Feeds

CA profits crash

1,700 casualties

Build a business case: developing custom apps

Business software giant CA is to cull 1,700 of its workforce. News of the massive restructure came as the firm released its Q1 2007 results and reported a 64 per cent drop in net income compared to the same period in 2006.

About half the cull will take place in North America, with the rest drawn from global operations. In all, 10.5 per cent of CA staffers are for the chop. Execs hope the plan, which is to be completed in 2008, will save the firm $200m annually. The redundancies themselves will cost the firm $200m.

Revenues were actually up slightly on the same period last year, rising from $927m to $956m, but net income sank to $35m, delivering GAAP earnings per share of $0.06, although they topped analyst estimates of $0.03. CA made a loss of $36m in Q4 2006.

CEO John Swainson, the man tasked with hauling the company back from years of accounting scandals, losses, top execs admitting fraud, and a revolving boardroom door, said: "We are not satisfied with our cost structure and we are implementing an expense reduction plan to improve the company’s efficiency and competitive position. These are the first steps in a long-term program to achieve a best-of-breed cost structure."

CA did not update its annual revenue forecast of $3.9bn, made on 29 June, but expects to do so when it reports its Q2 numbers. ®

The essential guide to IT transformation

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?