CA beats 2nd-quarter profit expectations despite a decline in revenue caused by currency

CA beats 2Q expectations despite currency moves

ISLANDIA, N.Y. — Software maker CA Inc. said Thursday its second-quarter net income rose 8 percent from a year ago but it scaled back its forecast for full-year revenue growth and its shares retreated in after-market trading.

CA’s second-quarter numbers beat Wall Street expectations despite a decline in revenue caused by currency movements.

Net income in the three months to Sept. 30 grew to $218 million, or 41 cents per share, from $202 million, or 39 cents per share, in the same quarter a year ago.

Excluding restructuring and certain amortization charges, the company said it earned an adjusted 42 cents per share.

Revenue fell 3 percent to $1.07 billion, down from $1.11 billion a year ago, but would have risen 1 percent if currency levels had been constant.

Analysts polled by Thomson Reuters were looking for earnings of 40 cents per share on revenue of $1.07 billion.

The company said it now expects revenue growth between 2 percent and 4 percent for fiscal 2010 from the previous year, rather than at the high end of that range as it previously predicted, if currency levels were constant.

That would translate into revenue of between $4.3 billion and $4.4 billion, it said. That level was unchanged from previously issued company guidance.

The company also predicted adjusted earnings per share between $1.60 and $1.71, tacking a penny onto the higher end of the range it previously forecast.

CA shares fell $1.56, or 6.5 percent, to $22.35 in after-hours trading following the release of the earnings report. They ended the regular session 2 percent higher at $23.91.

Chief Executive John Swainson said the company is seeing “some improvement in the economic climate, especially in North America,” giving the company confidence it will have a strong second half.

(This version CORRECTS analyst estimate to $1.07 billion sted million in 6th graf)