StockSelector.com
  Research, Select, & Monitor Friday, August 18, 2017 11:33:35 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
CA Technologies$32.37($.01)(.03%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 CA Technologies Reports Second Quarter Fiscal Year 2017 Results
   Thursday, October 27, 2016 4:05:13 PM ET

--Second Quarter Revenue of $1,018 Million

--Second Quarter GAAP EPS of $0.50

--Second Quarter Non-GAAP EPS of $0.67

--Second Quarter Cash Flow Used in Continuing Operations of $58 Million

CA Technologies (CA ) today reported financial results for its second quarter fiscal 2017, which ended September 30, 2016.

Mike Gregoire, CA Technologies Chief Executive Officer, said:

"CA delivered solid second quarter results. We reported another quarter of revenue growth with strong margins and earnings, and we are making progress across a number of our key initiatives. Our product development and innovation engines are beginning to gain momentum, and we’re pleased with our improving customer experience metrics. At the same time, we recognize we still have work ahead of us. We continue to manage the business with thoughtful discipline, and I remain confident that we are moving the company in the right direction.



"At CA World next month we will welcome thousands of our customers and partners from around the globe. We look forward to demonstrating the transformational power of software, and the critical role it plays in driving today’s new business models and strategies."

FINANCIAL OVERVIEW

                                      
----------------------------------------------------- -------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions, except share data)                                                                                                    Second Quarter FY17 vs. FY16
                                                                           ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              FY17                     FY16                   % Change               % Change CC*
                                                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Revenue                                                                           $1,018                   $1,005                     1%                2%
-----------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------
GAAP Income from Continuing Operations                                             $212                     $172                      23%               24%
-----------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------
Non-GAAP Income from Continuing Operations*                                        $283                     $247                      15%               13%
-----------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------
GAAP Diluted EPS from Continuing Operations                                        $0.50                    $0.39                     28%               31%
-----------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------
Non-GAAP Diluted EPS from Continuing Operations*                                   $0.67                    $0.56                     20%               18%
-----------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------
Cash Flow (used in) provided by Continuing Operations           ($58)                     $43                    (235)%            (239)%
----------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ------
                                                                                                                                                     

* Non-GAAP income, Non-GAAP earnings per share and CC or Constant Currency 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.

REVENUE AND BOOKINGS

        
----------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions)                                                                                                                                                               Second Quarter FY17 vs. FY16
                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                FY17                     % of                     FY16                     % of                       %                        %
                                                                                               Total                                                                                                                         Total                                                         Change                                                         Change
                                                                                                                                                                                                                                                                                                                                                            CC*
                        -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
North America Revenue                                $690                      68%                     $677                      67%                      2%                       2%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
International Revenue                                $328                      32%                     $328                      33%                      0%                       1%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Revenue                                       $1,018                         $1,005                           1%                       2%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                         
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
North America Bookings                               $479                      66%                    $1,173                     85%                     (59)%                    (59)%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
International Bookings                               $250                      34%                     $210                      15%                      19%                      18%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Bookings                                       $729                          $1,383                          (47)%                    (47)%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                         
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Current Revenue Backlog                             $2,945                         $3,006                          (2)%                     (2)%
-----------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total Revenue Backlog            $6,858                         $6,614                           4%                       4%
----------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                         

*CC or Constant Currency is a non-GAAP financial measure, 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.

-- Total revenue increased as a result of an increase in software fees and other revenue, partially offset by decreases in professional services revenue and subscription and maintenance revenue. The increase in software fees and other revenue was primarily due to an increase in sales of enterprise solutions products recognized on an upfront basis and an increase in SaaS revenue, primarily from CA Agile Central products (acquired from Rally Software Development Corp. (Rally)).

-- Total bookings decreased primarily due to a renewal with a large system integrator in excess of $500 million that occurred during the second quarter of fiscal 2016 and, to a lesser extent, a decrease in mainframe renewals.

-- The Company executed a total of 11 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $209 million. During the second quarter of fiscal 2016, the Company executed a total of 11 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $887 million, including the aforementioned large system integrator transaction.

-- The weighted average duration of subscription and maintenance bookings for the quarter was 2.99 years, compared with 4.46 years for the same period in fiscal 2016.

EXPENSES, MARGIN AND EARNINGS PER SHARE

                                    
--------------------------------------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions)                                                                                                                            Second Quarter FY17 vs. FY16
                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            FY17                     FY16                       %                        %
                                                                                                                                                                                         Change                                                         Change
                                                                                                                                                                                                                                                         CC**
                                                    -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
GAAP                                                                      
---------------------------------------------------                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Operating Expenses Before Interest and Income Taxes                              $698                     $746                     (6)%                     (6)%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating Income Before Interest and Income Taxes                                $320                     $259                      24%                      25%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Diluted EPS from Continuing Operations                                           $0.50                    $0.39                     28%                      31%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating Margin                                                                  31%                      26%                    
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Effective Tax Rate                                                               30.7%                    30.4%                   
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                      
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Non-GAAP*                                                                 
---------------------------------------------------                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Operating Expenses Before Interest and Income Taxes                              $608                     $648                     (6)%                     (5)%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating Income Before Interest and Income Taxes                                $410                     $357                      15%                      13%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Diluted EPS from Continuing Operations                                           $0.67                    $0.56                     20%                      18%
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Operating Margin                                                                  40%                      36%                    
---------------------------------------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Effective Tax Rate                                            28.5%                    28.4%                   
--------------------------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                   

*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. 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 or Constant Currency is a non-GAAP financial measure, 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.

-- GAAP and non-GAAP operating expenses decreased primarily due to decreases in personnel-related costs as a result of lower headcount and transaction costs associated with the fiscal 2016 acquisitions of Rally and Xceedium, Inc. (Xceedium) that occurred during the second quarter of fiscal 2016, partially offset by an increase in legal settlement expense related to a litigation matter reflected in other expenses, net. This increase in legal settlement expense is attributable to the Company entering into an agreement-in-principle to settle the previously disclosed litigation brought against the Company by the Department of Justice (DOJ) and an individual plaintiff relating to certain claims under the Company’s General Services Administration (GSA) schedule contract with the government. The settlement, which is for $45 million and admits no wrongdoing, is subject to the negotiation and execution of a definitive settlement agreement, and approval by the United States District Court.

-- GAAP operating expenses were also affected by lower amortization expenses of capitalized software and other intangible assets.

-- GAAP EPS was positively impacted by $0.10 from an improvement in GAAP operating margin primarily due to an overall decrease in GAAP operating expenses.

-- Non-GAAP EPS was positively impacted by $0.07 from an improvement in non-GAAP operating margin primarily due to an overall decrease in non-GAAP operating expenses.

SELECTED HIGHLIGHTS FROM THE QUARTER

-- CA Technologies has been positioned by Gartner, Inc. in the Leaders quadrant of its inaugural "Magic Quadrant for Application Release Automation." (1)

-- CA Technologies was named a Leader in the "The Forrester Wave(TM): Application Performance Management, Q3 2016." (2)

-- CA Technologies extended its DevOps portfolio with the acquisition of BlazeMeter, a leader in open source-based continuous application performance testing. BlazeMeter will seamlessly integrate with CA’s Continuous Delivery solutions to further improve testing efficiency and accelerate the deployment of applications. The deal closed earlier this month.

SEGMENT INFORMATION

      
--------------------- -------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(dollars in millions)                                                                                                                                            Second Quarter FY17 vs. FY16
                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Revenue                                                    %                        %                                        Operating Margin
                                                                                                                                                           Change                                                         Change
                                                                                                                                                                                                                            CC*
                      --------------------------------------------------------------------------------                                              --------------------                                           --------------------                                           ----------------------------------------------------------------
                              FY17                     FY16                             FY17             FY16
                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----
Mainframe Solutions                                $550                     $554                     (1)%                     (1)%              62%      62%
---------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- ---
Enterprise Solutions                               $393                     $368                      7%                       8%               18%      3%
---------------------                      -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- ---
Services                         $75                      $83                     (10)%                    (9)%              3%       5%
--------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---- -------------------- -------------------- ---
                                                                                                                                                                                                                                                                         

*CC or Constant Currency is a non-GAAP financial measure, 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.

-- Mainframe Solutions revenue declined primarily due to insufficient revenue from prior period new sales to offset the decline in revenue contribution from renewals.

-- Enterprise Solutions revenue increased primarily due to an increase in software fees and other revenue as described above. Operating margin increased primarily due to the transaction costs associated with the fiscal 2016 acquisitions of Rally and Xceedium that occurred during the second quarter of fiscal 2016.

-- Services revenue decreased primarily due to a decline in professional services engagements from prior periods. This decline in professional services engagements is a result of several factors including our products being easier to install and manage, an increase in the use of partners for services engagements and the completion of non-strategic projects during previous periods. Operating margin decreased primarily due to the overall decline in professional services revenue.

CASH FLOW FROM OPERATIONS

-- Cash flow used in operations for the second quarter of fiscal 2017 was $58 million, versus cash flow provided by operations of $43 million in the year-ago period. Cash flow from operations decreased compared with the year-ago period primarily due to a decrease in cash collections, as a result of lower single installment collections, and an increase in income tax payments, partially offset by a decrease in vendor disbursements and payroll.

CAPITAL STRUCTURE

-- Cash and cash equivalents at September 30, 2016 were $2.585 billion.

-- With $1.95 billion in total debt outstanding and $139 million in notional pooling, the Company’s net cash position was $496 million.

-- In the second quarter of fiscal 2017, the Company repurchased 1.5 million shares of common stock for $50 million.

-- As of September 30, 2016, the Company is currently authorized to purchase $650 million of its common stock under its current stock repurchase program.

-- The Company distributed $107 million in dividends to shareholders.

-- The Company’s outstanding share count at September 30, 2016 was 413 million.

OUTLOOK FOR FISCAL YEAR 2017

The Company updated its fiscal 2017 outlook for cash flow from continuing operations. This guidance update reflects the anticipated settlement of legal matters related to the agreement-in-principle for the GSA litigation described above. The following outlook contains "forward-looking statements" (as defined below) and assumes no material acquisitions.

The Company expects the following:*

-- Total revenue to increase in a range of flat to plus 1 percent as reported and in constant currency, unchanged from previous guidance. At September 30, 2016 exchange rates, this translates to reported revenue of $4.03 billion to $4.07 billion.

-- GAAP diluted earnings per share from continuing operations to increase in a range of 6 percent to 8 percent as reported and 2 percent to 5 percent in constant currency, unchanged from previous guidance. At September 30, 2016 exchange rates, this translates to reported GAAP diluted earnings per share from continuing operations of $1.88 to $1.93.

-- Non-GAAP diluted earnings per share from continuing operations to increase in a range of 2 percent to 5 percent as reported and 1 percent to 3 percent in constant currency, unchanged from previous guidance. At September 30, 2016 exchange rates, this translates to reported non-GAAP diluted earnings per share from continuing operations of $2.49 to $2.54.

-- Cash flow from continuing operations to change in a range of minus 3 percent to plus 1 percent as reported and in constant currency. At September 30, 2016 exchange rates, this translates to reported cash flow from continuing operations of $1.01 billion to $1.05 billion. Previous guidance was to increase in a range of 2 percent to 6 percent as reported and 1 percent to 5 percent in constant currency.

The Company expects a full-year GAAP operating margin of 29 percent and non-GAAP operating margin of 38 percent, unchanged from previous guidance.

The Company also expects a full-year GAAP and non-GAAP effective tax rate of between 28 percent and 29 percent, unchanged from previous guidance.

The Company anticipates approximately 411 million shares outstanding at fiscal 2017 year-end and weighted average diluted shares outstanding of approximately 414 million for the fiscal year.

*In the outlook section, certain non-material differences between growth rates and translated dollar amounts may arise from impact of rounding.

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 second quarter 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) Gartner, Inc., "Magic Quadrant for Application Release
      Automation," Colin Fletcher, David Paul Williams, Laurie F. Wurster,
      August 1, 2016.
 
      The Gartner Report(s) described herein, (the "Gartner
      Report(s)") represent(s) research opinion or viewpoints published,
      as part of a syndicated subscription service, by Gartner, Inc.
      ("Gartner"), and are not representations of fact. Each Gartner
      Report speaks as of its original publication date (and not as of
      the date of this Quarterly Report) and the opinions expressed in
      the Gartner Report(s) are subject to change without notice.
      Gartner does not endorse any vendor, product or service
      depicted in its research publications, and does not advise
      technology users to select only those vendors with the highest
      ratings or other designation. Gartner research publications
      consist of the opinions of Gartner’s research organization and
      should not be construed as statements of fact. Gartner disclaims
      all warranties, expressed or implied, with respect to this
      research, including any warranties of merchantability or fitness
      for a particular purpose.
 
      (2) Forrester Research, Inc., "The Forrester Wave(TM): Application
      Performance Management, Q3 2016," September 22, 2016
 

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: non-cash amortization of purchased software, internally developed software and other intangible assets; share-based compensation expense; 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 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. 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. Non-GAAP adjusted cash flow from operations excludes payments associated with the fiscal 2014 Board-approved rebalancing initiative as described above and restructuring and other payments. Non-GAAP free cash flow excludes purchases of property and equipment. 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 and March 31, 2014, 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 by the Company 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 forecasted 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 news release (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 business strategy by, among other things, ensuring that any new offerings address the needs of a rapidly changing market while not adversely affecting the demand for the Company’s traditional products or the Company’s profitability to an extent greater than anticipated, enabling the Company’s sales force to accelerate growth of sales to new customers and expand sales with existing customers, including sales outside of the Company’s renewal cycle and to a broadening set of purchasers outside of traditional information technology operations (with such growth and expansion at levels sufficient to offset any decline in revenue and/or sales in the Company’s Mainframe Solutions segment and in certain mature product lines in the Company’s Enterprise Solutions segment), 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 financial performance to an extent greater than anticipated, and effectively managing the Company’s pricing and other go-to-market strategies, as well as improving the Company’s brand, technology and innovation awareness in the marketplace; 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 the Company’s solutions by the Company’s partners; the ability to retain and attract qualified professionals; general economic conditions and credit constraints, or unfavorable economic conditions in a particular region, business or industry 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 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 other 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 the forward-looking information described herein as believed, planned, anticipated, expected, estimated, targeted or similarly identified. We do not intend to update these forward-looking statements, 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                                                                                                                            Six Months Ended
                                                                                                                                                                                                 September 30,                                                                                                                                September 30,
                                                                                                                                                       ------------------------------------------------------------------------------------------                                                 -----------------------------------------------------------------------------------------------
                     Revenue:                                                                                                                                                2016                                                                 2015                                                                  2016                                                                      2015
                                                                                                                                                                            -----                                                                -----                                                                 -----                                                                ----------
                     Subscription and maintenance                                                                                                                         $   824                                                              $   832                                                               $ 1,650                                                              $      1,668
                     Professional services                                                                                                                                     75                                                                   83                                                                   152                                                                       162
                     Software fees and other                                                                                                               119                                                90                                                215                                                    152
                                                                                                                                                       -------------------- -----                                           -------------------- -----                                            -------------------- -----                                           -------------------- ----------
                     Total revenue                                                                                                                                        $ 1,018                                                              $ 1,005                                                               $ 2,017                                                              $      1,982
                                                                                                                                                       -------------------- -----                                           -------------------- -----                                            -------------------- -----                                           -------------------- ----------
                     Expenses:
                     Costs of licensing and maintenance                                                                                                                   $    66                                                              $    70                                                               $   134                                                              $        136
                     Cost of professional services                                                                                                                             73                                                                   78                                                                   148                                                                       149
                     Amortization of capitalized software costs                                                                                                                59                                                                   67                                                                   125                                                                       127
                     Selling and marketing                                                                                                                                    235                                                                  248                                                                   477                                                                       474
                     General and administrative                                                                                                                                84                                                                   99                                                                   172                                                                       189
                     Product development and enhancements                                                                                                                     136                                                                  151                                                                   284                                                                       287
                     Depreciation and amortization of other intangible assets                                                                                                  18                                                                   29                                                                    38                                                                        56
                     Other expenses, net                                                                                                                    27                                                 4                                                 27                                                      1
                                                                                                                                                       -------------------- -----                                           -------------------- -----                                            -------------------- -----                                           -------------------- ----------
                     Total expenses before interest and income taxes                                                                                                      $   698                                                              $   746                                                               $ 1,405                                                              $      1,419
                                                                                                                                                       -------------------- -----                                           -------------------- -----                                            -------------------- -----                                           -------------------- ----------
                     Income from continuing operations before interest and income taxes                                                                                   $   320                                                              $   259                                                               $   612                                                              $        563
                     Interest expense, net                                                                                                                  14                                                12                                                 29                                                     21
                                                                                                                                                       -------------------- -----                                           -------------------- -----                                            -------------------- -----                                           -------------------- ----------
                     Income from continuing operations before income taxes                                                                                                $   306                                                              $   247                                                               $   583                                                              $        542
                     Income tax expense                                                                                                                     94                                                75                                                173                                                    163
                                                                                                                                                       -------------------- -----                                           -------------------- -----                                            -------------------- -----                                           -------------------- ----------
                     Income from continuing operations                                                                                                                    $   212                                                              $   172                                                               $   410                                                              $        379
                     Income from discontinued operations, net of income taxes                                                                                             $     -                                                              $     2                                                               $     -                                                              $          7
                                                                                                                                                       -------------------- -----                                           -------------------- -----                                            -------------------- -----                                           -------------------- ----------
                     Net income                                                                                                                                           $   212                                                              $   174                                                               $   410                                                              $        386
                                                                                                                                                       ==================== =====                                           ==================== =====                                            ==================== =====                                           ==================== ==========
                                                                                                                                                                                                                                                                                                                                                                        
                     Basic income per common share:
                     Income from continuing operations                                                                                                                    $  0.50                                                              $  0.39                                                               $  0.98                                                              $       0.86
                     Income from discontinued operations                                                                                                     -                                                 -                                                  -                                                   0.02
                                                                                                                                                       -------------------- -----                                           -------------------- -----                                            -------------------- -----                                           -------------------- ----------
                     Net income                                                                                                                                           $  0.50                                                              $  0.39                                                               $  0.98                                                              $       0.88
                                                                                                                                                       ==================== =====                                           ==================== =====                                            ==================== =====                                           ==================== ==========
                     Basic weighted average shares used in computation                                                                                                        414                                                                  436                                                                   414                                                                       436
                                                                                                                                                                                                                                                                                                                                                                        
                     Diluted income per common share:
                     Income from continuing operations                                                                                                                    $  0.50                                                              $  0.39                                                               $  0.98                                                              $       0.86
                     Income from discontinued operations                                                                                                     -                                                 -                                                  -                                                   0.02
                                                                                                                                                       -------------------- -----                                           -------------------- -----                                            -------------------- -----                                           -------------------- ----------
                     Net income                                                                                                                                           $  0.50                                                              $  0.39                                                               $  0.98                                                              $       0.88
                                                                                                                                                       ==================== =====                                           ==================== =====                                            ==================== =====                                           ==================== ==========
                     Diluted weighted average shares used in computation                                                                                                      415                                                                  437                                                                   415                                                                       437
                                                                                                                                                                                                                                                                                                                                                                        
 
                                                                                                                                  Table 2
                                                                                                                              CA Technologies
                                                                                                                   Condensed Consolidated Balance Sheets
                                                                                                                               (in millions)
                                                                                                              
                                                                                                                                                                  September 30,                                                                   March 31,
                                                                                                                                                                      2016                                                                          2016
                                                                                                                                                          ---------------------------                                            ----------------------------------------
                                                                                                                                                                   (unaudited)
                     Cash and cash equivalents                                                                                                                               $   2,585                                                              $                2,812
                     Trade accounts receivable, net                                                                                                                                445                                                                                 625
                     Other current assets                                                                                                                       148                                                              124
                                                                                                                                                          -------------------- -------                                           -------------------- --------------------
                     Total current assets                                                                                                                                    $   3,178                                                              $                3,561
                                                                                                                                                                                                                                  
                     Property and equipment, net                                                                                                                             $     222                                                              $                  242
                     Goodwill                                                                                                                                                    6,083                                                                               6,086
                     Capitalized software and other intangible assets, net                                                                                                         662                                                                                 795
                     Deferred income taxes                                                                                                                                         422                                                                                 407
                     Other noncurrent assets, net                                                                                                               120                                                              113
                                                                                                                                                          -------------------- -------                                           -------------------- --------------------
                     Total assets                                                                                                                                            $  10,687                                                              $               11,204
                                                                                                                                                          ==================== =======                                           ==================== ====================
                                                                                                                                                                                                                                  
                     Current portion of long-term debt                                                                                                                       $       4                                                              $                    6
                     Deferred revenue (billed or collected)                                                                                                                      1,790                                                                               2,197
                     Other current liabilities                                                                                                                  614                                                              691
                                                                                                                                                          -------------------- -------                                           -------------------- --------------------
                     Total current liabilities                                                                                                                               $   2,408                                                              $                2,894
                                                                                                                                                                                                                                  
                     Long-term debt, net of current portion                                                                                                                  $   1,946                                                              $                1,947
                     Deferred income taxes                                                                                                                                           3                                                                                   3
                     Deferred revenue (billed or collected)                                                                                                                        580                                                                                 737
                     Other noncurrent liabilities                                                                                                               221                                                              245
                                                                                                                                                          -------------------- -------                                           -------------------- --------------------
                     Total liabilities                                                                                                                                       $   5,158                                                              $                5,826
                                                                                                                                                          -------------------- -------                                           -------------------- --------------------
                                                                                                                                                                                                                                  
                     Common stock                                                                                                                                            $      59                                                              $                   59
                     Additional paid-in capital                                                                                                                                  3,652                                                                               3,664
                     Retained earnings                                                                                                                                           6,771                                                                               6,575
                     Accumulated other comprehensive loss                                                                                                                        (435)                                                                               (416)
                     Treasury stock                                                                                                                         (4,518)                                                          (4,504)
                                                                                                                                                          -------------------- -------                                           -------------------- --------------------
                     Total stockholders’ equity                                                                                                   $   5,529                                                              $                5,378
                                                                                                                                                          -------------------- -------                                           -------------------- --------------------
                     Total liabilities and stockholders’ equity                                                                                   $  10,687                                                              $               11,204
                                                                                                                                                          ==================== =======                                           ==================== ====================
                                                                                                                                                                                                                                                       
 
                                                                                                                                        Table 3
                                                                                                                                    CA Technologies
                                                                                                                    Condensed Consolidated Statements of Cash Flows
                                                                                                                                      (unaudited)
                                                                                                                                     (in millions)
                                                                                                                                  Three Months Ended
                                                                                                                                                                                                                 September 30,
                                                                                                                                                       -------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                2016                                  2015
                                                                                                                                                                            -----------                                                                                     ----------
                     Operating activities from continuing operations:
                     Net income                                                                                                                                           $         212                                                                                   $        174
                     Income from discontinued operations                                                                                                           -                                                                         (2)
                                                                                                                                                       -------------------- -----------                                                                -------------------- ----------
                     Income from continuing operations                                                                                                                    $         212                                                                                   $        172
                     Adjustments to reconcile income from continuing operations to net
                     cash provided
                     by operating activities:
                        Depreciation and amortization                                                                                                                                77                                                                                             96
                        Deferred income taxes                                                                                                                                      (14)                                                                                           (18)
                        Provision for bad debts                                                                                                                                       1                                                                                              -
                        Share-based compensation expense                                                                                                                             25                                                                                             23
                        Other non-cash items                                                                                                                                          2                                                                                              -
                        Foreign currency transaction losses                                                                                                                           1                                                                                              3
                     Changes in other operating assets and liabilities, net of effect of
                     acquisitions:
                        (Increase) decrease in trade accounts receivable                                                                                                           (17)                                                                                              3
                        Decrease in deferred revenue                                                                                                                              (317)                                                                                          (257)
                        Decrease in taxes payable, net                                                                                                                             (45)                                                                                           (25)
                        Increase in accounts payable, accrued expenses and other                                                                                                     11                                                                                             24
                        Increase in accrued salaries, wages and commissions                                                                                                          18                                                                                             17
                        Changes in other operating assets and liabilities                                                                                       (12)                                                                           5
                                                                                                                                                       -------------------- -----------                                                                -------------------- ----------
                     Net cash (used in) provided by operating activities - continuing                                                                                     $        (58)                                                                                   $         43
                     operations
                                                                                                                                                       -------------------- -----------                                                                -------------------- ----------
                     Investing activities from continuing operations:
                     Acquisitions of businesses, net of cash acquired, and purchased                                                                                      $           -                                                                                   $      (610)
                     software
                     Purchases of property and equipment                                                                                                                            (8)                                                                                           (10)
                     Proceeds from sale of short-term investments                                                                                                  -                                                                          48
                                                                                                                                                       -------------------- -----------                                                                -------------------- ----------
                     Net cash used in investing activities - continuing operations                                                                                        $         (8)                                                                                   $      (572)
                                                                                                                                                       -------------------- -----------                                                                -------------------- ----------
                     Financing activities from continuing operations:
                     Dividends paid                                                                                                                                       $       (107)                                                                                   $      (110)
                     Purchases of common stock                                                                                                                                     (50)                                                                                           (65)
                     Notional pooling borrowings, net                                                                                                                                 7                                                                                             13
                     Debt borrowings, net                                                                                                                                             -                                                                                            399
                     Debt issuance costs                                                                                                                                              -                                                                                            (3)
                     Exercise of common stock options                                                                                                                                13                                                                                              -
                     Other financing activities                                                                                                                    -                                                                           5
                                                                                                                                                       -------------------- -----------                                                                -------------------- ----------
                     Net cash (used in) provided by financing activities - continuing                                                                                     $       (137)                                                                                   $        239
                     operations
                     Effect of exchange rate changes on cash                                                                                                              $          12                                                                                   $       (70)
                                                                                                                                                       -------------------- -----------                                                                -------------------- ----------
                     Net change in cash and cash equivalents - continuing operations                                                                                      $       (191)                                                                                   $      (360)
                     Cash provided by operating activities - discontinued operations                                                                                      $           -                                                                                   $          2
                                                                                                                                                       -------------------- -----------                                                                -------------------- ----------
                     Net effect of discontinued operations on cash and cash equivalents                                                                                   $           -                                                                                   $          2
                                                                                                                                                       -------------------- -----------                                                                -------------------- ----------
                     Decrease increase in cash and cash equivalents                                                                                                       $       (191)                                                                                   $      (358)
                     Cash and cash equivalents at beginning of period                                                                                                     $       2,776                                                                                   $      2,816
                                                                                                                                                       -------------------- -----------                                                                -------------------- ----------
                     Cash and cash equivalents at end of period                                                                                                           $       2,585                                                                                   $      2,458
                                                                                                                                                       ==================== ===========                                                                ==================== ==========
                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                     Table 4
                                                                                                                                                                                                                                     CA Technologies
                                                                                                                                                                                                                                     Operating Segments
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                     (dollars in millions)
                                                                                                                                                                                                                                                        
                                                                                                                                                                 Three Months Ended September 30, 2016                                                                                                                                                                                                                                                                                       Six Months Ended September 30, 2016
                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Mainframe                                                                 Enterprise                                                             Services (1)                                                             Total                                                                                      Mainframe                                                                 Enterprise                                                                Services (1)                                                                   Total
                                                                   Solutions (1)                                                              Solutions (1)                                                                                                                                                                                                                             Solutions (1)                                                              Solutions (1)
                                                        -------------------------------                                             ------------------------------                                             ------------------------                                             -------------------------                                                                 ------------------------------                                             ------------------------------                                             ------------------------------                                             ------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                     Revenue (2)                                           $          550                                                              $         393                                                              $    75                                                              $ 1,018                                                                                   $       1,101                                                              $         764                                                              $         152                                                              $      2,017
                     Expenses (3)                                  211                                                     324                                                73                                               608                                                                          419                                                     648                                                     148                                                  1,215
                                                        -------------------- -------------                                          -------------------- ------------                                          -------------------- ------                                          -------------------- -----                                                                -------------------- ------------                                          -------------------- ------------                                          -------------------- ------------                                          -------------------- ----------
                     Segment profit                                        $          339                                                              $          69                                                              $     2                                                              $   410                                                                                   $         682                                                              $         116                                                              $           4                                                              $        802
                                                        ==================== =============                                          ==================== ============                                          ==================== ======                                          ==================== =====                                                                ==================== ============                                          ==================== ============                                          ==================== ============                                          ==================== ==========
                     Segment operating margin                                         62%                                                                        18%                                                                   3%                                                                  40%                                                                                             62%                                                                        15%                                                                         3%                                                                       40%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                     Segment profit                                                                                                                                                                                                                                                                    $   410                                                                                                                                                                                                                                                                                                                    $        802
                     Less:
                        Purchased software amortization                                                                                                                                                                                                                                                     38                                                                                                                                                                                                                                                                                                                              81
                        Other intangibles amortization                                                                                                                                                                                                                                                       4                                                                                                                                                                                                                                                                                                                               9
                        Internally developed software products amortization                                                                                                                                                                                                                                 21                                                                                                                                                                                                                                                                                                                              44
                        Share-based compensation expense                                                                                                                                                                                                                                                    25                                                                                                                                                                                                                                                                                                                              54
                        Other expenses, net (4)                                                                                                                                                                                                                                                              2                                                                                                                                                                                                                                                                                                                               2
                        Interest expense, net                                                                                                                                                                                                                                            14                                                                                                                                                                                                                                                                                                           29
                                                                                                                                                                                                                                                                                    -------------------- -----                                                                                                                                                                                                                                                                                                 -------------------- ----------
                     Income from continuing operations before income taxes                                                                                                                                                                                                                             $   306                                                                                                                                                                                                                                                                                                                    $        583
                                                                                                                                                                                                                                                                                    ==================== =====                                                                                                                                                                                                                                                                                                 ==================== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                 Three Months Ended September 30, 2015                                                                                                                                                                                                                                                                                       Six Months Ended September 30, 2015
                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Mainframe                                                                 Enterprise                                                             Services (1)                                                             Total                                                                                      Mainframe                                                                 Enterprise                                                                Services (1)                                                                   Total
                                                                   Solutions (1)                                                              Solutions (1)                                                                                                                                                                                                                             Solutions (1)                                                              Solutions (1)
                                                        -------------------------------                                             ------------------------------                                             ------------------------                                             -------------------------                                                                 ------------------------------                                             ------------------------------                                             ------------------------------                                             ------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                     Revenue (2)                                           $          554                                                              $         368                                                              $    83                                                              $ 1,005                                                                                   $       1,114                                                              $         706                                                              $         162                                                              $      1,982
                     Expenses (3)                                  212                                                     357                                                79                                               648                                                                          423                                                     647                                                     150                                                  1,220
                                                        -------------------- -------------                                          -------------------- ------------                                          -------------------- ------                                          -------------------- -----                                                                -------------------- ------------                                          -------------------- ------------                                          -------------------- ------------                                          -------------------- ----------
                     Segment profit                                        $          342                                                              $          11                                                              $     4                                                              $   357                                                                                   $         691                                                              $          59                                                              $          12                                                              $        762
                                                        ==================== =============                                          ==================== ============                                          ==================== ======                                          ==================== =====                                                                ==================== ============                                          ==================== ============                                          ==================== ============                                          ==================== ==========
                     Segment operating margin                                         62%                                                                         3%                                                                   5%                                                                  36%                                                                                             62%                                                                         8%                                                                         7%                                                                       38%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                     Segment profit                                                                                                                                                                                                                                                                    $   357                                                                                                                                                                                                                                                                                                                    $        762
                     Less:
                        Purchased software amortization                                                                                                                                                                                                                                                     39                                                                                                                                                                                                                                                                                                                              67
                        Other intangibles amortization                                                                                                                                                                                                                                                      14                                                                                                                                                                                                                                                                                                                              25
                        Internally developed software products amortization                                                                                                                                                                                                                                 28                                                                                                                                                                                                                                                                                                                              60
                        Share-based compensation expense                                                                                                                                                                                                                                                    23                                                                                                                                                                                                                                                                                                                              45
                        Other (gains) expenses, net (4)                                                                                                                                                                                                                                                    (6)                                                                                                                                                                                                                                                                                                                               2
                        Interest expense, net                                                                                                                                                                                                                                            12                                                                                                                                                                                                                                                                                                           21
                                                                                                                                                                                                                                                                                    -------------------- -----                                                                                                                                                                                                                                                                                                 -------------------- ----------
                     Income from continuing operations before income taxes                                                                                                                                                                                                                             $   247                                                                                                                                                                                                                                                                                                                    $        542
                                                                                                                                                                                                                                                                                    ==================== =====                                                                                                                                                                                                                                                                                                 ==================== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
(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 (gains) expenses, net consists of costs associated with
                         certain foreign exchange derivative hedging gains and losses, and
                         other miscellaneous costs.
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                     Table 5
                                                                                                                                                                                                                                     CA Technologies
                                                                                                                                                                                                                                     Constant Currency Summary
                                                                                                                                                                                                                                     (unaudited)
                                                                                                                                                                                                                                     (dollars in millions)
                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                Three Months Ended September 30,                                                                                                                                                                                                                                                                     Six Months Ended September 30,
                                                                                                                                                                                                                                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                           2016                                                                                      2015                                                                % Increase                                            % Increase                                                                  2016                                                                                      2015                                                                % Increase                                                % Increase
                                                                                                                                                                                                                                                                                                                                                                                                                                                         (Decrease)                                            (Decrease)                                                                                                                                                                                                                                (Decrease)                                                (Decrease)
                                                                                                                                                                                                                                                                                                                                                                                                                                                           in $ US                                             in Constant                                                                                                                                                                                                                                 in $ US                                                 in Constant
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Currency (1)                                                                                                                                                                                                                                                                                        Currency (1)
                                                                                                                                                                                                                                                                                          -----                                                                                     -----                                                                ---------                                            -----------                                                                 -----                                                                                     -----                                                                ---------                                            --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Bookings                                                                                                                                                                                                                                                           $   729                                                                                   $ 1,383                                                                (47)%                                                 (47)%                                                                    $ 2,082                                                                                   $ 2,045                                                                   2%                                                                  2%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Revenue:
                     North America                                                                                                                                                                                                                                                      $   690                                                                                   $   677                                                                   2%                                                    2%                                                                    $ 1,359                                                                                   $ 1,329                                                                   2%                                                                  2%
                     International                                                                                                                                                                                                                                       328                                                                    328                                                                   0%                                                    1%                                                     658                                                                    653                                                                   1%                                                                  2%
                                                                                                                                                                                                                                                                     -------------------- -----                                                                -------------------- -----                                                                -----                                                ------                                                 -------------------- -----                                                                -------------------- -----                                                                -----                                                --------------------
                     Total revenue                                                                                                                                                                                                                                                      $ 1,018                                                                                   $ 1,005                                                                   1%                                                    2%                                                                    $ 2,017                                                                                   $ 1,982                                                                   2%                                                                  2%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Revenue:
                     Subscription and maintenance                                                                                                                                                                                                                                       $   824                                                                                   $   832                                                                 (1)%                                                  (1)%                                                                    $ 1,650                                                                                   $ 1,668                                                                 (1)%                                                                (1)%
                     Professional services                                                                                                                                                                                                                                                   75                                                                                        83                                                                (10)%                                                  (9)%                                                                        152                                                                                       162                                                                 (6)%                                                                (6)%
                     Software fees and other                                                                                                                                                                                                                             119                                                                     90                                                                  32%                                                   34%                                                     215                                                                    152                                                                  41%                                                                 43%
                                                                                                                                                                                                                                                                     -------------------- -----                                                                -------------------- -----                                                                -----                                                ------                                                 -------------------- -----                                                                -------------------- -----                                                                -----                                                --------------------
                     Total revenue                                                                                                                                                                                                                                                      $ 1,018                                                                                   $ 1,005                                                                   1%                                                    2%                                                                    $ 2,017                                                                                   $ 1,982                                                                   2%                                                                  2%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Segment Revenue:
                     Mainframe solutions                                                                                                                                                                                                                                                $   550                                                                                   $   554                                                                 (1)%                                                  (1)%                                                                    $ 1,101                                                                                   $ 1,114                                                                 (1)%                                                                (1)%
                     Enterprise solutions                                                                                                                                                                                                                                                   393                                                                                       368                                                                   7%                                                    8%                                                                        764                                                                                       706                                                                   8%                                                                  9%
                     Services                                                                                                                                                                                                                                                                75                                                                                        83                                                                (10)%                                                  (9)%                                                                        152                                                                                       162                                                                 (6)%                                                                (6)%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                     Total expenses before interest and income
                     taxes:
                     Total non-GAAP (2)                                                                                                                                                                                                                                                 $   608                                                                                   $   648                                                                 (6)%                                                  (5)%                                                                    $ 1,215                                                                                   $ 1,220                                                                   0%                                                                  1%
                     Total GAAP                                                                                                                                                                                                                                                             698                                                                                       746                                                                 (6)%                                                  (6)%                                                                      1,405                                                                                     1,419                                                                 (1)%                                                                  0%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
(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, 2016, 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.
                          
                         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                                                                                                                          Six Months Ended
                                                                                                                                                                                    September 30,                                                                                                                              September 30,
                                                                                                                                                      --------------------------------------------------------------------                                                                    --------------------------------------------------------------------------
                                                                                                                                                                           2016                                           2015                                                                                     2016                                                 2015
                                                                                                                                                                           ----                                           ----                                                                                     ----                                           ----------
                     GAAP net income                                                                                                                                     $  212                                         $  174                                                                                   $  410                                         $        386
                     GAAP income from discontinued operations, net of income taxes                                                                         -                         (2)                                                                     -                               (7)
                                                                                                                                                      -------------------- ----                      -------------------- ----                                                                -------------------- ----                      -------------------- ----------
                     GAAP income from continuing operations                                                                                                              $  212                                         $  172                                                                                   $  410                                         $        379
                     GAAP income tax expense                                                                                                                                 94                                             75                                                                                      173                                                  163
                     Interest expense, net                                                                                                                14                          12                                                                    29                                21
                                                                                                                                                      -------------------- ----                      -------------------- ----                                                                -------------------- ----                      -------------------- ----------
                     GAAP income from continuing operations before interest and income                                                                                   $  320                                         $  259                                                                                   $  612                                         $        563
                     taxes
                                                                                                                                                      -------------------- ----                      -------------------- ----                                                                -------------------- ----                      -------------------- ----------
                     GAAP operating margin (% of revenue) (1)                                                                                                               31%                                            26%                                                                                      30%                                                  28%
                                                                                                                                                                                                                                                                                                                                              
                     Non-GAAP adjustments to expenses:
                        Costs of licensing and maintenance (2)                                                                                                           $    1                                         $    1                                                                                   $    3                                         $          3
                        Cost of professional services (2)                                                                                                                     1                                              1                                                                                        2                                                    2
                        Amortization of capitalized software costs (3)                                                                                                       59                                             67                                                                                      125                                                  127
                        Selling and marketing (2)                                                                                                                             9                                              8                                                                                       19                                                   16
                        General and administrative (2)                                                                                                                        8                                              9                                                                                       19                                                   16
                        Product development and enhancements (2)                                                                                                              6                                              4                                                                                       11                                                    8
                        Depreciation and amortization of other intangible assets (4)                                                                                          4                                             14                                                                                        9                                                   25
                        Other expenses (gains), net (5)                                                                                                    2                         (6)                                                                     2                                 2
                                                                                                                                                      -------------------- ----                      -------------------- ----                                                                -------------------- ----                      -------------------- ----------
                     Total Non-GAAP adjustment to operating expenses                                                                                                     $   90                                         $   98                                                                                   $  190                                         $        199
                                                                                                                                                      -------------------- ----                      -------------------- ----                                                                -------------------- ----                      -------------------- ----------
                     Non-GAAP income from continuing operations before interest and                                                                                      $  410                                         $  357                                                                                   $  802                                         $        762
                     income taxes
                     Non-GAAP operating margin (% of revenue) (6)                                                                                                           40%                                            36%                                                                                      40%                                                  38%
                                                                                                                                                                                                                                                                                                                                              
                     Interest expense, net                                                                                                                                   14                                             12                                                                                       29                                                   21
                     GAAP income tax expense                                                                                                                                 94                                             75                                                                                      173                                                  163
                     Non-GAAP adjustment to income tax expense (7)                                                                                        19                          23                                                                    48                                48
                                                                                                                                                      -------------------- ----                      -------------------- ----                                                                -------------------- ----                      -------------------- ----------
                     Non-GAAP income tax expense                                                                                                                         $  113                                         $   98                                                                                   $  221                                         $        211
                                                                                                                                                      -------------------- ----                      -------------------- ----                                                                -------------------- ----                      -------------------- ----------
                     Non-GAAP income from continuing operations                                                                                                          $  283                                         $  247                                                                                   $  552                                         $        530
                                                                                                                                                      ==================== ====                      ==================== ====                                                                ==================== ====                      ==================== ==========
                                                                                                                                                                                                                                                                                                                                              
(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 September 30, 2016 and 2015,
                         non-GAAP adjustment consists of $38 million and $39 million of
                         purchased software amortization and $21 million and $28 million of
                         internally developed software products amortization, respectively.
                         For the six month periods ending September 30, 2016 and 2015,
                         non-GAAP adjustment consists of $81 million and $67 million of
                         purchased software amortization and $44 million and $60 million of
                         internally developed software products amortization, respectively.
                          
(4)                      Non-GAAP adjustment consists of other intangibles amortization.
                          
(5)                      Non-GAAP adjustment consists 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.
                          
                         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                                                                                                                                  Six Months Ended
                                                                                                                                                                           September 30,                                                                                                                                      September 30,
                                                                                                                                           ------------------------------------------------------------------------                                                                    --------------------------------------------------------------------------------------
                     Operating Expenses                                                                                                                2016                                             2015                                                                                       2016                                                    2015
                     ------------------------------------------------------                                                                --------------------------                       --------------------------                                                                 --------------------------                       ----------------------------------------
                                                                                                                                                                                                                                                                                                                                         
                     Total expenses before interest and income taxes                                                                                          $    698                                         $    746                                                                                   $  1,405                                         $                1,419
                                                                                                                                                                                                                                                                                                                                         
                     Non-GAAP operating adjustments:
                        Purchased software amortization                                                                                                             38                                               39                                                                                         81                                                             67
                        Other intangibles amortization                                                                                                               4                                               14                                                                                          9                                                             25
                        Internally developed software products amortization                                                                                         21                                               28                                                                                         44                                                             60
                        Share-based compensation                                                                                                                    25                                               23                                                                                         54                                                             45
                        Other expenses (gains), net (1)                                                                                           2                           (6)                                                                       2                                           2
                                                                                                                                           -------------------- ------                      -------------------- ------                                                                -------------------- ------                      -------------------- --------------------
                     Total non-GAAP operating adjustment                                                                                                      $     90                                         $     98                                                                                   $    190                                         $                  199
                                                                                                                                           -------------------- ------                      -------------------- ------                                                                -------------------- ------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                         
                     Total non-GAAP operating expenses                                                                                                        $    608                                         $    648                                                                                   $  1,215                                         $                1,220
                                                                                                                                           ==================== ======                      ==================== ======                                                                ==================== ======                      ==================== ====================
                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                        Three Months Ended                                                                                                                                  Six Months Ended
                                                                                                                                                                           September 30,                                                                                                                                      September 30,
                                                                                                                                           ------------------------------------------------------------------------                                                                    --------------------------------------------------------------------------------------
                     Diluted EPS from Continuing Operations                                                                                            2016                                             2015                                                                                       2016                                                    2015
                     ------------------------------------------------------                                                                --------------------------                       --------------------------                                                                 --------------------------                       ----------------------------------------
                                                                                                                                                                                                                                                                                                                                         
                     GAAP diluted EPS from continuing operations                                                                                              $   0.50                                         $   0.39                                                                                   $   0.98                                         $                 0.86
                                                                                                                                                                                                                                                                                                                                         
                     Non-GAAP adjustments:
                        Purchased software amortization                                                                                                           0.09                                             0.09                                                                                       0.19                                                           0.15
                        Other intangibles amortization                                                                                                            0.01                                             0.03                                                                                       0.02                                                           0.06
                        Internally developed software products amortization                                                                                       0.05                                             0.06                                                                                       0.10                                                           0.13
                        Share-based compensation                                                                                                                  0.06                                             0.05                                                                                       0.13                                                           0.10
                        Other expenses (gains), net (1)                                                                                                              -                                           (0.01)                                                                                          -                                                           0.01
                        Tax effect of non-GAAP adjustments                                                                                                      (0.06)                                           (0.07)                                                                                     (0.13)                                                         (0.14)
                        Non-GAAP effective tax rate adjustments (2)                                                                            0.02                          0.02                                                                    0.02                                        0.03
                                                                                                                                           -------------------- ------                      -------------------- ------                                                                -------------------- ------                      -------------------- --------------------
                     Total non-GAAP adjustment                                                                                                                $   0.17                                         $   0.17                                                                                   $   0.33                                         $                 0.34
                                                                                                                                           -------------------- ------                      -------------------- ------                                                                -------------------- ------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                         
                     Non-GAAP diluted EPS from continuing operations                                                                                          $   0.67                                         $   0.56                                                                                   $   1.31                                         $                 1.20
                                                                                                                                           ==================== ======                      ==================== ======                                                                ==================== ======                      ==================== ====================
                                                                                                                                                                                                                                                                                                                                                              
(1)   Other expenses (gains), net consists of costs associated with
                         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.
                          
                         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                                                                                                                                                                           Six Months Ended
                                                                                                                                                                                                            September 30, 2016                                                                                                                                                                          September 30, 2016
                                                                                                                                                           --------------------------------------------------------------------------------------------------------------                                                                      -----------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                      GAAP                                                                                    Non-GAAP                                                                                    GAAP                                                                                            Non-GAAP
                                                                                                                                                           -------------------------                                                                 -------------------------                                                                 -------------------------                                                                 ----------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                          
                     Income from continuing operations before interest and income taxes (1)                                                                                   $   320                                                                                   $   410                                                                                   $   612                                                                                   $                  802
                     Interest expense, net                                                                                                                      14                                                                     14                                                                     29                                                                                    29
                                                                                                                                                           -------------------- -----                                                                -------------------- -----                                                                -------------------- -----                                                                -------------------- --------------------
                     Income from continuing operations before income taxes                                                                                                    $   306                                                                                   $   396                                                                                   $   583                                                                                   $                  773
                                                                                                                                                                                                                                                                                                                                                                                                                                          
                     Statutory tax rate                                                                                                                                           35%                                                                                       35%                                                                                       35%                                                                                                      35%
                                                                                                                                                                                                                                                                                                                                                                                                                                          
                     Tax at statutory rate                                                                                                                                    $   107                                                                                   $   139                                                                                   $   204                                                                                   $                  271
                     Adjustments for discrete and permanent items (2)                                                                                         (13)                                                                   (26)                                                                   (31)                                                                                  (50)
                                                                                                                                                           -------------------- -----                                                                -------------------- -----                                                                -------------------- -----                                                                -------------------- --------------------
                     Total tax expense                                                                                                                                        $    94                                                                                   $   113                                                                                   $   173                                                                                   $                  221
                                                                                                                                                                                                                                                                                                                                                                                                                                          
                     Effective tax rate (3)                                                                                                                                     30.7%                                                                                     28.5%                                                                                     29.7%                                                                                                    28.6%
                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                            Three Months Ended                                                                                                                                                                           Six Months Ended
                                                                                                                                                                                                            September 30, 2015                                                                                                                                                                          September 30, 2015
                                                                                                                                                           --------------------------------------------------------------------------------------------------------------                                                                      -----------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                      GAAP                                                                                    Non-GAAP                                                                                    GAAP                                                                                            Non-GAAP
                                                                                                                                                           -------------------------                                                                 -------------------------                                                                 -------------------------                                                                 ----------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                          
                     Income from continuing operations before interest and income taxes (1)                                                                                   $   259                                                                                   $   357                                                                                   $   563                                                                                   $                  762
                     Interest expense, net                                                                                                                      12                                                                     12                                                                     21                                                                                    21
                                                                                                                                                           -------------------- -----                                                                -------------------- -----                                                                -------------------- -----                                                                -------------------- --------------------
                     Income from continuing operations before income taxes                                                                                                    $   247                                                                                   $   345                                                                                   $   542                                                                                   $                  741
                                                                                                                                                                                                                                                                                                                                                                                                                                          
                     Statutory tax rate                                                                                                                                           35%                                                                                       35%                                                                                       35%                                                                                                      35%
                                                                                                                                                                                                                                                                                                                                                                                                                                          
                     Tax at statutory rate                                                                                                                                    $    86                                                                                   $   121                                                                                   $   190                                                                                   $                  259
                     Adjustments for discrete and permanent items (2)                                                                                         (11)                                                                   (23)                                                                   (27)                                                                                  (48)
                                                                                                                                                           -------------------- -----                                                                -------------------- -----                                                                -------------------- -----                                                                -------------------- --------------------
                     Total tax expense                                                                                                                                        $    75                                                                                   $    98                                                                                   $   163                                                                                   $                  211
                                                                                                                                                                                                                                                                                                                                                                                                                                          
                     Effective tax rate (3)                                                                                                                                     30.4%                                                                                     28.4%                                                                                     30.1%                                                                                                    28.5%
                                                                                                                                                                                                                                                                                                                                                                                                                                                               
(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.
                          
                         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                                                                                       $   1.88                                            to                                                               $       1.93
                                                                                                                                                                                                                                                                          
                     Non-GAAP adjustments:
                        Purchased software amortization                                                                                                                    0.37                                                                                                                     0.37
                        Other intangibles amortization                                                                                                                     0.03                                                                                                                     0.03
                        Internally developed software products amortization                                                                                                0.19                                                                                                                     0.19
                        Share-based compensation                                                                                                                           0.26                                                                                                                     0.26
                        Tax effect of non-GAAP adjustments                                                                                            (0.24)                                                                                                (0.24)
                                                                                                                                                    -------------------- ------                                                                                          -------------------- ----------
                     Total non-GAAP adjustment                                                                                                                         $   0.61                                                                                                             $       0.61
                                                                                                                                                    -------------------- ------                                                                                          -------------------- ----------
                                                                                                                                                                                                                                                                          
                     Projected non-GAAP diluted EPS from continuing operations range                                                                                   $   2.49                                            to                                                               $       2.54
                                                                                                                                                    ==================== ======                                                                                          ==================== ==========
                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                     Fiscal Year Ending
                     Projected Operating Margin                                                                                                                                                                        March 31, 2017
                     ---------------------------------------------------------------                                                                --------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                          
                     Projected GAAP operating margin                                                                                                                                                                       29%
                                                                                                                                                                                                                                                                          
                     Non-GAAP operating adjustments:
                        Purchased software amortization                                                                                                                                                                     4%
                        Other intangibles amortization                                                                                                                                                                      0%
                        Internally developed software products amortization                                                                                                                                                 2%
                        Share-based compensation                                                                                                                                                                            3%
                                                                                                                                                                                                                          ----
                     Total non-GAAP operating adjustment                                                                                                                                                                    9%
                                                                                                                                                                                                                          ----
                                                                                                                                                                                                                                                                          
                     Projected non-GAAP operating margin                                                                                                                                                                   38%
                                                                                                                                                                                                                          ====
Refer to the discussion of non-GAAP financial measures included in
the accompanying press release for additional information.
Certain non-material differences may arise versus actual from impact
of rounding.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20161027006825r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20161027006825/en/

SOURCE: CA Technologies

CA Technologies 
Darlan Monterisi, 646-826-6071 
Corporate Communications 
darlan.monterisi@ca.com 
or 
Jennifer DiClerico, 212-415-6997 
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


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2017 StockSelector.com. All rights reserved.