CA reaps benefits of reaping employees
Hodge-podge management software omnicorp CA is making hay after its massive restructure last year. It has reported Q2 profits three times higher than a year ago when it had just started firing 1,700 staff.
Revenues for the three months to 30 September were up a relatively meagre eight per cent to $1.06bn. The cost-cutting regime has put a rocket up its margins, however, boosting GAAP net income to $137m, from $54m last year; a rise of 154 per cent.
CEO John Swainson, the man tasked with turning the company around when he was hired from IBM in 2004, said: "This marks CA's fourth consecutive quarter of solid performance. We will continue to invest in software technology... even as we improve our internal processes and sales and marketing efficiency."
Total expenses for the quarter were nine per cent lower at $823m.
An effort to restructure the timing of big contract renewals also boosted bookings 46 per cent. There were 16 deals worth more than $10m in the period.
CA shares jumped six per cent on the news in late trading yesterday. ®