CA Technologies on Thursday reported second quarter fiscal 2014 earnings of $0.86 on revenue of $1.14 billion, easily topping estimates of earnings of $0.73 per share on revenues of $1.10 billion.
The software company was so pleased with its performance that it raised its full-year guidance for revenue (now between $4.47 billion and $4.52 billion) and earnings per share (now between $2.96 and $3.03 in non-GAAP terms).
The company's stock was up 3 percent in after-hours trading.
"To drive growth at CA we are investing in our business," chief executive Mike Gregoire said. "In the second half of the fiscal year we will increase our research and development spend and accelerate our investment in marketing."
The company recorded an uptick in second quarter bookings, primarily thanks to higher mainframe renewals. That growth was offset by a decrease in Mainframe and Enterprise Solutions new product sales and Services engagements. In the second quarter, CA executed 10 license agreements worth $232 million.
The company was also able to reduce operating expenses through lower personnel costs within selling and marketing and a decrease in commissions.
CA ended the quarter with $2.799 billion in cash and equivalents on hand and $1.779 billion in debt.