CA Technologies Issues FY19 Outlook; To Incur Charge For Restructuring Plan

(RTTNews) - CA Technologies (CA) announced, for fiscal 2019, non-GAAP earnings per share is expected to increase in a range of 6 percent to 8 percent as reported and 2 percent to 4 percent in constant currency. At March 31, 2018 exchange rates, this translates to reported non-GAAP earnings per share of $2.75 to $2.81. Total revenue is expected to change in a range of flat to plus 1 percent as reported and minus 1 percent to flat in constant currency. At March 31, 2018 exchange rates, this translates to reported revenue of $4.25 billion to $4.29 billion. Cash flow from operations to decrease in a range of 5 percent to 1 percent as reported and 7 percent to 3 percent in constant currency. At March 31, 2018 exchange rates, this translates to reported cash flow from operations of $1.14 billion to $1.18 billion.

On May 2, the company's Board approved a restructuring plan to better align its business priorities.The Fiscal 2019 Plan comprises the termination of approximately 800 employees and facility exits and consolidations. Under the Fiscal 2019 Plan, the company expects to incur a pre-tax charge between approximately $140 million and $160 million.

The company also said Adam Elster, its former President of Global Field Operations, is leaving CA. CA noted that interim leadership is in place pending an external search for Elster's replacement that is underway.

For the full year 2018, cash flow from operations was $1.198 billion, compared with $1.078 billion in the prior fiscal year.