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 CA Technologies Reports Fourth Quarter and Full Fiscal Year 2016 Results
   Wednesday, May 11, 2016 4:05:03 PM ET

--4Q and FY2016 Revenue of $1.009 Billion and $4.025 Billion, Respectively

--4Q and FY2016 GAAP EPS of $0.41 and $1.78, Respectively

--4Q and FY2016 Non-GAAP EPS of $0.60 and $2.43, Respectively

--4Q and FY2016 Cash Flow From Continuing Operations of $471 Million and $1,034 Million, Respectively

CA Technologies (CA ) today reported financial results for its fourth quarter and full fiscal year 2016, which ended March 31, 2016.

Mike Gregoire, CA Technologies Chief Executive Officer, said:

"I am pleased to report that we achieved our guidance for full-year revenue, operating margin and EPS results, and exceeded guidance for full-year cash flow from continuing operations.



"Our efforts to reposition the product portfolio, refine our go-to-market strategy, and sharpen our focus on customer success have culminated in new sales growth for the year. This was a notable improvement relative to prior years. At the same time, there is still work to do to drive the level of sustained growth that our company is capable of delivering.

"Looking forward, we will continue to manage the business with thoughtful discipline, and remain committed to our strategic imperative of delivering long term growth and profitability."

FINANCIAL OVERVIEW
 
(dollars in millions, except share data)                                                              Fourth Quarter FY16 vs. FY15                                                                                                            Full Year FY16 vs. FY15
                                                                      -----------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------
                                                         FY16                   FY15                     %                      %                       FY16                   FY15                     %                      %
                                                                                                                                            Change                                    Change                                                                                                        Change                                    Change
                                                                                                                                                                                       CC**                                                                                                                                                    CC**
                                                 -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Revenue                                                                      $1,009                 $1,023                  (1)%            1%                              $4,025                 $4,262                  (6)%           (1)%
------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----
GAAP Income from Continuing Operations                                        $171                   $145                    18%            30%                              $769                   $810                   (5)%            10%
------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----
Non-GAAP Income from Continuing Operations*                                   $252                   $247                    2%             15%                             $1,050                 $1,125                  (7)%            3%
------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----
GAAP Diluted EPS from Continuing Operations                                   $0.41                  $0.33                   24%            36%                              $1.78                  $1.82                  (2)%            13%
------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----
Non-GAAP Diluted EPS from Continuing Operations*                              $0.60                  $0.56                   7%             21%                              $2.43                  $2.53                  (4)%            6%
------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----
Cash Flow from Continuing Operations                       $471                   $485                   (3)%            0%           $1,034                 $1,030                   0%             9%
------------------------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----
* Non-GAAP income and non-GAAP earnings per share are non-GAAP
financial measures, as noted in the discussion of non-GAAP results
below. A reconciliation of non-GAAP financial measures to their
comparable GAAP financial measures is included in the tables
following this news release.
**CC: Constant Currency
 

REVENUE AND BOOKINGS

Fourth Quarter
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions)                                                                                                          Fourth Quarter FY16 vs. FY15
                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                FY16                   % of                   FY15                   % of                     %                      %
                                                                          Total                                                                               Total                                    Change                                    Change
                                                                                                                                                                                                                                                  CC**
                        -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
North America Revenue                                $681                    67%                   $682                    67%                    0%                     0%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
International Revenue                                $328                    33%                   $341                    33%                   (4)%                    3%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Revenue                                       $1,009                     $1,023                      (1)%                    1%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                               
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
North America Bookings                               $636                    66%                   $727                    68%                   (13)%                  (12)%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
International Bookings                               $324                    34%                   $342                    32%                   (5)%                   (4)%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Bookings                                       $960                      $1,069                      (10)%                  (10)%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                               
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Current Revenue Backlog                             $3,113                     $3,141                      (1)%                   (1)%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Revenue Backlog            $6,829                     $6,530                       5%                     4%
----------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
**CC: Constant Currency
 

-- Total revenue declined as a result of an unfavorable foreign exchange effect of $28 million. Our fiscal 2016 acquisitions of Rally Software Development Corp. and Xceedium, Inc. ("our fiscal 2016 acquisitions") contributed approximately 3 points of revenue growth for the quarter.

-- Total bookings declined primarily due to lower renewals and, to a lesser extent, lower new product sales.

-- The Company executed a total of 13 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $271 million. During the fourth quarter of fiscal 2015, the Company executed a total of 19 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $507 million.

-- The weighted average duration of subscription and maintenance bookings for the quarter was 2.66 years, compared with 3.05 years for the same period in fiscal 2015.

Full Year
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions)                                                                                                            Full Year FY16 vs. FY15
                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                               FY16                   % of                   FY15                   % of                     %                      %
                                                                         Total                                                                               Total                                    Change                                    Change
                                                                                                                                                                                                                                                 CC**
                       -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
North America Revenue                              $2,712                   67%                  $2,766                   65%                   (2)%                   (1)%
----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
International Revenue                              $1,313                   33%                  $1,496                   35%                   (12)%                   1%
----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Revenue                                      $4,025                     $4,262                      (6)%                   (1)%
----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                              
----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
North America Bookings                             $2,987                   70%                  $2,353                   65%                    27%                    28%
----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
International Bookings                             $1,260                   30%                  $1,256                   35%                    0%                     11%
----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Bookings                  $4,247                     $3,609                       18%                    22%
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
**CC: Constant Currency
 

-- Total revenue declined primarily as a result of an unfavorable foreign exchange effect of $212 million. Our fiscal 2016 acquisitions contributed approximately 2 points of revenue growth for the year.

-- Total bookings grew primarily due to higher renewals, which included a renewal with a large system integrator in excess of $500 million in fiscal 2016 and, to a lesser extent, bookings related to our fiscal 2016 acquisitions.

-- The Company executed a total of 48 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $1.965 billion. During fiscal 2015, the Company executed a total of 51 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $1.448 billion.

-- The weighted average duration of subscription and maintenance bookings for fiscal 2016 was 3.71 years, compared with 3.24 years for fiscal 2015.

EXPENSES, MARGIN AND EARNINGS PER SHARE

Fourth Quarter
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions)                                                                                            Fourth Quarter FY16 vs. FY15
                                                                         ---------------------------------------------------------------------------------------------------------------------------------------------------
                                                            FY16                   FY15                     %                      %
                                                                                                                                               Change                                    Change
                                                                                                                                                                                          CC**
                                                    -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
GAAP                                                                      
---------------------------------------------------                      ---------------------------------------------------------------------------------------------------------------------------------------------------
Operating Expenses Before Interest and Income Taxes                              $730                   $812                   (10)%                  (10)%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating Income Before Interest and Income Taxes                                $279                   $211                    32%                    45%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
GAAP Diluted EPS from Continuing Operations                                      $0.41                  $0.33                   24%                    36%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating Margin                                                                  28%                    21%                
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Effective Tax Rate                                            35.2%                  28.2%               
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Non-GAAP*                                                                 
---------------------------------------------------                      ---------------------------------------------------------------------------------------------------------------------------------------------------
Operating Expenses Before Interest and Income Taxes                              $630                   $693                   (9)%                   (11)%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating Income Before Interest and Income Taxes                                $379                   $330                    15%                    29%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Non-GAAP Diluted EPS from Continuing Operations                                  $0.60                  $0.56                   7%                     21%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating Margin                                                                  38%                    32%                
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Effective Tax Rate                                            30.8%                  23.1%               
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
*A reconciliation of non-GAAP financial measures to their comparable
GAAP financial measures is included in the tables following this
news release. Year-over-year non-GAAP results exclude purchased
software and other intangibles amortization, share-based
compensation, amortization of internal software costs, Board
approved workforce rebalancing initiatives and certain other gains
and losses. The results also include gains and losses on hedges that
mature within the quarter, but exclude gains and losses on hedges
that do not mature within the quarter.
**CC: Constant Currency
 

-- GAAP and non-GAAP operating expenses decreased primarily as a result of a decline in non-acquisition personnel-related costs, partially offset by costs from our fiscal 2016 acquisitions.

-- In the fourth quarter of fiscal 2015, GAAP and non-GAAP operating expenses were affected by $40 million from severance costs.

-- GAAP EPS was positively impacted by $0.17 from an improvement in GAAP operating margin, which was partially offset by $0.04 impact from unfavorable foreign exchange and $0.04 impact from an increase in GAAP effective tax rate.

-- Non-GAAP EPS was positively impacted by $0.17 from an improvement in non-GAAP operating margin, which was partially offset by $0.07 impact from unfavorable foreign exchange and $0.06 impact from an increase in non-GAAP effective tax rate.

Full Year
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions)                                                                                               Full Year FY16 vs. FY15
                                                                         ---------------------------------------------------------------------------------------------------------------------------------------------------
                                                            FY16                   FY15                     %                      %
                                                                                                                                               Change                                    Change
                                                                                                                                                                                          CC**
                                                    -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
GAAP                                                                      
---------------------------------------------------                      ---------------------------------------------------------------------------------------------------------------------------------------------------
Operating Expenses Before Interest and Income Taxes                             $2,890                 $3,100                  (7)%                   (5)%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating Income Before Interest and Income Taxes                               $1,135                 $1,162                  (2)%                    11%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
GAAP Diluted EPS from Continuing Operations                                      $1.78                  $1.82                  (2)%                    13%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating Margin                                                                  28%                    27%                
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Effective Tax Rate                                            29.1%                  27.4%               
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Non-GAAP*                                                                 
---------------------------------------------------                      ---------------------------------------------------------------------------------------------------------------------------------------------------
Operating Expenses Before Interest and Income Taxes                             $2,494                 $2,665                  (6)%                   (4)%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating Income Before Interest and Income Taxes                               $1,531                 $1,597                  (4)%                    5%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Non-GAAP Diluted EPS from Continuing Operations                                  $2.43                  $2.53                  (4)%                    6%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating Margin                                                                  38%                    37%                
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Effective Tax Rate                                            29.1%                  27.4%               
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
*A reconciliation of non-GAAP financial measures to their comparable
GAAP financial measures is included in the tables following this
news release. Year-over-year non-GAAP results exclude purchased
software and other intangibles amortization, share-based
compensation, amortization of internal software costs, Board
approved workforce rebalancing initiatives and certain other gains
and losses.
**CC: Constant Currency
 

-- GAAP and non-GAAP operating expenses decreased primarily as a result of a decrease in non-acquisition personnel-related costs and a favorable foreign exchange effect, partially offset by costs from our fiscal 2016 acquisitions.

-- GAAP EPS was negatively impacted by $0.24 impact from unfavorable foreign exchange, $0.08 impact from our fiscal 2016 acquisitions and $0.04 impact from an increase in GAAP effective tax rate. These items were partially offset by a $0.27 improvement in GAAP operating margin and $0.05 increase from an overall share count reduction.

-- Non-GAAP EPS was negatively impacted by $0.24 impact from unfavorable foreign exchange, $0.08 impact from our fiscal 2016 acquisitions and $0.06 impact from an increase in non-GAAP effective tax rate. These items were partially offset by a $0.21 improvement in non-GAAP operating margin and $0.07 increase from an overall share count reduction.

-- The increase in both GAAP and non-GAAP effective tax rates was primarily due to the favorable resolutions of uncertain tax positions in fiscal 2015 relating to the completion of the examination of our U.S. federal income tax returns for the tax years ended March 31, 2011 and 2012.

SELECTED HIGHLIGHTS

Leadership and recognition during the quarter include:

-- CA Technologies was recognized as a 2016 World’s Most Ethical Company(R) by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices.

-- For the fourth year in a row, CA Technologies was once again named as a recipient of the NorthFace ScoreBoard Award(SM) from Omega Management Group Corp in recognition of achieving excellence in customer service and support for 2015.

-- CA Technologies was again named a leader by KuppingerCole in its Leadership Compass: Access Management and Federation. (1)

-- CA Technologies was named a leader by the IDC Marketscape: Worldwide Enterprise IT PPM 2016 Vendor Assessment. (2)

Customer traction for CA Technologies innovation during the quarter include:

-- A global health insurance and benefits provider chose CA Agile Central as their enterprise standard for agile management, displacing deployments from two other vendors.

-- A leader in the global money-transfer space standardized on CA Release Automation to accelerate and improve the quality of their development processes.

-- A global consumer products company selected CA Privileged Access Management after a competitive proof-of concept evaluation for its ease of deployment and demonstrated value.

-- A multinational pharmaceutical company chose CA Project and Portfolio Management SaaS for its IT operations and M&A activities.

-- A leading SaaS company chose to expand its footprint with CA API Management after observing the value of the product at one of its acquired companies.

SEGMENT INFORMATION

Fourth Quarter
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions)                                                                                        Fourth Quarter FY16 vs. FY15
                                           -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                  Revenue                                        %                      %                            Operating Margin
                                                                                                                 Change                                    Change
                                                                                                                                                            CC**
                      ------------------------------------------------------------                        --------------------                      --------------------                      ---------------------------------------------
                              FY16                   FY15                       FY16                   FY15
                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Mainframe Solutions                                $547                   $572                   (4)%                   (2)%             61%    56%
---------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- ---
Enterprise Solutions                               $380                   $368                    3%                     6%              10%    4%
---------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- ---
Services                         $82                    $83                   (1)%                    0%              7%     -4%
--------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- ---
**CC: Constant Currency
 

-- Mainframe Solutions revenue declined primarily due to an unfavorable foreign exchange effect and insufficient revenue from prior period new sales to offset the decline in revenue contribution from renewals. Operating margin increased compared with the year-ago period primarily due to the decline in personnel-related costs.

-- Enterprise Solutions revenue increased as a result of additional revenue associated with our fiscal 2016 acquisitions, which contributed approximately 7 points of revenue growth for the quarter. Operating margin increased primarily due to lower non-acquisition related costs partially offset by additional costs from our fiscal 2016 acquisitions.

-- Services revenue decreased due to an unfavorable foreign exchange effect. Operating margin improved primarily due to a decrease in personnel-related costs as a result of our prior period severance actions.

Full Year
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions)                                                                                           Full Year FY16 vs. FY15
                                           -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                  Revenue                                        %                      %                            Operating Margin
                                                                                                                 Change                                    Change
                                                                                                                                                            CC**
                      ------------------------------------------------------------   -------------------- --------------------                      -------------------- -------------------- ---------------------------------------------
                              FY16                   FY15                       FY16                   FY15
                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Mainframe Solutions                               $2,215                 $2,392                  (7)%                   (2)%             61%    59%
---------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- ---
Enterprise Solutions                              $1,484                 $1,519                  (2)%                    2%              10%    11%
---------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- ---
Services                        $326                   $351                   (7)%                   (3)%             7%     3%
--------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----- -------------------- ---
**CC: Constant Currency
 

-- Mainframe Solutions revenue declined primarily due to an unfavorable foreign exchange effect and, to a lesser extent, insufficient revenue from new sales to offset the decline in revenue contribution from renewals. Mainframe Solutions operating margin increased primarily due to a decrease in personnel-related costs.

-- Enterprise Solutions revenue declined due to an unfavorable foreign exchange effect. Excluding the unfavorable effect of foreign exchange, Enterprise Solutions revenue increased as a result of additional revenue associated with our fiscal 2016 acquisitions, which contributed approximately 5 points of revenue growth for the year. Enterprise Solutions operating margin decreased primarily due to costs from our fiscal 2016 acquisitions, partially offset by a decrease in non-acquisition personnel-related costs.

-- Services revenue decreased primarily due to an unfavorable foreign exchange effect and, to a lesser extent, a decline in professional services engagements in the first half of fiscal 2016 and during fiscal 2015, partially offset by an increase in services revenue from our Rally acquisition. Operating margin for Services increased primarily due to a decrease in personnel-related costs as a result of our prior period severance actions and a decrease in external consulting costs.

CASH FLOW FROM OPERATIONS

-- Cash flow from continuing operations for the fourth quarter was $471 million, compared with $485 million in the prior year. Cash flow from operations decreased primarily due to an unfavorable effect of foreign exchange.

-- For the full year, cash flow from continuing operations was $1.034 billion, compared with $1.030 billion in the prior fiscal year. Cash flow from operations increased slightly due to lower disbursements, lower payments associated with our Fiscal Year 2014 Rebalancing Plan and lower income tax payments, net, offset by a decrease in cash collections from billings, which included lower single installment payments. There was an overall unfavorable effect from foreign exchange of $82 million on net cash provided by continuing operating activities.

CAPITAL STRUCTURE

-- Cash, cash equivalents and investments at March 31, 2016 were $2.812 billion.

-- With $1.953 billion in total debt outstanding and $139 million in notional pooling, the Company’s net cash, cash equivalents and investments position was $720 million.

-- For fiscal 2016, the Company repurchased 26 million shares of stock for $707 million.

-- As of March 31, 2016, the Company is currently authorized to purchase $750 million of its common stock under its current stock repurchase program that was authorized in November 2015.

-- During the fourth quarter of fiscal 2016, the Company distributed $104 million in dividends to shareholders. For fiscal 2016, the Company distributed $429 million in dividends to shareholders.

-- The Company’s outstanding share count at March 31, 2016 was 413 million.

OUTLOOK FOR FISCAL 2017

The following outlook for fiscal 2017 contains "forward-looking statements" (as defined below).

The Company expects the following:

-- Total revenue to increase in a range of flat to plus 1 percent in constant currency. At March 31, 2016 exchange rates, this translates to reported revenue of $4.04 billion to $4.08 billion.

-- GAAP diluted earnings per share from continuing operations to increase in a range of 3 percent to 6 percent in constant currency. At March 31, 2016 exchange rates, this translates to reported GAAP diluted earnings per share from continuing operations of $1.92 to $1.97.

-- Non-GAAP diluted earnings per share from continuing operations to increase in a range of 1 percent to 3 percent in constant currency. At March 31, 2016 exchange rates, this translates to reported non-GAAP diluted earnings per share from continuing operations of $2.51 to $2.56.

-- Cash flow from continuing operations to increase in a range of 1 percent to 5 percent in constant currency. At March 31, 2016 exchange rates, this translates to reported cash flow from continuing operations of $1.06 billion to $1.10 billion.

This outlook assumes no material acquisitions. The Company expects a full-year GAAP operating margin of 30 percent and non-GAAP operating margin of 38 percent. The Company also expects a full-year GAAP and non-GAAP effective tax rate of between 28 percent and 29 percent.

The Company anticipates approximately 410 million shares outstanding at fiscal 2017 year-end and weighted average diluted shares outstanding of approximately 414 million for the fiscal year.

Webcast

This news release and the accompanying tables should be read in conjunction with additional content that is available on the Company’s website, including a supplemental financial package, as well as a conference call and webcast that the Company will host at 5:00 p.m. ET today to discuss its unaudited fourth quarter and full fiscal year results. The webcast will be archived on the website. Individuals can access the webcast, as well as the press release and supplemental financial information at http://ca.com/invest or can listen to the call at 1-877-561-2748. The international participant number is 1-720-545-0044.

(1) KuppingerCole Leadership Compass: Access Management and Federation, March 2016

(2) 2016 IDC MarketScape: Worldwide Enterprise IT PPM 2016 Vendor Assessment - Enabling Business Execution and Optimization, February 2016, IDC #US40473615

About CA Technologies

CA Technologies (CA ) creates software that fuels transformation for companies and enables them to seize the opportunities of the application economy. Software is at the heart of every business in every industry. From planning, to development, to management and security, CA is working with companies worldwide to change the way we live, transact, and communicate - across mobile, private and public cloud, distributed and mainframe environments. Learn more at www.ca.com.

Follow CA Technologies

-- Twitter

-- Social Media Page

-- Press Releases

-- Blogs

Non-GAAP Financial Measures

This news release, the accompanying tables and the additional content that is available on the Company’s website, including a supplemental financial package, include certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP). Non-GAAP metrics for operating expenses, operating income, operating margin, income from continuing operations and diluted earnings per share exclude the following items: share-based compensation expense; non-cash amortization of purchased software and other intangible assets; charges relating to rebalancing initiatives that are large enough to require approval from the Company’s Board of Directors and certain other gains and losses, which include the gains and losses since inception of hedges that mature within the quarter, but exclude gains and losses of hedges that do not mature within the quarter. The Company began expensing costs for internally developed software where development efforts commenced in the first quarter of fiscal 2014. Due to this change, the Company excludes amortization of internally developed software costs previously capitalized from these non-GAAP metrics. The effective tax rate on GAAP and non-GAAP income from operations is the Company’s provision for income taxes expressed as a percentage of pre-tax GAAP and non-GAAP income from continuing operations, respectively. These tax rates are determined based on an estimated effective full year tax rate, with the effective tax rate for GAAP generally including the impact of discrete items in the period in which such items arise and the effective tax rate for non-GAAP generally allocating the impact of discrete items pro rata to the fiscal year’s remaining reporting periods. Adjusted cash flow from operations excludes payments associated with the fiscal 2014 Board-approved rebalancing initiative as described above, capitalized software development costs as described above, and restructuring and other payments. Free cash flow excludes purchases of property and equipment and capitalized software development costs. The Company presents constant currency information to provide a framework for assessing how the Company’s underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than U.S. dollars are converted into U.S. dollars at the exchange rate in effect on the last day of the Company’s prior fiscal year (i.e., March 31, 2016, March 31, 2015, March 31, 2014 and March 31, 2013, respectively). Constant currency excludes the impacts from the Company’s hedging program. The constant currency calculation for annualized subscription and maintenance bookings is calculated by dividing the subscription and maintenance bookings in constant currency by the weighted average subscription and maintenance duration in years. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, non-GAAP financial measures facilitate management’s internal comparisons to the Company’s historical operating results and cash flows, to competitors’ operating results and cash flows, and to estimates made by securities analysts. Management uses these non-GAAP financial measures internally to evaluate its performance and they are key variables in determining management incentive compensation. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, the Company has historically reported similar non-GAAP financial measures to its investors and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures, which are attached to this news release.

Cautionary Statement Regarding Forward-Looking Statements

The declaration and payment of future dividends is subject to the determination of the Company’s Board of Directors, in its sole discretion, after considering various factors, including the Company’s financial condition, historical and forecast operating results, and available cash flow, as well as any applicable laws and contractual covenants and any other relevant factors. The Company’s practice regarding payment of dividends may be modified at any time and from time to time.

Repurchases under the Company’s stock repurchase program may be made from time to time, subject to market conditions and other factors, in the open market, through solicited or unsolicited privately negotiated transactions or otherwise. The program does not obligate the Company to acquire any particular amount of common stock, and it may be modified or suspended at any time at the Company’s discretion.

Certain statements in this communication (such as statements containing the words "believes," "plans," "anticipates," "expects," "estimates," "targets" and similar expressions relating to the future) constitute "forward-looking statements" that are based upon the beliefs of, and assumptions made by, the Company’s management, as well as information currently available to management. These forward-looking statements reflect the Company’s current views with respect to future events and are subject to certain risks, uncertainties, and assumptions. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the ability to achieve success in the Company’s strategy by, among other things, enabling the Company’s sales force to accelerate growth of new product sales (at levels sufficient to offset any decline in revenue in the Company’s Mainframe Solutions segment), improving the Company’s brand, technology and innovation awareness in the marketplace, ensuring the Company’s offerings for cloud computing, application development and IT operations (DevOps), Software-as-a-Service (SaaS), and mobile device management, as well as other new offerings, address the needs of a rapidly changing market, while not adversely affecting the demand for the Company’s traditional products or its profitability to an extent greater than anticipated, and effectively managing the strategic shift in the Company’s business model to develop more easily installed software, provide additional SaaS offerings and refocus the Company’s professional services and education engagements on those engagements that are connected to new product sales, without affecting the Company’s performance to an extent greater than anticipated; the failure to innovate or adapt to technological changes and introduce new software products and services in a timely manner; competition in product and service offerings and pricing; the ability of the Company’s products to remain compatible with ever-changing operating environments, platforms or third party products; global economic factors or political events beyond the Company’s control and other business and legal risks associated with non-U.S. operations; the failure to expand partner programs and sales of our solutions by our partners; the ability to retain and attract qualified professionals; general economic conditions and credit constraints, or unfavorable economic conditions in a particular region, industry or business sector; the ability to successfully integrate acquired companies and products into the Company’s existing business; risks associated with sales to government customers; breaches of the Company’s data center, network, as well as the Company’s software products, and the IT environments of the Company’s vendors and customers; the ability to adequately manage, evolve and protect the Company’s information systems, infrastructure and processes; the failure to renew large license transactions on a satisfactory basis; fluctuations in foreign exchange rates; discovery of errors or omissions in the Company’s software products or documentation and potential product liability claims; the failure to protect the Company’s intellectual property rights and source code; access to software licensed from third parties; risks associated with the use of software from open source code sources; third-party claims of intellectual property infringement or royalty payments; fluctuations in the number, terms and duration of the Company’s license agreements, as well as the timing of orders from customers and channel partners; events or circumstances that would require the Company to record an impairment charge relating to the Company’s goodwill or capitalized software and other intangible assets balances; potential tax liabilities; changes in market conditions or the Company’s credit ratings; changes in generally accepted accounting principles; the failure to effectively execute the Company’s workforce reductions, workforce rebalancing and facilities consolidations; successful and secure outsourcing of various functions to third parties; and other factors described more fully in the Company’s filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties occur, or should the Company’s assumptions prove incorrect, actual results may vary materially from those described herein as believed, planned, anticipated, expected, estimated, targeted or similarly expressed in a forward-looking manner. The Company assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

Copyright (C) 2016 CA, Inc. All Rights Reserved. All other trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.

                                                                                                                                                                                   Table 1
                                                                                                                                                                               CA Technologies
                                                                                                                                                                    Consolidated Statements of Operations
                                                                                                                                                                                 (unaudited)
                                                                                                                                                                   (in millions, except per share amounts)
 
                                                                                                                                           Three Months Ended                                                                                                       Fiscal Year Ended
                                                                                                                                                                   March 31,                                                                                                                                  March 31,
                                                                                                             --------------------------------------------------------------------------------------------------------------                            ---------------------------------------------------------------------------------------------------------------
                     Revenue:                                                                                                      2016                                              2015                                                                 2016                                              2015
                                                                                                             ---------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        ----------------------------------------------
                     Subscription and maintenance                                                                               $   821                                                              $   851                                                              $ 3,317                                                              $  3,560
                     Professional services                                                                                           82                                                                   83                                                                  326                                                                   351
                     Software fees and other                                                                     106                             89                            382                             351  
                                                                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Total revenue                                                                                              $ 1,009                                           $ 1,023                                           $ 4,025                                           $  4,262  
                                                                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Expenses:
                     Costs of licensing and maintenance                                                                         $    74                                                              $    80                                                              $   283                                                              $    297
                     Cost of professional services                                                                                   76                                                                   85                                                                  300                                                                   338
                     Amortization of capitalized software costs                                                                      64                                                                   69                                                                  256                                                                   273
                     Selling and marketing                                                                                          255                                                                  278                                                                1,006                                                                 1,060
                     General and administrative                                                                                      88                                                                  108                                                                  367                                                                   377
                     Product development and enhancements                                                                           140                                                                  160                                                                  560                                                                   603
                     Depreciation and amortization of other intangible assets                                                        23                                                                   30                                                                  106                                                                   129
                     Other expenses, net                                                                          10                              2                             12                              23  
                                                                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Total expenses before interest and income taxes                                                            $   730                                           $   812                                           $ 2,890                                           $  3,100  
                                                                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Income from continuing operations before interest and income taxes                                         $   279                                                              $   211                                                              $ 1,135                                                              $  1,162
                     Interest expense, net                                                                        15                              9                             51                              47  
                                                                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Income from continuing operations before income taxes                                                      $   264                                                              $   202                                                              $ 1,084                                                              $  1,115
                     Income tax expense                                                                           93                             57                            315                             305  
                                                                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Income from continuing operations                                                                          $   171                                                              $   145                                                              $   769                                                              $    810
                     Income from discontinued operations, net of income taxes                                                   $     3                                           $     6                                           $    14                                           $     36  
                                                                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Net income                                                                                                 $   174                                           $   151                                           $   783                                           $    846  
                                                                                                             ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                             
                     Basic income per common share:
                     Income from continuing operations                                                                          $  0.41                                                              $  0.33                                                              $  1.79                                                              $   1.83
                     Income from discontinued operations                                                        0.01                           0.01                           0.03                            0.08  
                                                                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Net income                                                                                                 $  0.42                                           $  0.34                                           $  1.82                                           $   1.91  
                                                                                                             ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                     Basic weighted average shares used in computation                                                              413                                                                  437                                                                  426                                                                   439
                                                                                                                                                                                                                                                                                                                             
                     Diluted income per common share:
                     Income from continuing operations                                                                          $  0.41                                                              $  0.33                                                              $  1.78                                                              $   1.82
                     Income from discontinued operations                                                        0.01                           0.01                           0.03                            0.08  
                                                                                                             -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Net income                                                                                                 $  0.42                                           $  0.34                                           $  1.81                                           $   1.90  
                                                                                                             ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                     Diluted weighted average shares used in computation                                                            414                                                                  439                                                                  427                                                                   441
                      
                     Results reflect the discontinued operations associated with the CA
                     ERwin Data Modeling and CA arcserve data protection businesses.
                      
                                                                                                                Table 2
                                                                                                            CA Technologies
                                                                                                 Condensed Consolidated Balance Sheets
                                                                                                             (in millions)
 
                                                                                                                 March 31,                                          March 31,
                                                                                                                                      2016                                                                  2015
                                                                                                                -------------------------------------------------                     -------------------------------------------------
                                                                                                                                   (unaudited)
                     Cash and cash equivalents                                                                                     $  2,812                                                              $  2,804
                     Trade accounts receivable, net                                                                                     625                                                                   652
                     Deferred income taxes                                                                                                -                                                                   318
                     Other current assets                                                                            124                             212  
                                                                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
                     Total current assets                                                                                          $  3,561                                                              $  3,986
                                                                                                                                                                                       
                     Property and equipment, net                                                                                   $    242                                                              $    252
                     Goodwill                                                                                                         6,086                                                                 5,806
                     Capitalized software and other intangible assets, net                                                              795                                                                   731
                     Deferred income taxes                                                                                              407                                                                    92
                     Other noncurrent assets, net                                                                    113                             106  
                                                                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
                     Total assets                                                                                                  $ 11,204                                           $ 10,973  
                                                                                                                ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                       
                     Current portion of long-term debt                                                                             $      6                                                              $     10
                     Deferred revenue (billed or collected)                                                                           2,197                                                                 2,114
                     Deferred income taxes                                                                                                -                                                                     7
                     Other current liabilities                                                                       691                             807  
                                                                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
                     Total current liabilities                                                                                     $  2,894                                                              $  2,938
                                                                                                                                                                                       
                     Long-term debt, net of current portion                                                                        $  1,947                                                              $  1,247
                     Deferred income taxes                                                                                                3                                                                    45
                     Deferred revenue (billed or collected)                                                                             737                                                                   863
                     Other noncurrent liabilities                                                                    245                             255  
                                                                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
                     Total liabilities                                                                                             $  5,826                                           $  5,348  
                                                                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                       
                     Common stock                                                                                                  $     59                                                              $     59
                     Additional paid-in capital                                                                                       3,664                                                                 3,631
                     Retained earnings                                                                                                6,575                                                                 6,221
                     Accumulated other comprehensive loss                                                                              (416 )                                                                (418 )
                     Treasury stock                                                                               (4,504 )                                           (3,868 )
                                                                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
                     Total stockholders’ equity                                                         $  5,378                                           $  5,625  
                                                                                                                -------------------- ------ --------------------                      -------------------- ------ --------------------
                     Total liabilities and stockholders’ equity                                         $ 11,204                                           $ 10,973  
                                                                                                                ==================== ====== ====================                      ==================== ====== ====================
                      
                                                                                                                  Table 3
                                                                                                              CA Technologies
                                                                                              Condensed Consolidated Statements of Cash Flows
                                                                                                                (unaudited)
                                                                                                               (in millions)
                                                                                                                               Three Months Ended
                                                                                                                                                                          March 31,
                                                                                                                  ------------------------------------------------------------------------------------------------------------------
                                                                                                                                         2016                                                2015
                                                                                                                  -----------------------------------------------                        -----------------------------------------------
                     Operating activities from continuing operations:
                     Net income                                                                                                      $     174                                                              $     151
                     Income from discontinued operations                                                                 (3 )                                                (6 )
                                                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Income from continuing operations                                                                               $     171                                                              $     145
                     Adjustments to reconcile income from continuing operations to net
                     cash provided by operating activities:
                         Depreciation and amortization                                                                                      87                                                                     99
                         Deferred income taxes                                                                                             (62 )                                                                  (10 )
                         Provision for bad debts                                                                                             -                                                                      2
                         Share-based compensation expense                                                                                   27                                                                     22
                         Other non-cash items                                                                                               (1 )                                                                    4
                         Foreign currency transaction gains                                                                                 (1 )                                                                   (3 )
                     Changes in other operating assets and liabilities, net of effect of
                     acquisitions:
                         Decrease (increase) in trade accounts receivable                                                                    4                                                                    (12 )
                         Increase in deferred revenue                                                                                      248                                                                    307
                         Decrease in taxes payable, net                                                                                    (25 )                                                                 (132 )
                         (Decrease) increase in accounts payable, accrued expenses and other                                               (12 )                                                                   29
                         Increase in accrued salaries, wages and commissions                                                                25                                                                     22
                         Changes in other operating assets and liabilities                                               10                               12  
                                                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Net cash provided by operating activities - continuing operations                                               $     471                                           $     485  
                                                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Investing activities from continuing operations:
                     Acquisitions of businesses, net of cash acquired, and purchased                                                 $       -                                                              $      (6 )
                     software
                     Purchases of property and equipment                                                                                   (14 )                                                                   (7 )
                     Decrease in restricted cash                                                                                             4                                                                      -
                     Other investing activities                                                                          (1 )                                                 -  
                                                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Net cash used in investing activities - continuing operations                                                   $     (11 )                                                            $     (13 )
                                                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Financing activities from continuing operations:
                     Dividends paid                                                                                                  $    (104 )                                                            $    (111 )
                     Purchases of common stock                                                                                              (2 )                                                                  (90 )
                     Notional pooling borrowings, net                                                                                       15                                                                     83
                     Debt repayments                                                                                                        (1 )                                                                   (1 )
                     Exercise of common stock options                                                                                        3                                                                      1
                     Other financing activities                                                                          (1 )                                                 -  
                                                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Net cash used in financing activities - continuing operations                                                   $     (90 )                                                            $    (118 )
                     Effect of exchange rate changes on cash                                                                         $      62                                           $    (222 )
                                                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Net change in cash and cash equivalents - continuing operations                                                 $     432                                                              $     132
                     Cash used in operating activities - discontinued operations                                                     $     (23 )                                                            $     (11 )
                     Cash provided by investing activities - discontinued operations                                     50                                -  
                                                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Net effect of discontinued operations on cash and cash equivalents                                              $      27                                           $     (11 )
                                                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Increase in cash and cash equivalents                                                                           $     459                                                              $     121
                     Cash and cash equivalents at beginning of period                                                                $   2,353                                           $   2,683  
                                                                                                                  -------------------- ------- --------------------                      -------------------- ------- --------------------
                     Cash and cash equivalents at end of period                                                                      $   2,812                                           $   2,804  
                                                                                                                  ==================== ======= ====================                      ==================== ======= ====================
                      
                     Results reflect the discontinued operations associated with the CA
                     ERwin Data Modeling business.
                      
                                                                                                                                                                                                                                     Table 4
                                                                                                                                                                                                                                     CA Technologies
                                                                                                                                                                                                                                     Operating Segments
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                     (dollars in millions)
 
                                                                                                                                                                                             Three Months Ended March 31, 2016                                                                                                                                                                                                                              Fiscal Year Ended March 31, 2016
                                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     Mainframe                                       Enterprise                                                                                                                                                               Mainframe                                        Enterprise                                                                     
                                                                                                                   Solutions (1)                                                       Solutions (1)                                                       Services (1)                                                             Total                                                            Solutions (1)                                                        Solutions (1)                                                       Services (1)                                                             Total
                                                                                                  --------------------------------------------                        --------------------------------------------                        --------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        --------------------------------------------                        ----------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                     Revenue (2)                                                                                     $  547                                                              $  380                                                              $   82                                                              $ 1,009                                                              $ 2,215                                                              $ 1,484                                                              $  326                                                              $  4,025
                     Expenses (3)                                                                    213                           341                            76                            630                            854                          1,337                           303                           2,494  
                                                                                                  -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ---- --------------------                      -------------------- ------ --------------------
                     Segment profit                                                                                  $  334                                           $   39                                           $    6                                           $   379                                           $ 1,361                                           $   147                                           $   23                                           $  1,531  
                                                                                                  ==================== ==== ====================                      ==================== ==== ====================                      ==================== ==== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ==== ====================                      ==================== ====== ====================
                     Segment operating margin                                                                            61 %                                                                10 %                                                                 7 %                                                                 38 %                                                                 61 %                                                                 10 %                                                                 7 %                                                                  38 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                     Segment profit                                                                                                                                                                                                                                                                                              $   379                                                                                                                                                                                                                                                                            $  1,531
                     Less:
                         Purchased software amortization                                                                                                                                                                                                                                                                              40                                                                                                                                                                                                                                                                                 146
                         Other intangibles amortization                                                                                                                                                                                                                                                                                8                                                                                                                                                                                                                                                                                  44
                         Internally developed software products amortization                                                                                                                                                                                                                                                          24                                                                                                                                                                                                                                                                                 110
                         Share-based compensation expense                                                                                                                                                                                                                                                                             27                                                                                                                                                                                                                                                                                  97
                         Other expenses (gains), net (4)                                                                                                                                                                                                                                                                               1                                                                                                                                                                                                                                                                                  (1 )
                         Interest expense, net                                                                                                                                                                                                                                                                     15                                                                                                                                                                                                                                            51  
                                                                                                                                                                                                                                                                                                              -------------------- ----- --------------------                                                                                                                                                                                                                                    -------------------- ------ --------------------
                     Income from continuing operations before income taxes                                                                                                                                                                                                                                                       $   264                                                                                                                                                                                                                                                         $  1,084  
                                                                                                                                                                                                                                                                                                              ==================== ===== ====================                                                                                                                                                                                                                                    ==================== ====== ====================
                      
                      
                                                                                                                                                                                                                Three Months Ended March 31, 2015                                                                                                                                                                                                                                                 Fiscal Year Ended March 31, 2015
                                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     Mainframe                                                          Enterprise                                                                                                                                                                                                     Mainframe                                                           Enterprise
                                                                                                                   Solutions (1)                                                       Solutions (1)                                                       Services (1)                                                             Total                                                            Solutions (1)                                                        Solutions (1)                                                       Services (1)                                                             Total
                                                                                                  --------------------------------------------                        --------------------------------------------                        --------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        ---------------------------------------------                        --------------------------------------------                        ----------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                     Revenue (2)                                                                                     $  572                                                              $  368                                                              $   83                                                              $ 1,023                                                              $ 2,392                                                              $ 1,519                                                              $  351                                                              $  4,262
                     Expenses (3)                                                                    253                           354                            86                            693                            970                          1,353                           342                           2,665  
                                                                                                  -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      -------------------- ---- --------------------                      -------------------- ------ --------------------
                     Segment profit                                                                                  $  319                                           $   14                                           $   (3 )                                                            $   330                                           $ 1,422                                           $   166                                           $    9                                           $  1,597  
                                                                                                  ==================== ==== ====================                      ==================== ==== ====================                      ==================== ==== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ===== ====================                      ==================== ==== ====================                      ==================== ====== ====================
                     Segment operating margin                                                                            56 %                                                                 4 %                                                                -4 %                                                                 32 %                                                                 59 %                                                                 11 %                                                                 3 %                                                                  37 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
                     Segment profit                                                                                                                                                                                                                                                                                              $   330                                                                                                                                                                                                                                                                            $  1,597
                     Less:
                         Purchased software amortization                                                                                                                                                                                                                                                                              37                                                                                                                                                                                                                                                                                 124
                         Other intangibles amortization                                                                                                                                                                                                                                                                               13                                                                                                                                                                                                                                                                                  58
                         Internally developed software products amortization                                                                                                                                                                                                                                                          32                                                                                                                                                                                                                                                                                 149
                         Share-based compensation expense                                                                                                                                                                                                                                                                             22                                                                                                                                                                                                                                                                                  87
                         Other expenses, net (4)                                                                                                                                                                                                                                                                                      15                                                                                                                                                                                                                                                                                  17
                         Interest expense, net                                                                                                                                                                                                                                                                      9                                                                                                                                                                                                                                            47  
                                                                                                                                                                                                                                                                                                              -------------------- ----- --------------------                                                                                                                                                                                                                                    -------------------- ------ --------------------
                     Income from continuing operations before income taxes                                                                                                                                                                                                                                                       $   202                                                                                                                                                                                                                                                         $  1,115  
                                                                                                                                                                                                                                                                                                              ==================== ===== ====================                                                                                                                                                                                                                                    ==================== ====== ====================
(1)   The Company’s Mainframe Solutions and Enterprise Solutions segments
                         comprise its software business organized by the nature of the
                         Company’s software offerings and the platform on which the products
                         operate. The Services segment comprises product implementation,
                         consulting, customer education and customer training, including
                         those directly related to the Mainframe Solutions and Enterprise
                         Solutions software that the Company sells to its customers.
                          
(2)                      The Company regularly enters into a single arrangement with a
                         customer that includes mainframe solutions, enterprise solutions and
                         services. The amount of contract revenue assigned to operating
                         segments is generally based on the manner in which the proposal is
                         made to the customer. The software product revenue is assigned to
                         the Mainframe Solutions and Enterprise Solutions segments based on
                         either: (1) a list price allocation method (which allocates a
                         discount in the total contract price to the individual products in
                         proportion to the list price of the product); (2) allocations
                         included within internal contract approval documents; or (3) the
                         value for individual software products as stated in the customer
                         contract. The price for the implementation, consulting, education
                         and training services is separately stated in the contract and these
                         amounts of contract revenue are assigned to the Services segment.
                         The contract value assigned to each operating segment is then
                         recognized in a manner consistent with the revenue recognition
                         policies the Company applies to the customer contract for purposes
                         of preparing the Consolidated Financial Statements.
                          
(3)                      Segment expenses include costs that are controllable by segment
                         managers (i.e., direct costs) and, in the case of the Mainframe
                         Solutions and Enterprise Solutions segments, an allocation of shared
                         and indirect costs (i.e., allocated costs). Segment-specific direct
                         costs include a portion of selling and marketing costs, licensing
                         and maintenance costs, product development costs and general and
                         administrative costs. Allocated segment costs primarily include
                         indirect and non-segment specific direct selling and marketing costs
                         and general and administrative costs that are not directly
                         attributable to a specific segment. The basis for allocating shared
                         and indirect costs between the Mainframe Solutions and Enterprise
                         Solutions segments is dependent on the nature of the cost being
                         allocated and is either in proportion to segment revenues or in
                         proportion to the related direct cost category. Expenses for the
                         Services segment consist of cost of professional services and other
                         direct costs included within selling and marketing and general and
                         administrative expenses. There are no allocated or indirect costs
                         for the Services segment.
                          
(4)                      Other expenses (gains), net consists of costs associated with the
                         FY2014 Board approved rebalancing initiative (the Fiscal 2014 Plan),
                         certain foreign exchange derivative hedging gains and losses, and
                         other miscellaneous costs.
                          
                         Results reflect the discontinued operations associated with the CA
                         ERwin Data Modeling and CA arcserve data protection businesses.
                          
                                                                                                                                                                                                                                     Table 5
                                                                                                                                                                                                                                     CA Technologies
                                                                                                                                                                                                                                     Constant Currency Summary
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                     (dollars in millions)
 
                                                                                                                                   Three Months Ended March 31,                                                                                                                                                                    Fiscal Year Ended March 31,
                                                                                           -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                               % Increase                                                                                                                                              % Increase
                                                                                                                                                                                                                                      % Increase                        (Decrease)                                                                                                                                                                  % Increase                           (Decrease)
                                                                                                                                                                                                                                      (Decrease)                        in Constant                                                                                                                                                                 (Decrease)                           in Constant
                                                                                                                 2016                                                                 2015                                              in $ US                        Currency (1)                                            2016                                                                 2015                                              in $ US                           Currency (1)
                                                                                           ---------------------------------------------                        ---------------------------------------------                        ----------                       ------------                       ---------------------------------------------                        ---------------------------------------------                        ----------                       -------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                     Bookings                                                                                 $   960                                                              $ 1,069                                             (10 )%                            (10 )%                                             $ 4,247                                                              $ 3,609                                              18 %                                  22 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                     Revenue:
                     North America                                                                            $   681                                                              $   682                                               0 %                               0 %                                              $ 2,712                                                              $ 2,766                                              (2 )%                                 (1 )%
                     International                                                             328                            341                           (4 )%                              3 %                             1,313                          1,496                          (12 )%                                  1 %
                                                                                           -------------------- ----- --------------------                      -------------------- ----- --------------------                      ----- -----                      ------ ------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      ----- -----                      ---------- ---------
                     Total revenue                                                                            $ 1,009                                                              $ 1,023                                              (1 )%                              1 %                                              $ 4,025                                                              $ 4,262                                              (6 )%                                 (1 )%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                     Revenue:
                     Subscription and maintenance                                                             $   821                                                              $   851                                              (4 )%                             (1 )%                                             $ 3,317                                                              $ 3,560                                              (7 )%                                 (2 )%
                     Professional services                                                                         82                                                                   83                                              (1 )%                              0 %                                                  326                                                                  351                                              (7 )%                                 (3 )%
                     Software fees and other                                                   106                             89                           19 %                              23 %                               382                            351                            9 %                                  13 %
                                                                                           -------------------- ----- --------------------                      -------------------- ----- --------------------                      ----- -----                      ------ ------                      -------------------- ----- --------------------                      -------------------- ----- --------------------                      ----- -----                      ---------- ---------
                     Total revenue                                                                            $ 1,009                                                              $ 1,023                                              (1 )%                              1 %                                              $ 4,025                                                              $ 4,262                                              (6 )%                                 (1 )%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                     Segment Revenue:
                     Mainframe solutions                                                                      $   547                                                              $   572                                              (4 )%                             (2 )%                                             $ 2,215                                                              $ 2,392                                              (7 )%                                 (2 )%
                     Enterprise solutions                                                                     $   380                                                                  368                                               3 %                               6 %                                                1,484                                                                1,519                                              (2 )%                                  2 %
                     Services                                                                                      82                                                                   83                                              (1 )%                              0 %                                                  326                                                                  351                                              (7 )%                                 (3 )%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                     Total expenses before interest and income taxes:
                     Total non-GAAP (2)                                                                       $   630                                                              $   693                                              (9 )%                            (11 )%                                             $ 2,494                                                              $ 2,665                                              (6 )%                                 (4 )%
                     Total GAAP                                                                                   730                                                                  812                                             (10 )%                            (10 )%                                               2,890                                                                3,100                                              (7 )%                                 (5 )%
(1)   Constant currency information is presented to provide a framework
                         for assessing how the Company’s underlying businesses performed
                         excluding the effect of foreign currency rate fluctuations. To
                         present this information, current and comparative prior period
                         results for entities reporting in currencies other than U.S. dollars
                         are converted into U.S. dollars at the exchange rate in effect on
                         March 31, 2015, which was the last day of the prior fiscal year.
                         Constant currency excludes the impacts from the Company’s hedging
                         program.
                          
(2)                      Refer to Table 7 for a reconciliation of total expenses before
                         interest and income taxes to total non-GAAP operating expenses.
                          
                         Results reflect the discontinued operations associated with the CA
                         ERwin Data Modeling and CA arcserve data protection businesses.
                          
                         Certain non-material differences may arise versus actual from impact
                         of rounding.
                          
                                                                                                                                                                                 Table 6
                                                                                                                                                                             CA Technologies
                                                                                                                                                       Reconciliation of Select GAAP Measures to Non-GAAP Measures
                                                                                                                                                                               (unaudited)
                                                                                                                                                                          (dollars in millions)
 
                                                                                                                                        Three Months Ended                                                                                                     Fiscal Year Ended
                                                                                                                                                                March 31,                                                                                                                                March 31,
                                                                                                            ----------------------------------------------------------------------------------------------------------                            ---------------------------------------------------------------------------------------------------------------
                                                                                                                                 2016                                            2015                                                                2016                                              2015
                                                                                                            -------------------------------------------                        -------------------------------------------                        ---------------------------------------------                        ----------------------------------------------
                     GAAP net income                                                                                           $ 174                                                              $ 151                                                              $   783                                                              $    846
                     GAAP income from discontinued operations, net of income taxes                             (3 )                                            (6 )                                             (14 )                                              (36 )
                                                                                                            -------------------- --- --------------------                      -------------------- --- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     GAAP income from continuing operations                                                                    $ 171                                                              $ 145                                                              $   769                                                              $    810
                     GAAP income tax expense                                                                                      93                                                                 57                                                                  315                                                                   305
                     Interest expense, net                                                                     15                            9                             51                              47  
                                                                                                            -------------------- --- --------------------                      -------------------- --- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     GAAP income from continuing operations before interest and income                                         $ 279                                           $ 211                                           $ 1,135                                           $  1,162  
                     taxes
                                                                                                            -------------------- --- --------------------                      -------------------- --- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     GAAP operating margin (% of revenue) (1)                                                                     28 %                                                               21 %                                                                 28 %                                                                  27 %
                                                                                                                                                                                                                                                                                                                        
                     Non-GAAP adjustments to expenses:
                         Costs of licensing and maintenance (2)                                                                $   2                                                              $   1                                                              $     7                                                              $      5
                         Cost of professional services (2)                                                                         1                                                                  1                                                                    4                                                                     4
                         Amortization of capitalized software costs (3)                                                           64                                                                 69                                                                  256                                                                   273
                         Selling and marketing (2)                                                                                 9                                                                  7                                                                   34                                                                    30
                         General and administrative (2)                                                                           10                                                                  8                                                                   35                                                                    29
                         Product development and enhancements (2)                                                                  5                                                                  5                                                                   17                                                                    19
                         Depreciation and amortization of other intangible assets (4)                                              8                                                                 13                                                                   44                                                                    58
                         Other expenses (gains), net (5)                                                        1                           15                             (1 )                                               17  
                                                                                                            -------------------- --- --------------------                      -------------------- --- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Total Non-GAAP adjustment to operating expenses                                                           $ 100                                           $ 119                                           $   396                                           $    435  
                                                                                                            -------------------- --- --------------------                      -------------------- --- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Non-GAAP income from continuing operations before interest and                                            $ 379                                                              $ 330                                                              $ 1,531                                                              $  1,597
                     income taxes
                     Non-GAAP operating margin (% of revenue) (6)                                                                 38 %                                                               32 %                                                                 38 %                                                                  37 %
                                                                                                                                                                                                                                                                                                                        
                     Interest expense, net                                                                                        15                                                                  9                                                                   51                                                                    47
                     GAAP income tax expense                                                                                      93                                                                 57                                                                  315                                                                   305
                     Non-GAAP adjustment to income tax expense (7)                                             19                           17                            115                             120  
                                                                                                            -------------------- --- --------------------                      -------------------- --- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Non-GAAP income tax expense                                                                               $ 112                                           $  74                                           $   430                                           $    425  
                                                                                                            -------------------- --- --------------------                      -------------------- --- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Non-GAAP income from continuing operations                                                                $ 252                                           $ 247                                           $ 1,050                                           $  1,125  
                                                                                                            ==================== === ====================                      ==================== === ====================                      ==================== ===== ====================                      ==================== ====== ====================
(1)   GAAP operating margin is calculated by dividing GAAP income from
                         continuing operations before interest and income taxes by total
                         revenue (refer to Table 1 for total revenue).
                          
(2)                      Non-GAAP adjustment consists of share-based compensation.
                          
(3)                      For the three month periods ending March 31, 2016 and 2015, non-GAAP
                         adjustment consists of $40 million and $37 million of purchased
                         software amortization and $24 million and $32 million of internally
                         developed software products amortization, respectively. For the
                         twelve month periods ending March 31, 2016 and 2015, non-GAAP
                         adjustment consists of $146 million and $124 million of purchased
                         software amortization and $110 million and $149 million of
                         internally developed software products amortization, respectively.
                          
(4)                      Non-GAAP adjustment consists of other intangibles amortization.
                          
(5)                      Non-GAAP adjustment consists of charges relating to the FY2014 Board
                         approved rebalancing initiative (the Fiscal 2014 Plan) and certain
                         other gains and losses, including gains and losses since inception
                         of hedges that mature within the quarter, but excludes gains and
                         losses of hedges that do not mature within the quarter.
                          
(6)                      Non-GAAP operating margin is calculated by dividing non-GAAP income
                         from continuing operations before interest and income taxes by total
                         revenue (refer to Table 1 for total revenue).
                          
(7)                      The full year non-GAAP income tax expense is different from GAAP
                         income tax expense because of the difference in non-GAAP income from
                         continuing operations before income taxes. On an interim basis, this
                         difference would also include a difference in the impact of discrete
                         and permanent items where for GAAP purposes the effect is recorded
                         in the period such items arise, but for non-GAAP such items are
                         recorded pro rata to the fiscal year’s remaining reporting periods.
                          
                         Refer to the discussion of non-GAAP financial measures included in
                         the accompanying press release for additional information.
                          
                         Results reflect the discontinued operations associated with the CA
                         ERwin Data Modeling and CA arcserve data protection businesses.
                          
                         Certain non-material differences may arise versus actual from impact
                         of rounding.
                          
                                                                                                                                                                             Table 7
                                                                                                                                                                         CA Technologies
                                                                                                                                                               Reconciliation of GAAP to Non-GAAP
                                                                                                                                                        Operating Expenses and Diluted Earnings per Share
                                                                                                                                                                           (unaudited)
                                                                                                                                                             (in millions, except per share amounts)
 
                                                                                                                               Three Months Ended                                                                                                      Fiscal Year Ended
                                                                                                                                                       March 31,                                                                                                                                 March 31,
                                                                                                  ------------------------------------------------------------------------------------------------------------                            ---------------------------------------------------------------------------------------------------------------
                     Operating Expenses                                                                                2016                                             2015                                                                 2016                                              2015
                     -------------------------------------------------------                      --------------------------------------------                        --------------------------------------------                        ---------------------------------------------                        ----------------------------------------------
                                                                                                                                                                                                                                                                                                                
                     Total expenses before interest and income taxes                                                 $  730                                                              $  812                                                              $ 2,890                                                              $  3,100
                                                                                                                                                                                                                                                                                                                
                     Non-GAAP operating adjustments:
                         Purchased software amortization                                                                 40                                                                  37                                                                  146                                                                   124
                         Other intangibles amortization                                                                   8                                                                  13                                                                   44                                                                    58
                         Internally developed software products amortization                                             24                                                                  32                                                                  110                                                                   149
                         Share-based compensation                                                                        27                                                                  22                                                                   97                                                                    87
                         Other expenses (gains), net (1)                                               1                            15                             (1 )                                               17  
                                                                                                  -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Total non-GAAP operating adjustment                                                             $  100                                           $  119                                           $   396                                           $    435  
                                                                                                  -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                
                     Total non-GAAP operating expenses                                                               $  630                                           $  693                                           $ 2,494                                           $  2,665  
                                                                                                  ==================== ==== ====================                      ==================== ==== ====================                      ==================== ===== ====================                      ==================== ====== ====================
                      
                      
                                                                                                                                                  Three Months Ended                                                                                                                         Fiscal Year Ended
                                                                                                                                                       March 31,                                                                                                                                 March 31,
                                                                                                  ------------------------------------------------------------------------------------------------------------                            ---------------------------------------------------------------------------------------------------------------
                     Diluted EPS from Continuing Operations                                                            2016                                                                2015                                                                 2016                                                                 2015
                     -------------------------------------------------------                      --------------------------------------------                        --------------------------------------------                        ---------------------------------------------                        ----------------------------------------------
                                                                                                                                                                                                                                                                                                                
                     GAAP diluted EPS from continuing operations                                                     $ 0.41                                                              $ 0.33                                                              $  1.78                                                              $   1.82
                                                                                                                                                                                                                                                                                                                
                     Non-GAAP adjustments, net of taxes:
                         Purchased software amortization                                                               0.06                                                                0.06                                                                 0.24                                                                  0.20
                         Other intangibles amortization                                                                0.01                                                                0.02                                                                 0.07                                                                  0.10
                         Internally developed software products amortization                                           0.04                                                                0.05                                                                 0.18                                                                  0.24
                         Share-based compensation                                                                      0.04                                                                0.04                                                                 0.16                                                                  0.14
                         Other expenses, net (1)                                                                          -                                                                0.02                                                                    -                                                                  0.03
                         Non-GAAP effective tax rate adjustments (2)                                0.04                          0.04                              -                               -  
                                                                                                  -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Total non-GAAP adjustment                                                                       $ 0.19                                           $ 0.23                                           $  0.65                                           $   0.71  
                                                                                                  -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                
                     Non-GAAP diluted EPS from continuing operations                                                 $ 0.60                                           $ 0.56                                           $  2.43                                           $   2.53  
                                                                                                  ==================== ==== ====================                      ==================== ==== ====================                      ==================== ===== ====================                      ==================== ====== ====================
(1)   Other expenses (gains), net consists of costs associated with the
                         FY2014 Board approved rebalancing initiative (the Fiscal 2014 Plan),
                         certain foreign exchange derivative hedging gains and losses, and
                         other miscellaneous costs.
                          
(2)                      The non-GAAP effective tax rate is equal to the full year GAAP
                         effective tax rate, therefore no adjustment is required on an annual
                         basis. On an interim basis, the difference in non-GAAP income tax
                         expense and GAAP income tax expense relates to the difference in
                         non-GAAP income from continuing operations before income taxes, and
                         includes a difference in the impact of discrete and permanent items
                         where for GAAP purposes the effect is recorded in the period such
                         items arise but for non-GAAP purposes such items are recorded pro
                         rata to the fiscal year’s remaining reporting periods.
                          
                         Refer to the discussion of non-GAAP financial measures included in
                         the accompanying press release for additional information.
                          
                         Results reflect the discontinued operations associated with the CA
                         ERwin Data Modeling and CA arcserve data protection businesses.
                          
                         Certain non-material differences may arise versus actual from impact
                         of rounding.
                          
                                                                                                                                                                                    Table 8
                                                                                                                                                                                CA Technologies
                                                                                                                                                                       Effective Tax Rate Reconciliation
                                                                                                                                                                               GAAP and Non-GAAP
                                                                                                                                                                                  (unaudited)
                                                                                                                                                                             (dollars in millions)
 
                                                                                                                                              Three Months Ended                                                                                                      Fiscal Year Ended
                                                                                                                                                                   March 31, 2016                                                                                                                            March 31, 2016
                                                                                                                 ------------------------------------------------------------------------------------------------------------                            ---------------------------------------------------------------------------------------------------------------
                                                                                                                                      GAAP                                           Non-GAAP                                                               GAAP                                            Non-GAAP
                                                                                                                 --------------------------------------------                        --------------------------------------------                        ---------------------------------------------                        ----------------------------------------------
                                                                                                                                                                                                                                                                                                                               
                     Income from continuing operations before interest and income taxes (1)                                         $  279                                                              $  379                                                              $ 1,135                                                              $  1,531
                     Interest expense, net                                                                           15                            15                             51                              51  
                                                                                                                 -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Income from continuing operations before income taxes                                                          $  264                                                              $  364                                                              $ 1,084                                                              $  1,480
                                                                                                                                                                                                                                                                                                                               
                     Statutory tax rate                                                                                                 35 %                                                                35 %                                                                 35 %                                                                  35 %
                                                                                                                                                                                                                                                                                                                               
                     Tax at statutory rate                                                                                          $   92                                                              $  127                                                              $   379                                                              $    518
                     Adjustments for discrete and permanent items (2)                                                 1                           (15 )                                             (64 )                                              (88 )
                                                                                                                 -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Total tax expense                                                                                              $   93                                                              $  112                                                              $   315                                                              $    430
                                                                                                                                                                                                                                                                                                                               
                     Effective tax rate (3)                                                                                           35.2 %                                                              30.8 %                                                               29.1 %                                                                29.1 %
                      
                      
                                                                                                                                                                 Three Months Ended                                                                                                                         Fiscal Year Ended
                                                                                                                                                                   March 31, 2015                                                                                                                            March 31, 2015
                                                                                                                 ------------------------------------------------------------------------------------------------------------                            ---------------------------------------------------------------------------------------------------------------
                                                                                                                                      GAAP                                                              Non-GAAP                                                               GAAP                                                               Non-GAAP
                                                                                                                 --------------------------------------------                        --------------------------------------------                        ---------------------------------------------                        ----------------------------------------------
                                                                                                                                                                                                                                                                                                                               
                     Income from continuing operations before interest and income taxes (1)                                         $  211                                                              $  330                                                              $ 1,162                                                              $  1,597
                     Interest expense, net                                                                            9                             9                             47                              47  
                                                                                                                 -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Income from continuing operations before income taxes                                                          $  202                                                              $  321                                                              $ 1,115                                                              $  1,550
                                                                                                                                                                                                                                                                                                                               
                     Statutory tax rate                                                                                                 35 %                                                                35 %                                                                 35 %                                                                  35 %
                                                                                                                                                                                                                                                                                                                               
                     Tax at statutory rate                                                                                          $   71                                                              $  112                                                              $   390                                                              $    543
                     Adjustments for discrete and permanent items (2)                                               (14 )                                            (38 )                                             (85 )                                             (118 )
                                                                                                                 -------------------- ---- --------------------                      -------------------- ---- --------------------                      -------------------- ----- --------------------                      -------------------- ------ --------------------
                     Total tax expense                                                                                              $   57                                                              $   74                                                              $   305                                                              $    425
                                                                                                                                                                                                                                                                                                                               
                     Effective tax rate (3)                                                                                           28.2 %                                                              23.1 %                                                               27.4 %                                                                27.4 %
(1)   Refer to Table 6 for a reconciliation of income from continuing
                         operations before interest and income taxes on a GAAP basis to
                         income from continuing operations before interest and income taxes
                         on a non-GAAP basis.
                          
(2)                      The effective tax rate for GAAP generally includes the impact of
                         discrete and permanent items in the period such items arise, whereas
                         the effective tax rate for non-GAAP generally allocates the impact
                         of such items pro rata to the fiscal year’s remaining reporting
                         periods.
                          
(3)                      The effective tax rate on GAAP and non-GAAP income from continuing
                         operations is the Company’s provision for income taxes expressed as
                         a percentage of GAAP and non-GAAP income from continuing operations
                         before income taxes, respectively. The non-GAAP effective tax rate
                         is equal to the full year GAAP effective tax rate. On an interim
                         basis, the effective tax rates are determined based on an estimated
                         effective full year tax rate after the adjustments for the impacts
                         of certain discrete items (such as changes in tax rates,
                         reconciliations of tax returns to tax provisions and resolutions of
                         tax contingencies).
                          
                         Refer to the discussion of non-GAAP financial measures included in
                         the accompanying press release for additional information.
                          
                         Results reflect the discontinued operations associated with the CA
                         ERwin Data Modeling and CA arcserve data protection businesses.
                          
                         Certain non-material differences may arise versus actual from impact
                         of rounding.
                          
                                                                                                                                                 Table 9
                                                                                                                                             CA Technologies
                                                                                                                     Reconciliation of Projected GAAP Metrics to Projected Non-GAAP
                                                                                                                                                 Metrics
                                                                                                                                               (unaudited)
 
                                                                                                                                                                             Fiscal Year Ending
                     Projected Diluted EPS from Continuing                                                                                                                                        March 31, 2017
                     Operations
                     ---------------------------------------------------------------                      ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                               
                     Projected GAAP diluted EPS from continuing operations range                                             $    1.92                                                 to                       $    1.97  
                                                                                                                                                                                                                                    
                     Non-GAAP adjustments, net of taxes:
                         Purchased software amortization                                                                                             0.25                                                                                                                     0.25
                         Other intangibles amortization                                                                                              0.03                                                                                                                     0.03
                         Internally developed software products amortization                                                                         0.14                                                                                                                     0.14
                         Share-based compensation                                                              0.17                                                            0.17  
                                                                                                          -------------------- -------------------- ----- --------------------                                                     -------------------- -------------------- ----- --------------------
                     Total non-GAAP adjustment                                                                               $    0.59                                                                          $    0.59  
                                                                                                          -------------------- -------------------- ----- --------------------                                                     -------------------- -------------------- ----- --------------------
                                                                                                                                                                                                                                    
                     Projected non-GAAP diluted EPS from continuing operations range                                         $    2.51                                                 to                       $    2.56  
                                                                                                          ==================== ==================== ===== ====================                                                     ==================== ==================== ===== ====================
                      
                      
                                                                                                                                                                                                Fiscal Year Ending
                     Projected Operating Margin                                                                                                                                                   March 31, 2017
                     ---------------------------------------------------------------                      ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                    
                     Projected GAAP operating margin                                                                                                                                                                       30 %
                                                                                                                                                                                                                                    
                     Non-GAAP operating adjustments:
                         Purchased software amortization                                                                                                                                                                    4 %
                         Other intangibles amortization                                                                                                                                                                     0 %
                         Internally developed software products amortization                                                                                                                                                2 %
                         Share-based compensation                                                                                                                                     2 %
                                                                                                                                                                               -------------------- -------------------- ---- ----
                     Total non-GAAP operating adjustment                                                                                                                              8 %
                                                                                                                                                                               -------------------- -------------------- ---- ----
                                                                                                                                                                                                                                    
                     Projected non-GAAP operating margin                                                                                                                             38 %
                                                                                                                                                                               ==================== ==================== ==== ====

Refer to the discussion of non-GAAP financial measures included in the accompanying press release for additional information.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160511006513r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160511006513/en/

SOURCE: CA Technologies

CA Technologies 
Saswato Das, 646-710-6690 
Corporate Communications 
Saswato.das@ca.com 
or 
Jennifer DiClerico, 917-968-9680 
Corporate Communications 
Jennifer.diclerico@ca.com 
or 
Traci Tsuchiguchi, 650-534-9814 
Investor Relations 
traci.tsuchiguchi@ca.com 
or 
Robert Lung, 212-415-6908 
Investor Relations 
robert.lung@ca.com


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