Shares of Business software firm CA Inc. (NYSE: CA) fell more than 7 percent, a day after reporting a smaller fourth quarter loss, but also warning that its financial forecast for fiscal 2008 would be lower than Wall Street estimates.
CA said it narrowed its fourth quarter losses on Wednesday as a result of restructuring and strong performance in all of its business areas.
Net income for the fiscal period ended March 31 was $20 million, or 4 cents per share, from a net loss of $41 million, or 7 cents per share, a year ago. Sales rose 6.7 percent to $1 billion in the period ended March 31.
Analysts expected CA to report earnings of 20 cents per share on $1.01 billion in revenue, according to a poll by Thomson Financial.
North American revenue was up 6 percent in the quarter, but international operations were down 2 percent, it said.
For the full year, revenue increased to $3.943 billion, up 5 percent, compared to the $3.772 billion reported in fiscal year 2006. Strong subscription growth and professional services revenue helped the figures.
For fiscal year 2008, CA expects sales of $4.05 billion to $4.1 billion, producing a net profit of 75 cents to 79 cents a share. Excluding certain items, it expects profit of 94 to 98 cents per share.
Analysts, on average had expected sales of $4.12 billion and a profit of $1.04 per share.
Shares dropped $2.08, or $7.47 percent, to $25.76 in Thursday afternoon trading on the Nasdaq Stock Market.
As a result of the hard work of all CA employees, we are now a stronger company and are moving forward with a sense of vigor and enthusiasm to becoming one of the world's most successful software companies,â€ said John Swainson, CA president and CEO.