CA Technologies today said its third quarter revenue in fiscal 2015 dipped 3 percent to $1.091 billion, while profit dropped 3 percent to $218 million.
Q3 revenue declined primarily as a result of a decrease in subscription and maintenance revenue. There was an unfavorable foreign exchange effect of $28 million during the third quarter of fiscal 2015.
Mike Gregoire, chief executive officer, CA Technologies, said: “Although we saw a decline in third quarter sales, we are on track for the full year.”
“Looking ahead, while we do not expect fiscal 2016 total revenue to grow in constant currency, we believe we are on track to achieving our medium-term goals,” Gregoire said.
CA Technologies said its third quarter total bookings were negatively affected by a dip in renewals due to the timing of the renewal portfolio within subscription and maintenance bookings. This timing reflects the lower value of contracts generally available for renewal.
In addition, there was a tough comparison from a four-year contract renewal with a large systems integrator for more than $300 million in the year-ago period.
CA Technologies executed 18 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $394 million. During the third quarter of fiscal 2014, the company executed a total of 17 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $874 million.