CA Technologies posted better-than-expected third quarter financial results Tuesday but saw its net income slide to a loss due to a repatriation tax related to recent US tax reform.
The company reported a third quarter net loss of $93 million, or 23 cents a share, compared to a net income of $208 million, or 50 cents a share, a year earlier. Non-GAAP earnings for the third quarter were 75 cents a share on revenue of $1.09 billion, up nine percent from last year.
Wall Street was expecting earnings of 60 cents a share on second quarter revenue of $1.07 billion.
CA said the revenue increase was due to a rise in software fees and other revenue. However, the company's total bookings decreased because of a decline in renewals. The company said it closed 13 license agreements in Q3 with values in excess of $10 million each.
As for the outlook, CA Technologies expects fiscal 2018 earnings from $2.54 to $2.60 a share with revenue between $4.22 billion to $4.25 billion. Analysts are looking for 2018 earnings of $2.45 a share on revenue of $4.22 billion.
Chief executive Mike Gregoire highlighted the company's slate of new product offerings and accelerated revenue growth as keys to providing positive momentum going forward.
"I am confident with the strategic direction of the company and believe that we are on track to achieve long-term sustainable growth," he said.