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CA Technologies reported financial results for its second quarter fiscal 2017, which ended September 30, 2016.
Mike Gregoire, CA Technologies Chief Executive Officer, said: “CA delivered solid second quarter results. We reported another quarter of revenue growth with strong margins and earnings, and we are making progress across a number of our key initiatives. Our product development and innovation engines are beginning to gain momentum, and we’re pleased with our improving customer experience metrics. At the same time, we recognize we still have work ahead of us. We continue to manage the business with thoughtful discipline, and I remain confident that we are moving the company in the right direction.
“At CA World next month we will welcome thousands of our customers and partners from around the globe. We look forward to demonstrating the transformational power of software, and the critical role it plays in driving today's new business models and strategies.”
| (dollars in millions, except share data) | Second Quarter FY17 vs. FY16 | |||||
| FY17 | FY16 | % Change | % Change CC* | |||
| Revenue | $1,018 | $1,005 | 1% | 2% | ||
| GAAP Income from Continuing Operations | $212 | $172 | 23% | 24% | ||
| Non-GAAP Income from Continuing Operations* | $283 | $247 | 15% | 13% | ||
| GAAP Diluted EPS from Continuing Operations | $0.50 | $0.39 | 28% | 31% | ||
| Non-GAAP Diluted EPS from Continuing Operations* | $0.67 | $0.56 | 20% | 18% | ||
| Cash Flow (used in) provided by Continuing Operations | ($58) | $43 | (235)% | (239)% | ||
* Non-GAAP income, Non-GAAP earnings per share and CC or Constant Currency 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.
REVENUE AND BOOKINGS
| (dollars in millions) | Second Quarter FY17 vs. FY16 | |||||||
| FY17 | % of Total |
FY16 | % of Total |
% Change |
% Change CC* |
|||
| North America Revenue | $690 | 68% | $677 | 67% | 2% | 2% | ||
| International Revenue | $328 | 32% | $328 | 33% | 0% | 1% | ||
| Total Revenue | $1,018 | $1,005 | 1% | 2% | ||||
| North America Bookings | $479 | 66% | $1,173 | 85% | (59)% | (59)% | ||
| International Bookings | $250 | 34% | $210 | 15% | 19% | 18% | ||
| Total Bookings | $729 | $1,383 | (47)% | (47)% | ||||
| Current Revenue Backlog | $2,945 | $3,006 | (2)% | (2)% | ||||
| Total Revenue Backlog | $6,858 | $6,614 | 4% | 4% | ||||
*CC or Constant Currency is a non-GAAP financial measure, 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.
- Total revenue increased as a result of an increase in software fees and other revenue, partially offset by decreases in professional services revenue and subscription and maintenance revenue. The increase in software fees and other revenue was primarily due to an increase in sales of enterprise solutions products recognized on an upfront basis and an increase in SaaS revenue, primarily from CA Agile Central products (acquired from Rally Software Development Corp. (Rally)).
- Total bookings decreased primarily due to a renewal with a large system integrator in excess of $500 million that occurred during the second quarter of fiscal 2016 and, to a lesser extent, a decrease in mainframe renewals.
- The Company executed a total of 11 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $209 million. During the second quarter of fiscal 2016, the Company executed a total of 11 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $887 million, including the aforementioned large system integrator transaction.
- The weighted average duration of subscription and maintenance bookings for the quarter was 2.99 years, compared with 4.46 years for the same period in fiscal 2016.
EXPENSES, MARGIN AND EARNINGS PER SHARE
| (dollars in millions) | Second Quarter FY17 vs. FY16 | |||||
| FY17 | FY16 | % Change |
% Change CC** |
|||
| GAAP | ||||||
| Operating Expenses Before Interest and Income Taxes | $698 | $746 | (6)% | (6)% | ||
| Operating Income Before Interest and Income Taxes | $320 | $259 | 24% | 25% | ||
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