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CA Technologies Outlines Business Strategy, Presents Multi-Year Outlook to Investors


• CEO McCracken Maintains Management is Key to Enabling Era of Composite Business Services

• Reaffirms Outlook for Fiscal Year 2012

ISLANDIA, N.Y., July 29,  2011 – CA Technologies (NASDAQ: CA) Chief Executive Officer Bill McCracken and members of his senior management team are presenting the Company’s market and technology strategy, and multi-year financial outlook during its 2011 Investor Day being held today in New York City.

At the session attended by more than 140 buy-side and sell-side analysts, McCracken and CA Technologies senior managers are discussing the Company strategy to leverage its leadership in mainframe and enterprise management solutions, and to build its capabilities in the hybrid cloud management, Software as a Service (SaaS) and Service Providers markets.  They are also discussing how the Company will accelerate adoption of its solutions by customers in new and emerging markets.

Era of Composite Business Services

In opening the session, McCracken maintained that the industry is experiencing a convergence of several key technologies and trends - mobile devices, increased bandwidth, mobile applications, corporate adoption of social media and location-based computing - that are radically changing the computing landscape. 

“These trends and technologies are rapidly expanding the boundaries of composite business services that leading companies will come to rely on to sell products and services, interact with customers in real time, and gather and share data,” McCracken said.

The IT industry, he said, is leveraging cloud computing to enable organizations to source the best components—internal, external, private cloud, public cloud, mobile and more—to construct the most competitive business applications in days rather than months.

McCracken told investors that CA Technologies is focused on providing the management and security software required by companies to take full advantage of this evolution.

“With the adoption of Composite Business Services, the applications, which may be sourced from multiple vendors, are becoming commoditized and the ability to quickly assemble the business service in a managed and secure way is becoming the business value. This industry shift will require, more than ever, what CA Technologies has done successfully for 35 years: manage and secure the most complex IT environments,” he said.

Outlook

The Company’s three-year financial outlook beginning in fiscal year 2013 was disclosed including:

• Organic revenue growth in constant currency in mid-single digits;
• Non-GAAP operating margin expanding 1 point  per year;
• Non-GAAP diluted earnings per share growth in constant currency in low double digits (CAGR);
• Cash flow from operations growth in constant currency in the high single digits (CAGR);
• A non-GAAP tax rate of between 28 percent to 30 percent; and,
• Share repurchases and dividends of 40 percent to 50 percent of free cash flow.

The Company also reaffirmed its fiscal year 2012 outlook issued on July 20, 2011.

“Our three-year outlook represents our strategic, balanced approach to capital allocation to meet our goal of increasing shareholder value,” said Richard Beckert, CA Technologies chief financial officer.  “We will make investments to grow—both organically and through acquisitions—especially in the areas of hybrid cloud management, SaaS and MSPs, while increasing operating efficiency to further invest in growth areas and drive operating margin expansion. We also are committed to returning cash to shareholders through share repurchases and dividends.”

Joining McCracken and Beckert at the event are David Dobson, executive vice president and group executive, Customer Solutions Group; George Fischer, executive vice president and group executive, Worldwide Sales and Operations; Dayton Semerjian, general manager, Mainframe Customer Solutions Unit; Michael Sargent, general manager, Service Assurance Customer Solutions Unit; and Christopher O’Malley, Nimsoft CEO and general manager, Growth Markets Customer Solutions Unit.

Webcast

The session is being webcast live starting at 8:30 a.m. ET on July 29, 2011 and will run until 1:00 p.m. ET. Related supplemental materials are available at http://investor.ca.com. A replay of the audio webcast will be available at approximately 2:30 p.m. ET at http://investor.ca.com.

Press Contacts


ABOUT CA TECHNOLOGIES

CA Technologies (NASDAQ: CA) provides IT management solutions that help customers manage and secure complex IT environments to support agile business services. Organizations leverage CA Technologies software and SaaS solutions to accelerate innovation, transform infrastructure and secure data and identities, from the data center to the cloud. Learn more about CA Technologies at www.ca.com.

LEGAL NOTICES

Copyright © 2011 CA, Inc. All Rights Reserved. All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.

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