CA Technologies Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2013; Revised Earnings Guidance for Full Year Ending March 31, 2014
For the nine months, the company reported net income of $807 million or $1.78 diluted income per share on total revenue of $3,431 million compared to net income of $713 million or $1.53 diluted income per share on total revenue of $3,492 million for the comparable period last year. Income before income taxes was $882 million against $1,055 million of prior year period. Non-GAAP income was $1,126 million or $2.48 Non-GAAP diluted EPS against Non-GAAP income of $856 million or $1.84 Non-GAAP diluted EPS of prior year period.
The company revised earnings guidance for the full year ending March 31, 2014. For the year, the company expects the following: Total revenue to decrease in a range of minus 2% to minus 1% in constant currency. Previous guidance was a decrease of minus 3% to minus 2%. At December 31, 2013 exchange rates, this translates to reported revenue of $4.52 billion to $4.57 billion; GAAP diluted earnings per share to range from minus 3% to 0% in constant currency. Previous guidance was a decrease of minus 7% to minus 4%. At December 31, 2013 exchange rates, this translates to reported GAAP diluted earnings per share of $2.01 to $2.08; Non-GAAP diluted earnings per share to increase in a range of 21% to 24% in constant currency. Previous guidance was an increase of 17% to 20%. At December 31, 2013 exchange rates, this translates to reported non-GAAP diluted earnings per share of $3.05 to $3.12; Cash flow from operations to decrease in a range of minus 30% to minus 24% in constant currency, unchanged from previous guidance. At December 31, 2013 exchange rates, this translates to reported cash flow from operations of $960 million to $1.04 billion. Outlook for cash flow from operations is being negatively affected by costs associated with the rebalancing of resources during the fiscal year, an increase in cash taxes, and an increase in operating cash outflows relating to product development and enhancements expenses for fiscal year 2014. The company expects a fiscal year 2014 GAAP and non-GAAP effective tax rate of approximately 14%.