CA Technologies saw a 3% decline in revenue to $1.16bn in Q314, while net income fell 8% to $232m but it was still a ‘solid’ quarter according to CEO Mike Gregoire because the company outperformed on revenue, was “pleased” with renewals and maintained discipline on cost control. Under Gregoire the company is reworking the business – see our analysis CA Technologies: remixing the business, here– but there is a long way to go.
The Mainframe solutions revenue line was flat which is not surprising but Enterprise Solutions was down 6%. Reversing this will be the marker for how well the reworking plans are playing out. There are positive indicators for the business as a whole however because the company has updated FY14 guidance and now expects a revenue decrease in the -2% to -1% range (constant currency) vs. previous guidance of -3% to-2%. FY14 revenue is expected to come in at between $4.52m to $4.57m.