CA Inc. Reports Operating Results (10-K)

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May 11, 2012
CA Inc. (CA, Financial) filed Annual Report for the period ended 2012-03-31.

Ca Inc has a market cap of $12.96 billion; its shares were traded at around $26.12 with a P/E ratio of 12.8 and P/S ratio of 2.9. The dividend yield of Ca Inc stocks is 3.8%. Ca Inc had an annual average earning growth of 18.4% over the past 5 years.

Highlight of Business Operations:

Total revenue for fiscal 2012 increased 9% to $4,814 million compared with $4,429 million in fiscal 2011. The increase was primarily attributable to an increase in subscription and maintenance revenue, an increase in software fees and other revenue and to a lesser extent an increase in professional services revenue. The increase in subscription and maintenance revenue for fiscal 2012 compared with fiscal 2011 was primarily due to revenue associated with a five-year license agreement with a large IT outsourcer for approximately $500 million that was executed in the fourth quarter of fiscal 2011. For fiscal 2012, total revenue reflected a favorable foreign exchange effect of $89 million compared with fiscal 2011. Revenue increased 7% from existing products and services and 2% from acquired businesses (which we define as businesses acquired within the prior 12 months). The growth in revenue from existing products and services was positively affected by the aforementioned license agreement with a large IT outsourcer, the favorable effect of foreign exchange and increases in software fees and other revenue. Excluding the foreign exchange effect, revenue increased 5% from existing products and services and 2% from acquired businesses.

No provision has been made for U.S. federal income taxes on $1,999 million and $1,719 million at March 31, 2012 and 2011, respectively, of unremitted earnings of our foreign subsidiaries since we plan to permanently reinvest all such earnings outside the United States. It is not practicable to determine the amount of tax associated with such unremitted earnings.

The results of discontinued operations for fiscal 2012, 2011 and 2010 included revenue of $15 million, $83 million and $126 million, respectively, and income from operations, net of taxes, of $13 million, $4 million and $12 million, respectively.

For fiscal 2011 and fiscal 2010, total bookings were $4,888 million and $4,843 million, respectively. Total fiscal 2011 bookings included the license agreement with a large IT outsourcer for approximately $500 million. The increase in bookings reflected favorable results for new product sales in connection with software fees and other bookings (recognized as software fees and other

For fiscal 2011 and fiscal 2010, subscription and maintenance bookings were $4,256 million and $4,322 million, respectively. The decrease in subscription and maintenance bookings was primarily attributable to a decrease in mainframe new product and capacity sales. During fiscal 2011, we renewed a total of 56 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $1,994 million. This includes a license agreement with a large IT outsourcer for approximately $500 million signed during the fourth quarter of fiscal 2011. This license agreement extends through fiscal 2016. During fiscal 2010, we renewed a total of 68 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $2,146 million. For fiscal 2011, annualized subscription and maintenance bookings increased from $1,221 million in fiscal 2010 to $1,230 million in fiscal 2011. The weighted average subscription and maintenance license agreement duration in years decreased slightly from 3.54 in fiscal 2010 to 3.46 in fiscal 2011.

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