CA Technologies has reported its third quarter fiscal results 2015, ending December 31, 2014. The results show several areas of decline which the company attributes to decreases in subscription and maintenance revenue.
Third quarter revenue was down to $1.091bn, a drop from $1.128bn last year, while third quarter non GAAP EPS also fell to $0.67 from $0.81 reported in the same period last year. Cash flow from continuing operations fell to $313 million from $419 million last year.
Mike Gregoire, CA Technologies Chief Executive Officer, said: "Overall third quarter results provide further evidence that the strategy we put in place and our focus on rigorous execution continue to pay off. Although we saw a decline in third quarter sales, we are on track for the full year."
"At CA World this past November, we showcased our unique strength in serving customers in the Application Economy. The event highlighted the full breadth and leadership of our solutions, as well as our vision of the future, to thousands of customers and partners, many of whom experienced CA’s expanded portfolio for the first time."
"Looking ahead, while we do not expect fiscal 2016 total revenue to grow in constant currency, we believe we are on track to achieving our medium-term goals."
CA Technologies has reported that the decline in total revenue comes as a result of a decrease in subscription and maintenance revenue and an ‘unfavourable’ exchange effect of $28 million during the third quarter of fiscal 2015.
A contributory factor according to CA Technologies was due to the negative effect of year-over-year decrease in renewals due to the timing of the renewal portfolio within subscription and maintenance bookings.
CA Technologies executed a total of 18 license agreements with incremental contract values in excess of $10 million each, this results in an aggregate contract value of $394 million. This is in contrast to the third quarter of fiscal 2014, when they executed 17 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $874 million.
