Feeds

CA new CEO says biz has 'room for improvement'

Time for honesty as Q3 sales and profits dip

Secure remote control for conventional and virtual desktops

Just three weeks into his tenure as CA CEO, Michael Gregoire clearly isn't culpable for the fall in both turnover and profits at the software biz and his upbeat tone confirms this.

The firm generated $1.2bn in sales, down four per cent in its fiscal Q3 ended 31 December including a $12m currency headwind. Operating profit slid ten per cent to $370m and net profit fell five per cent to $251m.

"This is the beginning of my third week as CEO of CA Technologies and it's great to be here," said Gregoire, who is replacing soon-to-be-retired Bill McCracken.

Clearly something went slightly awry in Q3 and mirroring sluggishness in the big iron space, Mainframe Solutions fell eight per cent to $622m as renewals dipped. CA said it saw a fifty per cent decline in Mainframe new product sales.

Enterprise Solutions sales were flat at $476m and services revenues dropped five per cent to $97m.

But it's always easier for the new man on the block too look over the business and pinpoint areas for improvement.

Gregoire said he joined the from Taleo Corp, a cloud-based talent management software firm, because CA's total addressable market is forecast to reach $75bn, it has a kit bag full of IP and broad distribution.

"We need to accelerate our innovation curve," he told financial analysts on a conference call last night, "we must differentiate in everything we do. If we do not differentiate, we become commoditised and we will not be able to grow".

He added there was "room for improvement" in its cost of sales - operating expenses fell two per cent in Q3 to $825m - and in "our cadence for getting things done".

The company has a competency is selling complex enterprise contracts, said Gregoire, "but we do not move the needle quickly enough in some of the new product offerings".

And he reckons CA should use its solid balance sheet "prudently" to make "smart investments" and not simply buy a business for revenues sake in the hope to run it more efficiently. ®

Intelligent flash storage arrays

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Seattle children’s accelerates Citrix login times by 500% with cross-tier insight
Seattle Children’s is a leading research hospital with a large and growing Citrix XenDesktop deployment. See how they used ExtraHop to accelerate launch times.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
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?
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.