CA misses sales target
Holds steady on profits
A weak performance from its services business dragged CA Q1 revenues below guidance. The software vendor now expects revenues for Q1, fiscal 2005 ended June 30 to come in at 830m to $850m, against earlier forecasts of $865m to $885m.
Also contributing to revenue shortfall was higher mix of maintenance in the indirect business "which is recorded on a prorated basis rather than during the quarter in which it is sold; and lower subscription revenue due to a slightly higher mix of subscription contract renewals than originally anticipated".
But CA is holding steady on guidance for earnings, which it is expects still to come in at between $0.05-$0.07 for GAAP earnings per share are expected to be and between $0.17 and $0.19 for Non-GAAP operating EPS.
Jeff Clarke, CA's chief operating officer, is satisfied with performance overall, "considering the current industry guidance". Excellent expense controls ensured the company met its earninging guidance in Q1 and should ensure it hits its earnings target in Q2, he said. The company forecasts revenue growth of five per cent to eight per cent for next quarter.
It will have a definitive set of Q1 results ready on 22 July, close of play. ®