES, MARGIN AND EARNINGS PER SHARE
|
Fourth Quarter
|
|
(dollars in millions)
|
|
Fourth Quarter FY16 vs. FY15
|
|
|
FY16
|
|
FY15
|
|
%
Change
|
|
%
Change
CC**
|
|
GAAP
|
|
|
|
Operating Expenses Before Interest and Income Taxes
|
|
$730
|
|
$812
|
|
(10)%
|
|
(10)%
|
|
Operating Income Before Interest and Income Taxes
|
|
$279
|
|
$211
|
|
32%
|
|
45%
|
|
GAAP Diluted EPS from Continuing Operations
|
|
$0.41
|
|
$0.33
|
|
24%
|
|
36%
|
|
Operating Margin
|
|
28%
|
|
21%
|
|
|
|
|
|
Effective Tax Rate
|
|
35.2%
|
|
28.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP*
|
|
|
|
Operating Expenses Before Interest and Income Taxes
|
|
$630
|
|
$693
|
|
(9)%
|
|
(11)%
|
|
Operating Income Before Interest and Income Taxes
|
|
$379
|
|
$330
|
|
15%
|
|
29%
|
|
Non-GAAP Diluted EPS from Continuing Operations
|
|
$0.60
|
|
$0.56
|
|
7%
|
|
21%
|
|
Operating Margin
|
|
38%
|
|
32%
|
|
|
|
|
|
Effective Tax Rate
|
|
30.8%
|
|
23.1%
|
|
|
|
|
|
*A reconciliation of non-GAAP financial measures to their comparable
GAAP financial measures is included in the tables following this
news release. Year-over-year non-GAAP results exclude purchased
software and other intangibles amortization, share-based
compensation, amortization of internal software costs, Board
approved workforce rebalancing initiatives and certain other gains
and losses. The results also include gains and losses on hedges that
mature within the quarter, but exclude gains and losses on hedges
that do not mature within the quarter.
|
|
**CC: Constant Currency
|
|
|
-
GAAP and non-GAAP operating expenses decreased primarily as a result
of a decline in non-acquisition personnel-related costs, partially
offset by costs from our fiscal 2016 acquisitions.
-
In the fourth quarter of fiscal 2015, GAAP and non-GAAP operating
expenses were affected by $40 million from severance costs.
-
GAAP EPS was positively impacted by $0.17 from an improvement in GAAP
operating margin, which was partially offset by $0.04 impact from
unfavorable foreign exchange and $0.04 impact from an increase in GAAP
effective tax rate.
-
Non-GAAP EPS was positively impacted by $0.17 from an improvement in
non-GAAP operating margin, which was partially offset by $0.07 impact
from unfavorable foreign exchange and $0.06 impact from an increase in
non-GAAP effective tax rate.
|
Full Year
|
|
(dollars in millions)
|
|
Full Year FY16 vs. FY15
|
|
|
FY16
|
|
FY15
|
|
%
Change
|
|
%
Change
CC**
|
|
GAAP
|
|
|
|
Operating Expenses Before Interest and Income Taxes
|
|
$2,890
|
|
$3,100
|
|
(7)%
|
|
(5)%
|
|
Operating Income Before Interest and Income Taxes
|
|
$1,135
|
|
$1,162
|
|
(2)%
|
|
11%
|
|
GAAP Diluted EPS from Continuing Operations
|
|
$1.78
|
|
$1.82
|
|
(2)%
|
|
13%
|
|
Operating Margin
|
|
28%
|
|
27%
|
|
|
|
|
|
Effective Tax Rate
|
|
29.1%
|
|
27.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP*
|
|
|
|
Operating Expenses Before Interest and Income Taxes
|
|
$2,494
|
|
$2,665
|
|
(6)%
|
|
(4)%
|
|
Operating Income Before Interest and Income Taxes
|
|
$1,531
|
|
$1,597
|
|
(4)%
|
|
5%
|
|
Non-GAAP Diluted EPS from Continuing Operations
|
|
$2.43
|
|
$2.53
|
|
(4)%
|
|
6%
|
|
Operating Margin
|
|
38%
|
|
37%
|
|
|
|
|
|
Effective Tax Rate
|
|
29.1%
|
|
27.4%
|
|
|
|
|
|
*A reconciliation of non-GAAP financial measures to their comparable
GAAP financial measures is included in the tables following this
news release. Year-over-year non-GAAP results exclude purchased
software and other intangibles amortization, share-based
compensation, amortization of internal software costs, Board
approved workforce rebalancing initiatives and certain other gains
and losses.
|
|
**CC: Constant Currency
|
|
|
-
GAAP and non-GAAP operating expenses decreased primarily as a result
of a decrease in non-acquisition personnel-related costs and a
favorable foreign exchange effect, partially offset by costs from our
fiscal 2016 acquisitions.
-
GAAP EPS was negatively impacted by $0.24 impact from unfavorable
foreign exchange, $0.08 impact from our fiscal 2016 acquisitions and
$0.04 impact from an increase in GAAP effective tax rate. These items
were partially offset by a $0.27 improvement in GAAP operating margin
and $0.05 increase from an overall share count reduction.
-
Non-GAAP EPS was negatively impacted by $0.24 impact from unfavorable
foreign exchange, $0.08 impact from our fiscal 2016 acquisitions and
$0.06 impact from an increase in non-GAAP effective tax rate. These
items were partially offset by a $0.21 improvement in non-GAAP
operating margin and $0.07 increase from an overall share count
reduction.
-
The increase in both GAAP and non-GAAP effective tax rates was
primarily due to the favorable resolutions of uncertain tax positions
in fiscal 2015 relating to the completion of the examination of our
U.S. federal income tax returns for the tax years ended March 31, 2011
and 2012.
SELECTED HIGHLIGHTS
Leadership and recognition during the quarter include:
-
CA Technologies was recognized as a 2016
World's Most Ethical Company® by the Ethisphere Institute, a
global leader in defining and advancing the standards of ethical
business practices.
-
For the fourth year in a row, CA Technologies was once again named as
a recipient of the NorthFace
ScoreBoard AwardSM from Omega Management Group Corp in
recognition of achieving excellence in customer service and support
for 2015.
-
CA Technologies was again named a leader by KuppingerCole in its
Leadership Compass: Access Management and Federation. (1)
-
CA Technologies was named a leader by the IDC Marketscape: Worldwide
Enterprise IT PPM 2016 Vendor Assessment. (2)
Customer traction for CA Technologies innovation during the quarter
include:
-
A global health insurance and benefits provider chose CA
Agile Central as their enterprise standard for agile management,
displacing deployments from two other vendors.
-
A leader in the global money-transfer space standardized on CA
Release Automation to accelerate and improve the quality of their
development processes.
-
A global consumer products company selected CA
Privileged Access Management after a competitive proof-of concept
evaluation for its ease of deployment and demonstrated value.
-
A multinational pharmaceutical company chose CA
Project and Portfolio Management SaaS for its IT operations and
M&A activities.
-
A leading SaaS company chose to expand its footprint with CA
API Management after observing the value of the product at one of
its acquired companies.
SEGMENT INFORMATION
|
Fourth Quarter
|
|
(dollars in millions)
|
|
Fourth Quarter FY16 vs. FY15
|
|
|
Revenue
|
|
%
Change
|
|
%
Change
CC**
|
|
Operating Margin
|
|
|
FY16
|
|
FY15
|
|
|
|
FY16
|
|
FY15
|
|
Mainframe Solutions
|
|
$547
|
|
$572
|
|
(4)%
|
|
(2)%
|
|
61%
|
|
56%
|
|
Enterprise Solutions
|
|
$380
|
|
$368
|
|
3%
|
|
6%
|
|
10%
|
|
4%
|
|
Services
|
|
$82
|
|
$83
|
|
(1)%
|
|
0%
|
|
7%
|
|
-4%
|
|
**CC: Constant Currency
|
|
|
-
Mainframe Solutions revenue declined primarily due to an unfavorable
foreign exchange effect and insufficient revenue from prior period new
sales to offset the decline in revenue contribution from renewals.
Operating margin increased compared with the year-ago period primarily
due to the decline in personnel-related costs.
-
Enterprise Solutions revenue increased as a result of additional
revenue associated with our fiscal 2016 acquisitions, which
contributed approximately 7 points of revenue growth for the quarter.
Operating margin increased primarily due to lower non-acquisition
related costs partially offset by additional costs from our fiscal
2016 acquisitions.
-
Services revenue decreased due to an unfavorable foreign exchange
effect. Operating margin improved primarily due to a decrease in
personnel-related costs as a result of our prior period severance
actions.
|
Full Year
|
|
(dollars in millions)
|
|
Full Year FY16 vs. FY15
|
|
|
Revenue
|
|
%
Change
|
|
%
Change
CC**
|
|
Operating Margin
|
|
|
FY16
|
|
FY15
|
|
|
|
FY16
|
|
FY15
|
|
Mainframe Solutions
|
|
$2,215
|
|
$2,392
|
|
(7)%
|
|
(2)%
|
|
61%
|
|
59%
|
|
Enterprise Solutions
|
|
$1,484
|
|
$1,519
|
|
(2)%
|
|
2%
|
|
10%
|
|
11%
|
|
Services
|
|
$326
|
|
$351
|
|
(7)%
|
|
(3)%
|
|
7%
|
|
3%
|
|
**CC: Constant Currency
|
|
|
-
Mainframe Solutions revenue 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. Mainframe Solutions operating margin increased primarily due
to a decrease in personnel-related costs.
-
Enterprise Solutions revenue declined 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 our fiscal 2016 acquisitions, which
contributed approximately 5 points of revenue growth for the year.
Enterprise Solutions operating margin decreased primarily due to costs
from our fiscal 2016 acquisitions, partially offset by a decrease in
non-acquisition personnel-related costs.
-
Services revenue 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
our Rally acquisition. Operating margin for Services increased
primarily due to a decrease in personnel-related costs as a result of
our prior period severance actions and a decrease in external
consulting costs.
CASH FLOW FROM OPERATIONS
-
Cash flow from continuing operations for the fourth quarter was $471
million, compared with $485 million in the prior year. Cash flow from
operations decreased primarily due to an unfavorable effect of foreign
exchange.
-
For the full year, cash flow from continuing operations was $1.034
billion, compared with $1.030 billion in the prior fiscal year. Cash
flow from operations increased slightly due to lower disbursements,
lower payments associated with our Fiscal Year 2014 Rebalancing Plan
and lower income tax payments, net, offset by a decrease in cash
collections from billings, which included lower single installment
payments. There was an overall unfavorable effect from foreign
exchange of $82 million on net cash provided by continuing operating
activities.
CAPITAL STRUCTURE
-
Cash, cash equivalents and investments at March 31, 2016 were $2.812
billion.
-
With $1.953 billion in total debt outstanding and $139 million in
notional pooling, the Company's net cash, cash equivalents and
investments position was $720 million.
-
For fiscal 2016, the Company repurchased 26 million shares of stock
for $707 million.
-
As of March 31, 2016, the Company is currently authorized to purchase
$750 million of its common stock under its current stock repurchase
program that was authorized in November 2015.
-
During the fourth quarter of fiscal 2016, the Company distributed $104
million in dividends to shareholders. For fiscal 2016, the Company
distributed $429 million in dividends to shareholders.
-
The Company's outstanding share count at March 31, 2016 was 413
million.
OUTLOOK FOR FISCAL 2017
The following outlook for fiscal 2017 contains "forward-looking
statements" (as defined below).
The Company expects the following:
-
Total revenue to increase in a range of flat to plus 1 percent in
constant currency. At March 31, 2016 exchange rates, this translates
to reported revenue of $4.04 billion to $4.08 billion.
-
GAAP diluted earnings per share from continuing operations to increase
in a range of 3 percent to 6 percent in constant currency. At
March 31, 2016 exchange rates, this translates to reported GAAP
diluted earnings per share from continuing operations of $1.92 to
$1.97.
-
Non-GAAP diluted earnings per share from continuing operations to
increase in a range of 1 percent to 3 percent in constant currency. At
March 31, 2016 exchange rates, this translates to reported non-GAAP
diluted earnings per share from continuing operations of $2.51 to
$2.56.
-
Cash flow from continuing operations to increase in a range of 1
percent to 5 percent in constant currency. At March 31, 2016 exchange
rates, this translates to reported cash flow from continuing
operations of $1.06 billion to $1.10 billion.
This outlook assumes no material acquisitions. The Company expects a
full-year GAAP operating margin of 30 percent and non-GAAP operating
margin of 38 percent. The Company also expects a full-year GAAP and
non-GAAP effective tax rate of between 28 percent and 29 percent.
The Company anticipates approximately 410 million shares outstanding at
fiscal 2017 year-end and weighted average diluted shares outstanding of
approximately 414 million for the fiscal year.
Webcast
This news release and the accompanying tables should be read in
conjunction with additional content that is available on the Company's
website, including a supplemental financial package, as well as a
conference call and webcast that the Company will host at 5:00 p.m. ET
today to discuss its unaudited fourth quarter and full fiscal year
results. The webcast will be archived on the website. Individuals can
access the webcast, as well as the press release and supplemental
financial information at http://ca.com/invest
or can listen to the call at 1-877-561-2748. The international
participant number is 1-720-545-0044.
(1) KuppingerCole Leadership Compass: Access Management and
Federation, March 2016
(2) 2016 IDC MarketScape: Worldwide Enterprise IT PPM 2016 Vendor
Assessment - Enabling Business Execution and Optimization, February
2016, IDC #US40473615
About CA Technologies
CA Technologies (NASDAQ:CA) creates software that fuels transformation
for companies and enables them to seize the opportunities of the
application economy. Software is at the heart of every business in every
industry. From planning, to development, to management and security, CA
is working with companies worldwide to change the way we live, transact,
and communicate - across mobile, private and public cloud, distributed
and mainframe environments. Learn more at www.ca.com.
Follow CA Technologies
Non-GAAP Financial Measures
This news release, the accompanying tables and the additional content
that is available on the Company's website, including a supplemental
financial package, include certain financial measures that exclude the
impact of certain items and therefore have not been calculated in
accordance with U.S. generally accepted accounting principles (GAAP).
Non-GAAP metrics for operating expenses, operating income, operating
margin, income from continuing operations and diluted earnings per share
exclude the following items: share-based compensation expense; non-cash
amortization of purchased software and other intangible assets; charges
relating to rebalancing initiatives that are large enough to require
approval from the Company's Board of Directors and certain other gains
and losses, which include the gains and losses since inception of hedges
that mature within the quarter, but exclude gains and losses of hedges
that do not mature within the quarter. The Company began expensing costs
for internally developed software where development efforts commenced in
the first quarter of fiscal 2014. Due to this change, the Company
excludes amortization of internally developed software costs previously
capitalized from these non-GAAP metrics. The effective tax rate on GAAP
and non-GAAP income from operations is the Company's provision for
income taxes expressed as a percentage of pre-tax GAAP and non-GAAP
income from continuing operations, respectively. These tax rates are
determined based on an estimated effective full year tax rate, with the
effective tax rate for GAAP generally including the impact of discrete
items in the period in which such items arise and the effective tax rate
for non-GAAP generally allocating the impact of discrete items pro rata
to the fiscal year's remaining reporting periods. Adjusted cash flow
from operations excludes payments associated with the fiscal 2014
Board-approved rebalancing initiative as described above, capitalized
software development costs as described above, and restructuring and
other payments. Free cash flow excludes purchases of property and
equipment and capitalized software development costs. The Company
presents constant currency information to provide a framework for
assessing how the Company's underlying businesses performed excluding
the effect of foreign currency rate fluctuations. To present this
information, current and comparative prior period results for entities
reporting in currencies other than U.S. dollars are converted into U.S.
dollars at the exchange rate in effect on the last day of the Company's
prior fiscal year (i.e., March 31, 2016, March 31, 2015, March 31, 2014
and March 31, 2013, respectively). Constant currency excludes the
impacts from the Company's hedging program. The constant currency
calculation for annualized subscription and maintenance bookings is
calculated by dividing the subscription and maintenance bookings in
constant currency by the weighted average subscription and maintenance
duration in years. These non-GAAP financial measures may be different
from non-GAAP financial measures used by other companies. Non-GAAP
financial measures should not be considered as a substitute for, or
superior to, measures of financial performance prepared in accordance
with GAAP. By excluding these items, non-GAAP financial measures
facilitate management's internal comparisons to the Company's historical
operating results and cash flows, to competitors' operating results and
cash flows, and to estimates made by securities analysts. Management
uses these non-GAAP financial measures internally to evaluate its
performance and they are key variables in determining management
incentive compensation. The Company believes these non-GAAP financial
measures are useful to investors in allowing for greater transparency of
supplemental information used by management in its financial and
operational decision-making. In addition, the Company has historically
reported similar non-GAAP financial measures to its investors and
believes that the inclusion of comparative numbers provides consistency
in its financial reporting. Investors are encouraged to review the
reconciliation of the non-GAAP financial measures used in this news
release to their most directly comparable GAAP financial measures, which
are attached to this news release.
Cautionary Statement Regarding Forward-Looking Statements
The declaration and payment of future dividends is subject to the
determination of the Company's Board of Directors, in its sole
discretion, after considering various factors, including the Company's
financial condition, historical and forecast operating results, and
available cash flow, as well as any applicable laws and contractual
covenants and any other relevant factors. The Company's practice
regarding payment of dividends may be modified at any time and from time
to time.
Repurchases under the Company's stock repurchase program may be made
from time to time, subject to market conditions and other factors, in
the open market, through solicited or unsolicited privately negotiated
transactions or otherwise. The program does not obligate the Company to
acquire any particular amount of common stock, and it may be modified or
suspended at any time at the Company's discretion.
Certain statements in this communication (such as statements containing
the words "believes," "plans," "anticipates," "expects," "estimates,"
"targets" and similar expressions relating to the future) constitute
"forward-looking statements" that are based upon the beliefs of, and
assumptions made by, the Company's management, as well as information
currently available to management. These forward-looking statements
reflect the Company's current views with respect to future events and
are subject to certain risks, uncertainties, and assumptions. A number
of important factors could cause actual results or events to differ
materially from those indicated by such forward-looking statements,
including: the ability to achieve success in the Company's strategy by,
among other things, enabling the Company's sales force to accelerate
growth of new product sales (at levels sufficient to offset any decline
in revenue in the Company's Mainframe Solutions segment), improving the
Company's brand, technology and innovation awareness in the marketplace,
ensuring the Company's offerings for cloud computing, application
development and IT operations (DevOps), Software-as-a-Service (SaaS),
and mobile device management, as well as other new offerings, address
the needs of a rapidly changing market, while not adversely affecting
the demand for the Company's traditional products or its profitability
to an extent greater than anticipated, and effectively managing the
strategic shift in the Company's business model to develop more easily
installed software, provide additional SaaS offerings and refocus the
Company's professional services and education engagements on those
engagements that are connected to new product sales, without affecting
the Company's performance to an extent greater than anticipated; the
failure to innovate or adapt to technological changes and introduce new
software products and services in a timely manner; competition in
product and service offerings and pricing; the ability of the Company's
products to remain compatible with ever-changing operating environments,
platforms or third party products; global economic factors or political
events beyond the Company's control and other business and legal risks
associated with non-U.S. operations; the failure to expand partner
programs and sales of our solutions by our partners; the ability to
retain and attract qualified professionals; general economic conditions
and credit constraints, or unfavorable economic conditions in a
particular region, industry or business sector; the ability to
successfully integrate acquired companies and products into the
Company's existing business; risks associated with sales to government
customers; breaches of the Company's data center, network, as well as
the Company's software products, and the IT environments of the
Company's vendors and customers; the ability to adequately manage,
evolve and protect the Company's information systems, infrastructure and
processes; the failure to renew large license transactions on a
satisfactory basis; fluctuations in foreign exchange rates; discovery of
errors or omissions in the Company's software products or documentation
and potential product liability claims; the failure to protect the
Company's intellectual property rights and source code; access to
software licensed from third parties; risks associated with the use of
software from open source code sources; third-party claims of
intellectual property infringement or royalty payments; fluctuations in
the number, terms and duration of the Company's license agreements, as
well as the timing of orders from customers and channel partners; events
or circumstances that would require the Company to record an impairment
charge relating to the Company's goodwill or capitalized software and
other intangible assets balances; potential tax liabilities; changes in
market conditions or the Company's credit ratings; changes in generally
accepted accounting principles; the failure to effectively execute the
Company's workforce reductions, workforce rebalancing and facilities
consolidations; successful and secure outsourcing of various functions
to third parties; and other factors described more fully in the
Company's filings with the Securities and Exchange Commission. Should
one or more of these risks or uncertainties occur, or should the
Company's assumptions prove incorrect, actual results may vary
materially from those described herein as believed, planned,
anticipated, expected, estimated, targeted or similarly expressed in a
forward-looking manner. The Company assumes no obligation to update the
information in this communication, except as otherwise required by law.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
Copyright © 2016 CA, Inc. All Rights Reserved. All other trademarks,
trade names, service marks, and logos referenced herein belong to their
respective companies.
|
Table 1
|
|
CA Technologies
|
|
Consolidated Statements of Operations
|
|
(unaudited)
|
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
Revenue:
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
Subscription and maintenance
|
|
$
|
821
|
|
|
$
|
851
|
|
|
$
|
3,317
|
|
|
$
|
3,560
|
|
|
|
Professional services
|
|
|
82
|
|
|
|
83
|
|
|
|
326
|
|
|
|
351
|
|
|
|
Software fees and other
|
|
|
106
|
|
|
|
89
|
|
|
|
382
|
|
|
|
351
|
|
|
|
Total revenue
|
|
$
|
1,009
|
|
|
$
|
1,023
|
|
|
$
|
4,025
|
|
|
$
|
4,262
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
Costs of licensing and maintenance
|
|
$
|
74
|
|
|
$
|
80
|
|
|
$
|
283
|
|
|
$
|
297
|
|
|
|
Cost of professional services
|
|
|
76
|
|
|
|
85
|
|
|
|
300
|
|
|
|
338
|
|
|
|
Amortization of capitalized software costs
|
|
|
64
|
|
|
|
69
|
|
|
|
256
|
|
|
|
273
|
|
|
|
Selling and marketing
|
|
|
255
|
|
|
|
278
|
|
|
|
1,006
|
|
|
|
1,060
|
|
|
|
General and administrative
|
|
|
88
|
|
|
|
108
|
|
|
|
367
|
|
|
|
377
|
|
|
|
Product development and enhancements
|
|
|
140
|
|
|
|
160
|
|
|
|
560
|
|
|
|
603
|
|
|
|
Depreciation and amortization of other intangible assets
|
|
|
23
|
|
|
|
30
|
|
|
|
106
|
|
|
|
129
|
|
|
|
Other expenses, net
|
|
|
10
|
|
|
|
2
|
|
|
|
12
|
|
|
|
23
|
|
|
|
Total expenses before interest and income taxes
|
|
$
|
730
|
|
|
$
|
812
|
|
|
$
|
2,890
|
|
|
$
|
3,100
|
|
|
|
Income from continuing operations before interest and income taxes
|
|
$
|
279
|
|
|
$
|
211
|
|
|
$
|
1,135
|
|
|
$
|
1,162
|
|
|
|
Interest expense, net
|
|
|
15
|
|
|
|
9
|
|
|
|
51
|
|
|
|
47
|
|
|
|
Income from continuing operations before income taxes
|
|
$
|
264
|
|
|
$
|
202
|
|
|
$
|
1,084
|
|
|
$
|
1,115
|
|
|
|
Income tax expense
|
|
|
93
|
|
|
|
57
|
|
|
|
315
|
|
|
|
305
|
|
|
|
Income from continuing operations
|
|
$
|
171
|
|
|
$
|
145
|
|
|
$
|
769
|
|
|
$
|
810
|
|
|
|
Income from discontinued operations, net of income taxes
|
|
$
|
3
|
|
|
$
|
6
|
|
|
$
|
14
|
|
|
$
|
36
|
|
|
|
Net income
|
|
$
|
174
|
|
|
$
|
151
|
|
|
$
|
783
|
|
|
$
|
846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per common share:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.41
|
|
|
$
|
0.33
|
|
|
$
|
1.79
|
|
|
$
|
1.83
|
|
|
|
Income from discontinued operations
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.08
|
|
|
|
Net income
|
|
$
|
0.42
|
|
|
$
|
0.34
|
|
|
$
|
1.82
|
|
|
$
|
1.91
|
|
|
|
Basic weighted average shares used in computation
|
|
|
413
|
|
|
|
437
|
|
|
|
426
|
|
|
|
439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per common share:
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$
|
0.41
|
|
|
$
|
0.33
|
|
|
$
|
1.78
|
|
|
$
|
1.82
|
|
|
|
Income from discontinued operations
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.03
|
|
|
|
0.08
|
|
|
|
Net income
|
|
$
|
0.42
|
|
|
$
|
0.34
|
|
|
$
|
1.81
|
|
|
$
|
1.90
|
|
|
|
Diluted weighted average shares used in computation
|
|
|
414
|
|
|
|
439
|
|
|
|
427
|
|
|
|
441
|
|
|
|
|
|
|
Results reflect the discontinued operations associated with the CA
ERwin Data Modeling and CA arcserve data protection businesses.
|
|
|
|
|
Table 2
|
|
CA Technologies
|
|
Condensed Consolidated Balance Sheets
|
|
(in millions)
|
|
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
(unaudited)
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
2,812
|
|
|
$
|
2,804
|
|
|
|
Trade accounts receivable, net
|
|
|
625
|
|
|
|
652
|
|
|
|
Deferred income taxes
|
|
|
-
|
|
|
|
318
|
|
|
|
Other current assets
|
|
|
124
|
|
|
|
212
|
|
|
|
Total current assets
|
|
$
|
3,561
|
|
|
$
|
3,986
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
$
|
242
|
|
|
$
|
252
|
|
|
|
Goodwill
|
|
|
6,086
|
|
|
|
5,806
|
|
|
|
Capitalized software and other intangible assets, net
|
|
|
795
|
|
|
|
731
|
|
|
|
Deferred income taxes
|
|
|
407
|
|
|
|
92
|
|
|
|
Other noncurrent assets, net
|
|
|
113
|
|
|
|
106
|
|
|
|
Total assets
|
|
$
|
11,204
|
|
|
$
|
10,973
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$
|
6
|
|
|
$
|
10
|
|
|
|
Deferred revenue (billed or collected)
|
|
|
2,197
|
|
|
|
2,114
|
|
|
|
Deferred income taxes
|
|
|
-
|
|
|
|
7
|
|
|
|
Other current liabilities
|
|
|
691
|
|
|
|
807
|
|
|
|
Total current liabilities
|
|
$
|
2,894
|
|
|
$
|
2,938
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of current portion
|
|
$
|
1,947
|
|
|
$
|
1,247
|
|
|
|
Deferred income taxes
|
|
|
3
|
|
|
|
45
|
|
|
|
Deferred revenue (billed or collected)
|
|
|
737
|
|
|
|
863
|
|
|
|
Other noncurrent liabilities
|
|
|
245
|
|
|
|
255
|
|
|
|
Total liabilities
|
|
$
|
5,826
|
|
|
$
|
5,348
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
$
|
59
|
|
|
$
|
59
|
|
|
|
Additional paid-in capital
|
|
|
3,664
|
|
|
|
3,631
|
|
|
|
Retained earnings
|
|
|
6,575
|
|
|
|
6,221
|
|
|
|
Accumulated other comprehensive loss
|
|
|
(416
|
)
|
|
|
(418
|
)
|
|
|
Treasury stock
|
|
|
(4,504
|
)
|
|
|
(3,868
|
)
|
|
|
Total stockholders' equity
|
|
$
|
5,378
|
|
|
$
|
5,625
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
11,204
|
|
|
$
|
10,973
|
|
|
|
|
|
Table 3
|
|
CA Technologies
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(unaudited)
|
|
(in millions)
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2016
|
|
2015
|
|
|
Operating activities from continuing operations:
|
|
|
|
|
|
|
Net income
|
|
$
|
174
|
|
|
$
|
151
|
|
|
|
Income from discontinued operations
|
|
|
(3
|
)
|
|
|
(6
|
)
|
|
|
Income from continuing operations
|
|
$
|
171
|
|
|
$
|
145
|
|
|
|
Adjustments to reconcile income from continuing operations to net
cash provided by operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
87
|
|
|
|
99
|
|
|
|
Deferred income taxes
|
|
|
(62
|
)
|
|
|
(10
|
)
|
|
|
Provision for bad debts
|
|
|
-
|
|
|
|
2
|
|
|
|
Share-based compensation expense
|
|
|
27
|
|
|
|
22
|
|
|
|
Other non-cash items
|
|
|
(1
|
)
|
|
|
4
|
|
|
|
Foreign currency transaction gains
|
|
|
(1
|
)
|
|
|
(3
|
)
|
|
|
Changes in other operating assets and liabilities, net of effect of
acquisitions:
|
|
|
|
|
|
|
Decrease (increase) in trade accounts receivable
|
|
|
4
|
|
|
|
(12
|
)
|
|
|
Increase in deferred revenue
|
|
|
248
|
|
|
|
307
|
|
|
|
Decrease in taxes payable, net
|
|
|
(25
|
)
|
|
|
(132
|
)
|
|
|
(Decrease) increase in accounts payable, accrued expenses and other
|
|
|
(12
|
)
|
|
|
29
|
|
|
|
Increase in accrued salaries, wages and commissions
|
|
|
25
|
|
|
|
22
|
|
|
|
Changes in other operating assets and liabilities
|
|
|
10
|
|
|
|
12
|
|
|
|
Net cash provided by operating activities - continuing operations
|
|
$
|
471
|
|
|
$
|
485
|
|
|
|
Investing activities from continuing operations:
|
|
|
|
|
|
|
Acquisitions of businesses, net of cash acquired, and purchased
software
|
|
$
|
-
|
|
|
$
|
(6
|
)
|
|
|
Purchases of property and equipment
|
|
|
(14
|
)
|
|
|
(7
|
)
|
|
|
Decrease in restricted cash
|
|
|
4
|
|
|
|
-
|
|
|
|
Other investing activities
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
Net cash used in investing activities - continuing operations
|
|
$
|
(11
|
)
|
|
$
|
(13
|
)
|
|
|
Financing activities from continuing operations:
|
|
|
|
|
|
|
Dividends paid
|
|
$
|
(104
|
)
|
|
$
|
(111
|
)
|
|
|
Purchases of common stock
|
|
|
(2
|
)
|
|
|
(90
|
)
|
|
|
Notional pooling borrowings, net
|
|
|
15
|
|
|
|
83
|
|
|
|
Debt repayments
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
Exercise of common stock options
|
|
|
3
|
|
|
|
1
|
|
|
|
Other financing activities
|
|
|
(1
|
)
|
|
|
-
|
|
|
|
Net cash used in financing activities - continuing operations
|
|
$
|
(90
|
)
|
|
$
|
(118
|
)
|
|
|
Effect of exchange rate changes on cash
|
|
$
|
62
|
|
|
$
|
(222
|
)
|
|
|
Net change in cash and cash equivalents - continuing operations
|
|
$
|
432
|
|
|
$
|
132
|
|
|
|
Cash used in operating activities - discontinued operations
|
|
$
|
(23
|
)
|
|
$
|
(11
|
)
|
|
|
Cash provided by investing activities - discontinued operations
|
|
|
50
|
|
|
|
-
|
|
|
|
Net effect of discontinued operations on cash and cash equivalents
|
|
$
|
27
|
|
|
$
|
(11
|
)
|
|
|
Increase in cash and cash equivalents
|
|
$
|
459
|
|
|
$
|
121
|
|
|
|
Cash and cash equivalents at beginning of period
|
|
$
|
2,353
|
|
|
$
|
2,683
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
2,812
|
|
|
$
|
2,804
|
|
|
|
|
|
|
Results reflect the discontinued operations associated with the CA
ERwin Data Modeling business.
|
|
|
|
|
Table 4
|
|
CA Technologies
|
|
Operating Segments
|
|
(unaudited)
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2016
|
|
Fiscal Year Ended March 31, 2016
|
|
|
|
|
Mainframe
|
|
Enterprise
|
|
|
|
|
|
Mainframe
|
|
Enterprise
|
|
|
|
|
|
|
|
|
Solutions (1)
|
|
Solutions (1)
|
|
Services (1)
|
|
Total
|
|
Solutions (1)
|
|
Solutions (1)
|
|
Services (1)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (2)
|
|
$
|
547
|
|
|
$
|
380
|
|
|
$
|
82
|
|
|
$
|
1,009
|
|
|
$
|
2,215
|
|
|
$
|
1,484
|
|
|
$
|
326
|
|
|
$
|
4,025
|
|
|
|
Expenses (3)
|
|
|
213
|
|
|
|
341
|
|
|
|
76
|
|
|
|
630
|
|
|
|
854
|
|
|
|
1,337
|
|
|
|
303
|
|
|
|
2,494
|
|
|
|
Segment profit
|
|
$
|
334
|
|
|
$
|
39
|
|
|
$
|
6
|
|
|
$
|
379
|
|
|
$
|
1,361
|
|
|
$
|
147
|
|
|
$
|
23
|
|
|
$
|
1,531
|
|
|
|
Segment operating margin
|
|
|
61
|
%
|
|
|
10
|
%
|
|
|
7
|
%
|
|
|
38
|
%
|
|
|
61
|
%
|
|
|
10
|
%
|
|
|
7
|
%
|
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
|
|
|
|
|
|
|
$
|
379
|
|
|
|
|
|
|
|
|
$
|
1,531
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
|
|
|
|
|
|
40
|
|
|
|
|
|
|
|
|
|
146
|
|
|
|
Other intangibles amortization
|
|
|
|
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
44
|
|
|
|
Internally developed software products amortization
|
|
|
|
|
|
|
|
|
24
|
|
|
|
|
|
|
|
|
|
110
|
|
|
|
Share-based compensation expense
|
|
|
|
|
|
|
|
|
27
|
|
|
|
|
|
|
|
|
|
97
|
|
|
|
Other expenses (gains), net (4)
|
|
|
|
|
|
|
|
|
1
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
51
|
|
|
|
Income from continuing operations before income taxes
|
|
|
|
|
|
|
|
$
|
264
|
|
|
|
|
|
|
|
|
$
|
1,084
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2015
|
|
Fiscal Year Ended March 31, 2015
|
|
|
|
|
Mainframe
|
|
Enterprise
|
|
|
|
|
|
Mainframe
|
|
Enterprise
|
|
|
|
|
|
|
|
|
Solutions (1)
|
|
Solutions (1)
|
|
Services (1)
|
|
Total
|
|
Solutions (1)
|
|
Solutions (1)
|
|
Services (1)
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (2)
|
|
$
|
572
|
|
|
$
|
368
|
|
|
$
|
83
|
|
|
$
|
1,023
|
|
|
$
|
2,392
|
|
|
$
|
1,519
|
|
|
$
|
351
|
|
|
$
|
4,262
|
|
|
|
Expenses (3)
|
|
|
253
|
|
|
|
354
|
|
|
|
86
|
|
|
|
693
|
|
|
|
970
|
|
|
|
1,353
|
|
|
|
342
|
|
|
|
2,665
|
|
|
|
Segment profit
|
|
$
|
319
|
|
|
$
|
14
|
|
|
$
|
(3
|
)
|
|
$
|
330
|
|
|
$
|
1,422
|
|
|
$
|
166
|
|
|
$
|
9
|
|
|
$
|
1,597
|
|
|
|
Segment operating margin
|
|
|
56
|
%
|
|
|
4
|
%
|
|
|
-4
|
%
|
|
|
32
|
%
|
|
|
59
|
%
|
|
|
11
|
%
|
|
|
3
|
%
|
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment profit
|
|
|
|
|
|
|
|
$
|
330
|
|
|
|
|
|
|
|
|
$
|
1,597
|
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
|
|
|
|
|
|
37
|
|
|
|
|
|
|
|
|
|
124
|
|
|
|
Other intangibles amortization
|
|
|
|
|
|
|
|
|
13
|
|
|
|
|
|
|
|
|
|
58
|
|
|
|
Internally developed software products amortization
|
|
|
|
|
|
|
|
|
32
|
|
|
|
|
|
|
|
|
|
149
|
|
|
|
Share-based compensation expense
|
|
|
|
|
|
|
|
|
22
|
|
|
|
|
|
|
|
|
|
87
|
|
|
|
Other expenses, net (4)
|
|
|
|
|
|
|
|
|
15
|
|
|
|
|
|
|
|
|
|
17
|
|
|
|
Interest expense, net
|
|
|
|
|
|
|
|
|
9
|
|
|
|
|
|
|
|
|
|
47
|
|
|
|
Income from continuing operations before income taxes
|
|
|
|
|
|
|
|
$
|
202
|
|
|
|
|
|
|
|
|
$
|
1,115
|
|
|
(1)
|
|
The Company's Mainframe Solutions and Enterprise Solutions segments
comprise its software business organized by the nature of the
Company's software offerings and the platform on which the products
operate. The Services segment comprises product implementation,
consulting, customer education and customer training, including
those directly related to the Mainframe Solutions and Enterprise
Solutions software that the Company sells to its customers.
|
|
|
|
|
|
(2)
|
|
The Company regularly enters into a single arrangement with a
customer that includes mainframe solutions, enterprise solutions and
services. The amount of contract revenue assigned to operating
segments is generally based on the manner in which the proposal is
made to the customer. The software product revenue is assigned to
the Mainframe Solutions and Enterprise Solutions segments based on
either: (1) a list price allocation method (which allocates a
discount in the total contract price to the individual products in
proportion to the list price of the product); (2) allocations
included within internal contract approval documents; or (3) the
value for individual software products as stated in the customer
contract. The price for the implementation, consulting, education
and training services is separately stated in the contract and these
amounts of contract revenue are assigned to the Services segment.
The contract value assigned to each operating segment is then
recognized in a manner consistent with the revenue recognition
policies the Company applies to the customer contract for purposes
of preparing the Consolidated Financial Statements.
|
|
|
|
|
|
(3)
|
|
Segment expenses include costs that are controllable by segment
managers (i.e., direct costs) and, in the case of the Mainframe
Solutions and Enterprise Solutions segments, an allocation of shared
and indirect costs (i.e., allocated costs). Segment-specific direct
costs include a portion of selling and marketing costs, licensing
and maintenance costs, product development costs and general and
administrative costs. Allocated segment costs primarily include
indirect and non-segment specific direct selling and marketing costs
and general and administrative costs that are not directly
attributable to a specific segment. The basis for allocating shared
and indirect costs between the Mainframe Solutions and Enterprise
Solutions segments is dependent on the nature of the cost being
allocated and is either in proportion to segment revenues or in
proportion to the related direct cost category. Expenses for the
Services segment consist of cost of professional services and other
direct costs included within selling and marketing and general and
administrative expenses. There are no allocated or indirect costs
for the Services segment.
|
|
|
|
|
|
(4)
|
|
Other expenses (gains), net consists of costs associated with the
FY2014 Board approved rebalancing initiative (the Fiscal 2014 Plan),
certain foreign exchange derivative hedging gains and losses, and
other miscellaneous costs.
|
|
|
|
|
|
|
|
Results reflect the discontinued operations associated with the CA
ERwin Data Modeling and CA arcserve data protection businesses.
|
|
|
|
|
|
Table 5
|
|
CA Technologies
|
|
Constant Currency Summary
|
|
(unaudited)
|
|
(dollars in millions)
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
Fiscal Year Ended March 31,
|
|
|
|
|
|
|
|
|
|
|
% Increase
|
|
|
|
|
|
|
|
% Increase
|
|
|
|
|
|
|
|
|
% Increase
|
|
(Decrease)
|
|
|
|
|
|
% Increase
|
|
(Decrease)
|
|
|
|
|
|
|
|
|
(Decrease)
|
|
in Constant
|
|
|
|
|
|
(Decrease)
|
|
in Constant
|
|
|
|
|
2016
|
|
2015
|
|
in $ US
|
|
Currency (1)
|
|
2016
|
|
2015
|
|
in $ US
|
|
Currency (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings
|
|
$
|
960
|
|
|
$
|
1,069
|
|
|
(10
|
)%
|
|
(10
|
)%
|
|
$
|
4,247
|
|
|
$
|
3,609
|
|
|
18
|
%
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
$
|
681
|
|
|
$
|
682
|
|
|
0
|
%
|
|
0
|
%
|
|
$
|
2,712
|
|
|
$
|
2,766
|
|
|
(2
|
)%
|
|
(1
|
)%
|
|
|
International
|
|
|
328
|
|
|
|
341
|
|
|
(4
|
)%
|
|
3
|
%
|
|
|
1,313
|
|
|
|
1,496
|
|
|
(12
|
)%
|
|
1
|
%
|
|
|
Total revenue
|
|
$
|
1,009
|
|
|
$
|
1,023
|
|
|
(1
|
)%
|
|
1
|
%
|
|
$
|
4,025
|
|
|
$
|
4,262
|
|
|
(6
|
)%
|
|
(1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and maintenance
|
|
$
|
821
|
|
|
$
|
851
|
|
|
(4
|
)%
|
|
(1
|
)%
|
|
$
|
3,317
|
|
|
$
|
3,560
|
|
|
(7
|
)%
|
|
(2
|
)%
|
|
|
Professional services
|
|
|
82
|
|
|
|
83
|
|
|
(1
|
)%
|
|
0
|
%
|
|
|
326
|
|
|
|
351
|
|
|
(7
|
)%
|
|
(3
|
)%
|
|
|
Software fees and other
|
|
|
106
|
|
|
|
89
|
|
|
19
|
%
|
|
23
|
%
|
|
|
382
|
|
|
|
351
|
|
|
9
|
%
|
|
13
|
%
|
|
|
Total revenue
|
|
$
|
1,009
|
|
|
$
|
1,023
|
|
|
(1
|
)%
|
|
1
|
%
|
|
$
|
4,025
|
|
|
$
|
4,262
|
|
|
(6
|
)%
|
|
(1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mainframe solutions
|
|
$
|
547
|
|
|
$
|
572
|
|
|
(4
|
)%
|
|
(2
|
)%
|
|
$
|
2,215
|
|
|
$
|
2,392
|
|
|
(7
|
)%
|
|
(2
|
)%
|
|
|
Enterprise solutions
|
|
$
|
380
|
|
|
|
368
|
|
|
3
|
%
|
|
6
|
%
|
|
|
1,484
|
|
|
|
1,519
|
|
|
(2
|
)%
|
|
2
|
%
|
|
|
Services
|
|
|
82
|
|
|
|
83
|
|
|
(1
|
)%
|
|
0
|
%
|
|
|
326
|
|
|
|
351
|
|
|
(7
|
)%
|
|
(3
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses before interest and income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP (2)
|
|
$
|
630
|
|
|
$
|
693
|
|
|
(9
|
)%
|
|
(11
|
)%
|
|
$
|
2,494
|
|
|
$
|
2,665
|
|
|
(6
|
)%
|
|
(4
|
)%
|
|
|
Total GAAP
|
|
|
730
|
|
|
|
812
|
|
|
(10
|
)%
|
|
(10
|
)%
|
|
|
2,890
|
|
|
|
3,100
|
|
|
(7
|
)%
|
|
(5
|
)%
|
|
(1)
|
|
Constant currency information is presented to provide a framework
for assessing how the Company's underlying businesses performed
excluding the effect of foreign currency rate fluctuations. To
present this information, current and comparative prior period
results for entities reporting in currencies other than U.S. dollars
are converted into U.S. dollars at the exchange rate in effect on
March 31, 2015, which was the last day of the prior fiscal year.
Constant currency excludes the impacts from the Company's hedging
program.
|
|
|
|
|
|
(2)
|
|
Refer to Table 7 for a reconciliation of total expenses before
interest and income taxes to total non-GAAP operating expenses.
|
|
|
|
|
|
|
|
Results reflect the discontinued operations associated with the CA
ERwin Data Modeling and CA arcserve data protection businesses.
|
|
|
|
|
|
|
|
Certain non-material differences may arise versus actual from impact
of rounding.
|
|
|
|
|
|
Table 6
|
|
CA Technologies
|
|
Reconciliation of Select GAAP Measures to Non-GAAP Measures
|
|
(unaudited)
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
GAAP net income
|
|
$
|
174
|
|
|
$
|
151
|
|
|
$
|
783
|
|
|
$
|
846
|
|
|
|
GAAP income from discontinued operations, net of income taxes
|
|
|
(3
|
)
|
|
|
(6
|
)
|
|
|
(14
|
)
|
|
|
(36
|
)
|
|
|
GAAP income from continuing operations
|
|
$
|
171
|
|
|
$
|
145
|
|
|
$
|
769
|
|
|
$
|
810
|
|
|
|
GAAP income tax expense
|
|
|
93
|
|
|
|
57
|
|
|
|
315
|
|
|
|
305
|
|
|
|
Interest expense, net
|
|
|
15
|
|
|
|
9
|
|
|
|
51
|
|
|
|
47
|
|
|
|
GAAP income from continuing operations before interest and income
taxes
|
|
$
|
279
|
|
|
$
|
211
|
|
|
$
|
1,135
|
|
|
$
|
1,162
|
|
|
|
GAAP operating margin (% of revenue) (1)
|
|
|
28
|
%
|
|
|
21
|
%
|
|
|
28
|
%
|
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments to expenses:
|
|
|
|
|
|
|
|
|
|
|
Costs of licensing and maintenance (2)
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
7
|
|
|
$
|
5
|
|
|
|
Cost of professional services (2)
|
|
|
1
|
|
|
|
1
|
|
|
|
4
|
|
|
|
4
|
|
|
|
Amortization of capitalized software costs (3)
|
|
|
64
|
|
|
|
69
|
|
|
|
256
|
|
|
|
273
|
|
|
|
Selling and marketing (2)
|
|
|
9
|
|
|
|
7
|
|
|
|
34
|
|
|
|
30
|
|
|
|
General and administrative (2)
|
|
|
10
|
|
|
|
8
|
|
|
|
35
|
|
|
|
29
|
|
|
|
Product development and enhancements (2)
|
|
|
5
|
|
|
|
5
|
|
|
|
17
|
|
|
|
19
|
|
|
|
Depreciation and amortization of other intangible assets (4)
|
|
|
8
|
|
|
|
13
|
|
|
|
44
|
|
|
|
58
|
|
|
|
Other expenses (gains), net (5)
|
|
|
1
|
|
|
|
15
|
|
|
|
(1
|
)
|
|
|
17
|
|
|
|
Total Non-GAAP adjustment to operating expenses
|
|
$
|
100
|
|
|
$
|
119
|
|
|
$
|
396
|
|
|
$
|
435
|
|
|
|
Non-GAAP income from continuing operations before interest and
income taxes
|
|
$
|
379
|
|
|
$
|
330
|
|
|
$
|
1,531
|
|
|
$
|
1,597
|
|
|
|
Non-GAAP operating margin (% of revenue) (6)
|
|
|
38
|
%
|
|
|
32
|
%
|
|
|
38
|
%
|
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
|
15
|
|
|
|
9
|
|
|
|
51
|
|
|
|
47
|
|
|
|
GAAP income tax expense
|
|
|
93
|
|
|
|
57
|
|
|
|
315
|
|
|
|
305
|
|
|
|
Non-GAAP adjustment to income tax expense (7)
|
|
|
19
|
|
|
|
17
|
|
|
|
115
|
|
|
|
120
|
|
|
|
Non-GAAP income tax expense
|
|
$
|
112
|
|
|
$
|
74
|
|
|
$
|
430
|
|
|
$
|
425
|
|
|
|
Non-GAAP income from continuing operations
|
|
$
|
252
|
|
|
$
|
247
|
|
|
$
|
1,050
|
|
|
$
|
1,125
|
|
|
(1)
|
|
GAAP operating margin is calculated by dividing GAAP income from
continuing operations before interest and income taxes by total
revenue (refer to Table 1 for total revenue).
|
|
|
|
|
|
(2)
|
|
Non-GAAP adjustment consists of share-based compensation.
|
|
|
|
|
|
(3)
|
|
For the three month periods ending March 31, 2016 and 2015, non-GAAP
adjustment consists of $40 million and $37 million of purchased
software amortization and $24 million and $32 million of internally
developed software products amortization, respectively. For the
twelve month periods ending March 31, 2016 and 2015, non-GAAP
adjustment consists of $146 million and $124 million of purchased
software amortization and $110 million and $149 million of
internally developed software products amortization, respectively.
|
|
|
|
|
|
(4)
|
|
Non-GAAP adjustment consists of other intangibles amortization.
|
|
|
|
|
|
(5)
|
|
Non-GAAP adjustment consists of charges relating to the FY2014 Board
approved rebalancing initiative (the Fiscal 2014 Plan) and certain
other gains and losses, including gains and losses since inception
of hedges that mature within the quarter, but excludes gains and
losses of hedges that do not mature within the quarter.
|
|
|
|
|
|
(6)
|
|
Non-GAAP operating margin is calculated by dividing non-GAAP income
from continuing operations before interest and income taxes by total
revenue (refer to Table 1 for total revenue).
|
|
|
|
|
|
(7)
|
|
The full year non-GAAP income tax expense is different from GAAP
income tax expense because of the difference in non-GAAP income from
continuing operations before income taxes. On an interim basis, this
difference would also include a difference in the impact of discrete
and permanent items where for GAAP purposes the effect is recorded
in the period such items arise, but for non-GAAP such items are
recorded pro rata to the fiscal year's remaining reporting periods.
|
|
|
|
|
|
|
|
Refer to the discussion of non-GAAP financial measures included in
the accompanying press release for additional information.
|
|
|
|
|
|
|
|
Results reflect the discontinued operations associated with the CA
ERwin Data Modeling and CA arcserve data protection businesses.
|
|
|
|
|
|
|
|
Certain non-material differences may arise versus actual from impact
of rounding.
|
|
|
|
|
|
Table 7
|
|
CA Technologies
|
|
Reconciliation of GAAP to Non-GAAP
|
|
Operating Expenses and Diluted Earnings per Share
|
|
(unaudited)
|
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
Operating Expenses
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses before interest and income taxes
|
|
$
|
730
|
|
|
$
|
812
|
|
|
$
|
2,890
|
|
|
$
|
3,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating adjustments:
|
|
|
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
40
|
|
|
|
37
|
|
|
|
146
|
|
|
|
124
|
|
|
|
Other intangibles amortization
|
|
|
8
|
|
|
|
13
|
|
|
|
44
|
|
|
|
58
|
|
|
|
Internally developed software products amortization
|
|
|
24
|
|
|
|
32
|
|
|
|
110
|
|
|
|
149
|
|
|
|
Share-based compensation
|
|
|
27
|
|
|
|
22
|
|
|
|
97
|
|
|
|
87
|
|
|
|
Other expenses (gains), net (1)
|
|
|
1
|
|
|
|
15
|
|
|
|
(1
|
)
|
|
|
17
|
|
|
|
Total non-GAAP operating adjustment
|
|
$
|
100
|
|
|
$
|
119
|
|
|
$
|
396
|
|
|
$
|
435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-GAAP operating expenses
|
|
$
|
630
|
|
|
$
|
693
|
|
|
$
|
2,494
|
|
|
$
|
2,665
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
Diluted EPS from Continuing Operations
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted EPS from continuing operations
|
|
$
|
0.41
|
|
|
$
|
0.33
|
|
|
$
|
1.78
|
|
|
$
|
1.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments, net of taxes:
|
|
|
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
0.06
|
|
|
|
0.06
|
|
|
|
0.24
|
|
|
|
0.20
|
|
|
|
Other intangibles amortization
|
|
|
0.01
|
|
|
|
0.02
|
|
|
|
0.07
|
|
|
|
0.10
|
|
|
|
Internally developed software products amortization
|
|
|
0.04
|
|
|
|
0.05
|
|
|
|
0.18
|
|
|
|
0.24
|
|
|
|
Share-based compensation
|
|
|
0.04
|
|
|
|
0.04
|
|
|
|
0.16
|
|
|
|
0.14
|
|
|
|
Other expenses, net (1)
|
|
|
-
|
|
|
|
0.02
|
|
|
|
-
|
|
|
|
0.03
|
|
|
|
Non-GAAP effective tax rate adjustments (2)
|
|
|
0.04
|
|
|
|
0.04
|
|
|
|
-
|
|
|
|
-
|
|
|
|
Total non-GAAP adjustment
|
|
$
|
0.19
|
|
|
$
|
0.23
|
|
|
$
|
0.65
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted EPS from continuing operations
|
|
$
|
0.60
|
|
|
$
|
0.56
|
|
|
$
|
2.43
|
|
|
$
|
2.53
|
|
|
(1)
|
|
Other expenses (gains), net consists of costs associated with the
FY2014 Board approved rebalancing initiative (the Fiscal 2014 Plan),
certain foreign exchange derivative hedging gains and losses, and
other miscellaneous costs.
|
|
|
|
|
|
(2)
|
|
The non-GAAP effective tax rate is equal to the full year GAAP
effective tax rate, therefore no adjustment is required on an annual
basis. On an interim basis, the difference in non-GAAP income tax
expense and GAAP income tax expense relates to the difference in
non-GAAP income from continuing operations before income taxes, and
includes a difference in the impact of discrete and permanent items
where for GAAP purposes the effect is recorded in the period such
items arise but for non-GAAP purposes such items are recorded pro
rata to the fiscal year's remaining reporting periods.
|
|
|
|
|
|
|
|
Refer to the discussion of non-GAAP financial measures included in
the accompanying press release for additional information.
|
|
|
|
|
|
|
|
Results reflect the discontinued operations associated with the CA
ERwin Data Modeling and CA arcserve data protection businesses.
|
|
|
|
|
|
|
|
Certain non-material differences may arise versus actual from impact
of rounding.
|
|
|
|
|
|
Table 8
|
|
CA Technologies
|
|
Effective Tax Rate Reconciliation
|
|
GAAP and Non-GAAP
|
|
(unaudited)
|
|
(dollars in millions)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
|
March 31, 2016
|
|
March 31, 2016
|
|
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before interest and income taxes (1)
|
|
$
|
279
|
|
|
$
|
379
|
|
|
$
|
1,135
|
|
|
$
|
1,531
|
|
|
|
Interest expense, net
|
|
|
15
|
|
|
|
15
|
|
|
|
51
|
|
|
|
51
|
|
|
|
Income from continuing operations before income taxes
|
|
$
|
264
|
|
|
$
|
364
|
|
|
$
|
1,084
|
|
|
$
|
1,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax at statutory rate
|
|
$
|
92
|
|
|
$
|
127
|
|
|
$
|
379
|
|
|
$
|
518
|
|
|
|
Adjustments for discrete and permanent items (2)
|
|
|
1
|
|
|
|
(15
|
)
|
|
|
(64
|
)
|
|
|
(88
|
)
|
|
|
Total tax expense
|
|
$
|
93
|
|
|
$
|
112
|
|
|
$
|
315
|
|
|
$
|
430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (3)
|
|
|
35.2
|
%
|
|
|
30.8
|
%
|
|
|
29.1
|
%
|
|
|
29.1
|
%
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
|
|
|
March 31, 2015
|
|
March 31, 2015
|
|
|
|
|
GAAP
|
|
Non-GAAP
|
|
GAAP
|
|
Non-GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before interest and income taxes (1)
|
|
$
|
211
|
|
|
$
|
330
|
|
|
$
|
1,162
|
|
|
$
|
1,597
|
|
|
|
Interest expense, net
|
|
|
9
|
|
|
|
9
|
|
|
|
47
|
|
|
|
47
|
|
|
|
Income from continuing operations before income taxes
|
|
$
|
202
|
|
|
$
|
321
|
|
|
$
|
1,115
|
|
|
$
|
1,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statutory tax rate
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax at statutory rate
|
|
$
|
71
|
|
|
$
|
112
|
|
|
$
|
390
|
|
|
$
|
543
|
|
|
|
Adjustments for discrete and permanent items (2)
|
|
|
(14
|
)
|
|
|
(38
|
)
|
|
|
(85
|
)
|
|
|
(118
|
)
|
|
|
Total tax expense
|
|
$
|
57
|
|
|
$
|
74
|
|
|
$
|
305
|
|
|
$
|
425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (3)
|
|
|
28.2
|
%
|
|
|
23.1
|
%
|
|
|
27.4
|
%
|
|
|
27.4
|
%
|
|
(1)
|
|
Refer to Table 6 for a reconciliation of income from continuing
operations before interest and income taxes on a GAAP basis to
income from continuing operations before interest and income taxes
on a non-GAAP basis.
|
|
|
|
|
|
(2)
|
|
The effective tax rate for GAAP generally includes the impact of
discrete and permanent items in the period such items arise, whereas
the effective tax rate for non-GAAP generally allocates the impact
of such items pro rata to the fiscal year's remaining reporting
periods.
|
|
|
|
|
|
(3)
|
|
The effective tax rate on GAAP and non-GAAP income from continuing
operations is the Company's provision for income taxes expressed as
a percentage of GAAP and non-GAAP income from continuing operations
before income taxes, respectively. The non-GAAP effective tax rate
is equal to the full year GAAP effective tax rate. On an interim
basis, the effective tax rates are determined based on an estimated
effective full year tax rate after the adjustments for the impacts
of certain discrete items (such as changes in tax rates,
reconciliations of tax returns to tax provisions and resolutions of
tax contingencies).
|
|
|
|
|
|
|
|
Refer to the discussion of non-GAAP financial measures included in
the accompanying press release for additional information.
|
|
|
|
|
|
|
|
Results reflect the discontinued operations associated with the CA
ERwin Data Modeling and CA arcserve data protection businesses.
|
|
|
|
|
|
|
|
Certain non-material differences may arise versus actual from impact
of rounding.
|
|
|
|
|
|
Table 9
|
|
CA Technologies
|
|
Reconciliation of Projected GAAP Metrics to Projected Non-GAAP
Metrics
|
|
(unaudited)
|
|
|
|
|
|
|
|
Fiscal Year Ending
|
|
|
Projected Diluted EPS from Continuing
Operations
|
|
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
Projected GAAP diluted EPS from continuing operations range
|
|
$
|
|
1.92
|
|
|
|
to
|
$
|
|
1.97
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments, net of taxes:
|
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
|
0.25
|
|
|
|
|
|
|
0.25
|
|
|
|
Other intangibles amortization
|
|
|
|
0.03
|
|
|
|
|
|
|
0.03
|
|
|
|
Internally developed software products amortization
|
|
|
|
0.14
|
|
|
|
|
|
|
0.14
|
|
|
|
Share-based compensation
|
|
|
|
0.17
|
|
|
|
|
|
|
0.17
|
|
|
|
Total non-GAAP adjustment
|
|
$
|
|
0.59
|
|
|
|
|
$
|
|
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected non-GAAP diluted EPS from continuing operations range
|
|
$
|
|
2.51
|
|
|
|
to
|
$
|
|
2.56
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ending
|
|
|
Projected Operating Margin
|
|
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
Projected GAAP operating margin
|
|
|
|
|
30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating adjustments:
|
|
|
|
|
|
|
|
|
Purchased software amortization
|
|
|
|
|
4
|
%
|
|
|
|
Other intangibles amortization
|
|
|
|
|
0
|
%
|
|
|
|
Internally developed software products amortization
|
|
|
|
|
2
|
%
|
|
|
|
Share-based compensation
|
|
|
|
|
2
|
%
|
|
|
|
Total non-GAAP operating adjustment
|
|
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Projected non-GAAP operating margin
|
|
|
|
|
38
|
%
|
|
Refer to the discussion of non-GAAP financial measures included in the
accompanying press release for additional information.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160511006513/en/
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