Sales were bolstered by CA’s acquisition of privately held web application management vendor Wily technologies in January 2006. The company also looks like it is finally experiencing the benefits of John Swainson’s new management, after the 2004 accounting scandal that lead to Sanjay Kumar’s resignation and arrest.
Donna Scott, Gartner analyst, said although CA’s financial growth has been “moderate,” it is “positive” because it shows Swainson has risen to the large task of turning the company culture around, and making it more customer and technology focussed. Swainson is now enjoying the “fruits of his labour,” Scott said.
Swainson said the four CA products that had performed particularly well were the security products, network management solutions, the Wily family of application performance management products and the Clarity products for budget and portfolio management. These “extremely well” performing products had “helped drag a lot of the rest of the portfolio with them,” Swainson said.
Contributing to CA’s increased revenue was the increase it has experienced in product and service bookings. CA’s total bookings have increased by 46 percent from the comparable prior year period, driven primarily from the large number of contracts being renewed in the quarter, and the increased contract length, said the CA report.
CA’s reductions in costs have also contributed to the positive financial results. Total expenses have decreased by nine percent, or eleven percent in constant currency, from US$907 million in the prior year period to US$823 million.
