CA Technologies chief executive officer Mike Gregoire, said, “CA Technologies delivered another solid performance in the third quarter. We outperformed on revenue and are pleased with our renewals business and disciplined approach to cost control. We also saw good traction with our recent acquisitions Layer 7 and Nolio, which both had strong performances.
“While I’m encouraged by our performance in Q3, we need to continue to improve our execution across development, marketing and sales,” Gregoire continued. “Based on our results so far this year, we expect our fiscal year 2015 revenue growth rate and non-GAAP operating margin to be similar to fiscal year 2014.
“We are driving significant improvements in our products and go-to-market, including the release of organic innovation such as CA Cloud Storage for System z and the launch of a new ad campaign in select airports around the world as well as online.
“With two months to go in the fiscal year, we are more focused than ever on delivering great products, increasing market awareness of CA and our capabilities, and accelerating the velocity of our efforts to sell more software to more customers,” Gregoire concluded.
• The increase in the Company’s third quarter bookings was positively affected by a year-over-year increase in renewals, primarily driven by a four year contract renewal with a large system integrator for more than $300 million.
• The Company executed a total of 17 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $874 million. During the third quarter of fiscal year 2013, the Company executed a total of 18 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $477 million.
• The weighted average duration of subscription and maintenance bookings for the quarter was 3.68 years, compared with 2.97 years for the same period in fiscal year 2013.
• GAAP and non-GAAP operating expenses were positively affected by lower personnel costs, primarily within selling and marketing.
• GAAP and non-GAAP operating margins in the third quarter were positively affected by a decrease in personnel expenses. GAAP operating margin also was negatively affected by a decrease in software capitalization.
• Non-GAAP EPS was positively affected by $0.16 due to a lower effective tax rate. The Company recognized a year-to-date net discrete tax benefit of approximately $184 million in fiscal year 2014, primarily from the resolution of uncertain tax positions upon the completion of the examination of U.S. federal income tax returns for fiscal years 2005, 2006 and 2007.
Cash flow from operations in the third quarter was $429 million, compared with $566 million in the prior year. The decrease year-over-year was due to a decrease in cash collections and a number of expected factors including higher cash taxes, payments related to the rebalancing actions announced on May 7, 2013 and a reduction in capitalized software development costs, offset by lower cash disbursements.