Last updated: October 28, 2016
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Enterprise software and SaaS increase sales
CA Technologies' Q2 total revenue increased as a result of an increase in software fees and other revenue, partially offset by decreases in professional services revenue and subscription and maintenance revenue. Q2 revenue was up 1% to $1.018 bn; GAAP income from continuing operations rose to $212m – a rise of 23%. The increase in software fees and other revenue was primarily due to an increase in sales of enterprise solutions products recognized on an upfront basis and an increase in SaaS revenue, primarily from CA Agile Central products (acquired from Rally Software Development.
Total bookings decreased primarily due to a renewal with a large system integrator in excess of $500m that occurred during the second quarter of fiscal 2016 and, to a lesser extent, a decrease in mainframe renewals. International sales remain at around one third of the total.
Mike Gregoire, CA Technologies Chief Executive Officer, said: “CA delivered solid second quarter results. We reported another quarter of revenue growth with strong margins and earnings, and we are making progress across a number of our key initiatives. Our product development and innovation engines are beginning to gain momentum, and we’re pleased with our improving customer experience metrics. At the same time, we recognize we still have work ahead of us. We continue to manage the business with thoughtful discipline, and I remain confident that we are moving the company in the right direction."