CA Technologies
May 13, 2010

CA Reports Fourth Quarter and Full Fiscal Year 2010 Results

ISLANDIA, N.Y., May 13, 2010 /PRNewswire via COMTEX News Network/ --

CA, Inc. (Nasdaq: CA) today reported financial results for its fourth quarter and full fiscal year 2010, ended March 31, 2010.



    Financial Overview

                                      Fourth Quarter FY10 vs. FY09
                                      ----------------------------
    (in millions, except
     share data)                   FY10      FY09        %        %
    --------------------           ----      ----     Change   Change
                                                      ------     CC**
                                                               ------
    Revenue                        $1,103   $1,035        7%       3%
    -------                        ------   ------      ---      ---
    GAAP Net Income                  $101      $65       55%      63%
    ---------------                  ----      ---      ---      ---
    Non-GAAP Net Income*             $175     $169        4%       8%
    --------------------             ----     ----      ---      ---
    GAAP Diluted EPS                $0.19    $0.13       46%      54%
    ----------------                -----    -----      ---      ---
    Non-GAAP  Diluted EPS*          $0.34    $0.31       10%      13%
    ----------------------          -----    -----      ---      ---
    Cash Flow from
     Operations                      $636     $648       -2%      -4%
    --------------                   ----     ----      ---      ---


                                        Full Year FY10 vs. FY09
                                        -----------------------
    (in millions, except
     share data)                   FY10     FY09        %        %
    --------------------           ----     ----     Change   Change
                                                     ------     CC**
                                                              ------
    Revenue                       $4,353   $4,271        2%       3%
    -------                       ------   ------      ---      ---
    GAAP Net Income                 $771     $671       15%      19%
    ---------------                 ----     ----      ---      ---
    Non-GAAP Net Income*            $869     $835        4%       7%
    --------------------            ----     ----      ---      ---
    GAAP Diluted EPS               $1.47    $1.29       14%      19%
    ----------------               -----    -----      ---      ---
    Non-GAAP  Diluted EPS*         $1.62    $1.54        5%       8%
    ----------------------         -----    -----      ---      ---
    Cash Flow from
     Operations                   $1,360   $1,212       12%      19%
    --------------                ------   ------      ---      ---

    *  Non-GAAP income and earnings per share are non-GAAP financial
       measures, as noted in the discussion of non-GAAP results below. A
       reconciliation of non-GAAP financial measures to their comparable
       GAAP financial measures is included in the tables following this
       news release.
    ** CC: Constant Currency


"I am very pleased with the way we executed throughout our 2010 fiscal year," said Chief Executive Officer Bill McCracken. "We grew revenue, increased profit and generated significant levels of cash. We accomplished all of this while increasing investment in growth and the future of CA, both through internal research and development and through acquisitions. These investments put us on a course for leadership in the key markets that underlie our growth strategy--identity and access management, IT management as a service, virtualization management and cloud computing--as we continue to maintain our market-leading mainframe business."

"Last month, we announced a restructuring to not only reposition our Company to pursue our growth strategy, including cloud computing and virtualization management, but also to improve our operational capabilities," McCracken continued. "This restructuring allows us to rebalance our skills, bring on new talent, expand distribution channels and reach new customers, while maintaining profitability under our business model."

REVENUE AND BOOKINGS

Fourth Quarter

The Company reported another quarter of record new product sales in Identity and Access Management, with particular momentum in CA SiteMinder and CA Access Control. New product sales in Service Management and Assurance grew double-digits year-over-year, led by CA eHealth and CA Spectrum Infrastructure Manager. The Company also saw an upturn in demand for its services and education offerings.

North America revenue was $670 million, up 6 percent in constant currency and 7 percent as reported year-over-year, while international revenue was $433 million, down 3 percent in constant currency and up 6 percent as reported year-over-year.

The Company signed 21 license agreements with aggregate values greater than $10 million for a total of $632 million, compared with 20 license agreements totaling $736 million in the fourth quarter of fiscal year 2009. The weighted average duration of subscription and maintenance bookings for the quarter was 3.5 years, compared with 3.6 years for the same period in fiscal year 2009.

Total bookings in the fourth quarter were $1.448 billion, down 4 percent in constant currency and 1 percent as reported, compared to the prior year period. North America bookings were $879 million, up 4 percent in constant currency and 6 percent as reported, while international bookings were $569 million, down 15 percent in constant currency and 10 percent as reported compared to the prior year period.

Full Year

North America revenue was $2.583 billion, up 6 percent in constant currency and as reported compared to fiscal year 2009. International revenue was $1.770 billion, down 2 percent in constant currency and 3 percent as reported compared to fiscal year 2009.

The Company renewed a total of 68 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $2.146 billion. During fiscal 2009, the Company renewed a total of 68 license agreements with incremental contract values in excess of $10 million each, for an aggregate contract value of $2.471 billion, including a single multi-year contract renewal with a system integrator for more than $400 million booked in North America in the second quarter. The weighted average duration of subscription and maintenance bookings for the full fiscal year was 3.5 years, compared to 3.6 years for the previous fiscal year.

Total bookings were $4.964 billion, down 6 percent in constant currency and 5 percent as reported. North America bookings were $2.969 billion, down 11 percent in constant currency and as reported. Fiscal year 2010 bookings comparisons were unfavorably affected by the aforementioned large renewal booked in the prior fiscal year. International bookings were $1.995 billion, up 1 percent in constant currency and 4 percent as reported.

Revenue Backlog

Total revenue backlog was $8.210 billion, up 8 percent in constant currency and up 11 percent as reported over the prior year period. Revenue backlog was up both in terms of revenue to be recognized over the next 12 months and revenue to be recognized beyond 12 months.

EXPENSES AND MARGIN

During the fourth quarter, the Company announced a restructuring program and took a charge of approximately $50 million to cover severance costs and other expenses including consolidation of facilities. The charge had an unfavorable impact of 5 percentage points on the Company's GAAP and non-GAAP operating margins in the quarter and $0.06 on GAAP and non-GAAP earnings per share. For the full year, the program had an unfavorable impact of 1 percentage point on GAAP and non-GAAP operating margins and $0.06 on GAAP and non-GAAP earnings per share.

Fourth Quarter

Total GAAP expenses, before interest and income taxes, were $871 million, down 3 percent in constant currency and up 2 percent as reported from the prior year. GAAP operating income, before interest and income taxes, was $232 million, up 33 percent in constant currency and 29 percent as reported. The Company recorded a GAAP operating margin of 21 percent, up 4 percentage points from the prior year period.

On a non-GAAP basis, which excludes purchased software and intangibles amortization, pre-fiscal year 2010 restructuring costs and other costs, and includes gains and losses on hedges that mature within the quarter, but excludes gains and losses on hedges that do not mature within the quarter, the Company reported operating expenses of $846 million, up 9 percent in constant currency and up 17 percent as reported year-over-year. Non-GAAP operating income, before interest and income taxes, was $257 million, down 14 percent in constant currency and down 18 percent as reported. The Company recorded a non-GAAP operating margin of 23 percent, a decrease of 7 percentage points from the fourth quarter of fiscal year 2009.

In the fourth quarter, the Company recorded a GAAP tax rate of 54 percent and a non-GAAP tax rate of 28 percent.

Full Year

For the full fiscal year, total GAAP expenses before interest and income taxes were $3.106 billion, down 1 percent in constant currency and as reported. GAAP operating income before interest and income taxes was $1.247 billion, up 14 percent in constant currency and 11 percent as reported. The Company recorded a GAAP operating margin of 29 percent, a 3 percentage point improvement from the prior full fiscal year.

The Company reported non-GAAP operating expenses for fiscal year 2010 of $2.993 billion, up 2 percent in constant currency and as reported compared to the full year of fiscal year 2009. Non-GAAP operating income was $1.360 billion, up 5 percent in constant currency and up 2 percent as reported. The Company recorded a non-GAAP operating margin of 31 percent, flat from fiscal year 2009.

For the full year, the Company recorded GAAP and non-GAAP tax rates of 34 percent.

CAPITAL STRUCTURE

The balance of cash and cash equivalents at March 31, 2010, was $2.583 billion. With $1.545 billion in total debt outstanding, the Company has a net cash position of $1.038 billion. During the quarter, the Company acquired Nimsoft, Inc. for approximately $350 million in an all-cash transaction.

In the fourth quarter, the Company repurchased approximately 5.9 million shares of stock for a total of $137 million. For the year, the Company purchased a total of approximately 10 million shares for $227 million. In April 2010, the Company repurchased approximately 800,000 shares, which completed the share repurchase authorization of $250 million announced in October of 2008.

The Company also announced that its Board of Directors has approved a new stock repurchase program of up to $500 million (see separate news release).

CHRISTENSON TO LEAVE CA

The Company announced that Michael Christenson, president and chief operating officer, will leave CA effective May 31, 2010. Christenson joined CA in 2005 and became COO in 2006. He was named president in 2008. The Company indicated it will not replace Christenson.

"Mike leaves the Company on solid operational footing--with many of his accomplishments over the last 5 years having become the fabric of how we run our business today," McCracken said. "On behalf of the CA team and the Board of Directors, I would like to thank Mike for his contributions to CA and wish him well."

BUSINESS HIGHLIGHTS

OUTLOOK FOR FISCAL YEAR 2011

The Company provided its outlook for fiscal year 2011. Beginning in the first quarter of fiscal year 2011 the Company will exclude stock-based compensation expense from its non-GAAP financial measures. The following guidance, which represents "forward-looking statements" (as defined below), takes into account the exclusion of stock-based compensation expense from future non-GAAP results. To enable fiscal year 2011 guidance for non-GAAP earnings per share to be compared to fiscal year 2010 full year results, the Company provides full fiscal year 2010 results for non-GAAP earnings per share excluding stock-based compensation expense below.

The Company expects the following:

This outlook also assumes no material acquisitions and a partial currency hedge of operating income. The Company also expects a full-year GAAP and non-GAAP tax rate in a range of 33 to 34 percent.

The Company anticipates approximately 513 million shares outstanding at fiscal year 2011 year-end and a weighted average diluted shares outstanding of approximately 514 million for the fiscal year. Guidance does not include the impact from any future stock repurchases.

"Our outlook reflects investments made to position CA as a market leader and accelerating growth in our key product areas," McCracken said. "We feel confident about our strategic direction and expect to see momentum building the further we go into the fiscal year."

Webcast

This news release and the accompanying tables should be read in conjunction with additional content that is available on the Company's website, including a supplemental financial package, as well as a webcast that the Company will host at 5 p.m. ET today to discuss its unaudited fourth quarter results. The webcast will be archived on the website. Individuals can access the webcast, as well as this press release and supplemental financial information, at http://ca.com/invest or listen to the call at 1-877-675-4750. The international participant number is 1-719-325-4758.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090402/NYTH500LOGO)

About CA

CA (Nasdaq: CA) is an IT management software and solutions company with expertise across all IT environments--from mainframe and physical, to virtual and cloud. CA manages and secures IT environments and enables customers to deliver more flexible IT services. CA's innovative products and services provide the insight and control essential for IT organizations to power business agility. The majority of the Global Fortune 500 relies on CA to manage their evolving IT ecosystems. For additional information, visit CA at www.ca.com. Follow CA on Twitter at www.twitter.com/cainc.

Connect with CA

Non-GAAP Financial Measures

This news release, the accompanying tables and the additional content that is available on the Company's website, including a supplemental financial package, includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP). Non-GAAP metrics for operating expenses, operating income, operating margin, income from operations and diluted earnings per share exclude the following items: non-cash amortization of purchased software and other intangibles, pre-fiscal year 2010 restructuring and other charges and include the gains and losses since inception of hedges that mature within the quarter, but exclude gains and losses of hedges that do not mature within the quarter. Non-GAAP income also excludes the interest on convertible bonds. The effective tax rate on GAAP and non-GAAP income from operations is the Company's provision for income taxes expressed as a percentage of pre-tax GAAP and non-GAAP income from operations, respectively. Such tax rates are determined based on an estimated effective full year tax rate, with the effective tax rate for GAAP generally including the impact of discrete items in the period such items arise and the effective tax rate for non-GAAP income generally allocating the impact of discrete items pro rata to the fiscal year's remaining reporting periods. Non-GAAP adjusted cash flow excludes restructuring and other payments. Free cash flow excludes capital expenditures. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than US dollars are converted into US dollars at the exchange rate in effect on March 31, 2009, which was the last day of our prior fiscal year. Constant currency excludes the impacts from the Company's hedging program. The constant currency calculation for annualized subscription and maintenance bookings is calculated by dividing the subscription and maintenance bookings in constant currency by the weighted average subscription and maintenance duration in years. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, non-GAAP financial measures facilitate management's internal comparisons to the Company's historical operating results and cash flows, to competitors' operating results and cash flows, and to estimates made by securities analysts. Management uses these non-GAAP financial measures internally to evaluate its performance and they are key variables in determining management incentive compensation. The Company believes these non-GAAP financial measures are useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, the Company has historically reported similar non-GAAP financial measures to its investors and believes that the inclusion of comparative numbers provides consistency in its financial reporting. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures, which are attached to this news release.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this communication (such as statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) constitute "forward-looking statements" that are based upon the beliefs of, and assumptions made by, the Company's management, as well as information currently available to management. These forward-looking statements reflect the Company's current views with respect to future events and are subject to certain risks, uncertainties, and assumptions. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the ability to achieve success in the Company's strategy by, among other things, increasing sales in new and emerging enterprises and markets, enabling the sales force to sell new products and Software-as-a-Service offerings and improving the Company's brand in the marketplace; global economic factors or political events beyond the Company's control; general economic conditions, including concerns regarding a global recession and credit constraints, or unfavorable economic conditions in a particular region, industry or business sector; failure to expand channel partner programs; the ability to adequately manage and evolve financial reporting and managerial systems and processes; the ability to successfully acquire technology and software that are consistent with our strategy and integrate acquired companies and products into existing businesses; competition in product and service offerings and pricing; the ability to retain and attract qualified key personnel; the ability to adapt to rapid technological and market changes; the ability of the Company's products to remain compatible with ever-changing operating environments; access to software licensed from third parties, third-party code and specifications for the development of code; use of software from open source code sources; discovery of errors in the Company's software and potential product liability claims; significant amounts of debt and possible future credit rating changes; the failure to protect the Company's intellectual property rights and source code; fluctuations in the number, terms and duration of our license agreements as well as the timing of orders from customers and channel partners; reliance upon large transactions with customers; risks associated with sales to government customers; breaches of the Company's software products and the Company's and customers' data centers and IT environments; access to third-party microcode; third-party claims of intellectual property infringement or royalty payments; fluctuations in foreign currencies; failure to successfully execute restructuring plans; successful outsourcing of various functions to third parties; potential tax liabilities; and these factors and the other factors described more fully in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

Copyright © 2010 CA, Inc. All Rights Reserved. One CA Plaza, Islandia, N.Y. 11749. All other trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.



    Contacts:    Dan Kaferle                  Carol Lu
                 Public Relations             Investor Relations
                 (631) 342-2111               (212) 415-6920
                 daniel.kaferle@ca.com        carol.lu@ca.com


                                    Table 1
                                   CA, Inc.
                Condensed Consolidated Statements of Operations
                    (in millions, except per share amounts)
                                  (unaudited)


                                     Three Months Ended     Fiscal Year Ended
                                         March 31,              March 31,
                                         ---------              ---------
     Revenue                          2010      2009 (1)    2010         2009
                                      ----      -------     ----         ----
     Subscription and maintenance
      revenue                         $968          $913  $3,887       $3,772
     Professional services              76            84     292          358
     Software fees and other            59            38     174          141
     Total revenue                   1,103         1,035   4,353        4,271
                                     -----         -----   -----        -----
     Expenses
     Costs of licensing and
      maintenance                       86            73     298          298
     Cost of professional services      68            68     261          307
     Amortization of capitalized
      software costs                    38            34     140          125
     Selling and marketing             342           299   1,225        1,214
     General and administrative        120           122     479          464
     Product development and
      enhancements                     123           128     476          486
     Depreciation and amortization
      of other intangible assets        43            40     161          149
     Other expenses (gains), net         3            (5)     14           (1)
     Restructuring and other            48            96      52          102
     Total expenses before interest
      and income taxes                 871           855   3,106        3,144
                                       ---           ---   -----        -----
     Income before interest and
      income taxes                     232           180   1,247        1,127
     Interest expense, net              14            22      76           62
                                       ---           ---     ---          ---
     Income before income taxes        218           158   1,171        1,065
     Income tax expense                117            93     400          394
     NET INCOME                       $101           $65    $771         $671
                                      ====           ===    ====         ====

     Basic income per common share
      (1)                            $0.20         $0.13   $1.48        $1.29
     Basic weighted average shares
      used in computation (1)          512           514     515          513
     Diluted income per common share
      (1)                            $0.19         $0.13   $1.47        $1.29
     Diluted weighted average shares
      used in computation (1)          514           538     533          537




    (1)  Certain balances and the calculations of income per common share
    and weighted average shares of common stock have been revised to
    reflect the retrospective adoption of recent accounting
    pronouncements. For further information refer to the Form 8-K filed
    on November 9, 2009.

                                   Table 2
                                  CA, Inc.
                    Condensed Consolidated Balance Sheets
                                (in millions)
                                 (unaudited)


                                                    March 31,  March 31,
                                                         2010   2009 (1)
                                                         ----   -------

     Cash and cash equivalents                         $2,583     $2,712
     Trade and installment accounts receivable, net       931        839
     Deferred income taxes - current                      360        513
     Other current assets                                 116         85
                                                          ---        ---

     Total current assets                               3,990      4,149
     Installment accounts receivable, due after one
      year, net                                            46        128
     Property and equipment, net                          452        442
     Goodwill                                           5,667      5,364
     Capitalized software and other intangible
      assets, net                                       1,150        725
     Deferred income taxes - noncurrent                   355        268
     Other noncurrent assets, net                         178        165
                                                          ---        ---

     Total assets                                     $11,838    $11,241
                                                      =======    =======

     Current portion of long-term debt and loans
      payable                                             $15       $621
     Deferred revenue (billed or collected) -
      current                                           2,555      2,406
     Deferred income taxes - current                       51         40
     Other current liabilities                            967        935
                                                          ---        ---

     Total current liabilities                          3,588      4,002

     Long-term debt, net of current portion             1,530      1,287
     Deferred income taxes - noncurrent                   134        136
     Deferred revenue (billed or collected) -
      noncurrent                                        1,068      1,025
     Other noncurrent liabilities                         535        429
                                                          ---        ---

     Total liabilities                                  6,855      6,879
                                                        -----      -----

     Common stock                                          59         59
     Additional paid-in capital                         3,657      3,686
     Retained earnings                                  3,361      2,673
     Accumulated other comprehensive loss                (130)      (183)
     Treasury stock                                    (1,964)    (1,873)
                                                       ------     ------

     Total stockholders' equity                         4,983      4,362
                                                        -----      -----

     Total liabilities and stockholders' equity       $11,838    $11,241
                                                      =======    =======




    (1)  Certain balances have been revised to reflect the retrospective
    adoption of recent accounting pronouncements. For further
    information refer to the Form 8-K filed on November 9, 2009.


                                   Table 3
                                  CA, Inc.
               Condensed Consolidated Statements of Cash Flows
                                (in millions)
                                 (unaudited)

                                 Three Months Ended        Fiscal Year Ended
                                      March 31,                March 31,
                                      ---------                ---------
                                 2010       2009 (1)       2010        2009
                                 ----       -------        ----        ----
     OPERATING ACTIVITIES:
       Net income                $101           $65        $771        $671
       Adjustments to
        reconcile net
        income to net cash
        provided by
        operating
        activities:
          Depreciation and
           amortization            81            74         301         274
          Provision for
           deferred income
           taxes                   16          (111)         68         (56)
          Provision for bad
           debts                    3             5           6          15
          Share based
           compensation
           expense                 27            24         102          92
          Amortization of
           discount on
           convertible debt         -            11          29          37
          Asset impairments
           and other non-cash
           charges                 10             4          13           2
          Foreign currency
           transaction (gains)
           losses - before
           taxes                   (7)            5         (10)         67
       Changes in other
        operating assets
        and liabilities,
        net of effect of
        acquisitions:
          (Increase) decrease
           in trade and
           installment
           accounts
           receivable, net         (4)           24           9         199
          Increase (decrease)
           in deferred revenue    360           365          94         (49)
          (Decrease) increase
           in taxes payable,
           net                    (30)           28         (16)         35
          Increase (decrease)
           in accounts
           payable, accrued
           expenses and other      18             2         (21)        (75)
          Increase (decrease)
           in accrued
           salaries, wages and
           commissions             27            32          25         (29)
          Increase (decrease)
           in restructuring
           liabilities             28            66         (12)        (13)
          Changes in other
           operating assets
           and liabilities          6            54           1          42

     NET CASH PROVIDED BY
      OPERATING ACTIVITIES        636           648       1,360       1,212
                                  ---           ---       -----       -----
     INVESTING ACTIVITIES:
       Acquisitions,
        primarily
        businesses, net of
        cash acquired, and
        purchased software       (414)          (22)       (617)        (76)
       Purchases of
        property and
        equipment                 (22)          (19)        (79)        (83)
       Proceeds from sale
        and divestiture of
        assets                      -             -           -           6
       Capitalized software
        development costs         (55)          (27)       (188)       (129)
       Other investing
        activities                 (1)           (3)         (4)         (2)
     NET CASH USED IN
      INVESTING ACTIVITIES       (492)          (71)       (888)       (284)
                                 ----           ---        ----        ----
     FINANCING ACTIVITIES:
       Dividends paid             (20)          (21)        (83)        (83)
       Purchases of common
        stock                    (137)            -        (227)         (4)
       Debt borrowings              -             1         744           1
       Debt repayments             (2)         (179)     (1,205)       (680)
       Debt issuance costs          -             -          (6)          -
       Proceeds from call
        spread option               6             -          61           -
       Exercise of common
        stock options and
        other                       5             -          11           7
     NET CASH USED IN
      FINANCING ACTIVITIES       (148)         (199)       (705)       (759)
                                 ----          ----        ----        ----
     (DECREASE) INCREASE
      IN CASH AND CASH
      EQUIVALENTS BEFORE
      EFFECT OF EXCHANGE
      RATE CHANGES ON CASH         (4)          378        (233)        169
     Effect of exchange
      rate changes on cash        (37)          (35)        104        (252)
                                  ---           ---         ---        ----
     (DECREASE) INCREASE
      IN CASH AND CASH
      EQUIVALENTS                 (41)          343        (129)        (83)
     CASH AND CASH
      EQUIVALENTS AT
      BEGINNING OF PERIOD       2,624         2,369       2,712       2,795
                                -----         -----       -----       -----
     CASH AND CASH
      EQUIVALENTS AT END
      OF PERIOD                $2,583        $2,712      $2,583      $2,712
                               ======        ======      ======      ======

    (1)  Certain balances have been revised to reflect the retrospective
         adoption of recent accounting pronouncements. For further
         information refer to the Form 8-K filed on November 9, 2009.


                                             Table 4
                                            CA, Inc.
                                    Constant Currency Summary
                                          (in millions)
                                           (unaudited)

                                    Three Months Ended March 31,
                          -----------------------------------------------
                            2010       2009           %            %
                            ----       ----        Increase     Increase
                                                  (Decrease)  (Decrease)
                                                   in $ US    in Constant
                                                              Currency (1)
                                                   -------    -----------

     Bookings             $1,448     $1,465          (1%)         (4%)

     Revenue:
        North America       $670       $625           7%           6%
        International        433        410           6%          (3%)
                             ---        ---         ---         ----
        Total revenue     $1,103     $1,035           7%           3%

     Revenue:
        Subscription and
         maintenance        $968       $913           6%           2%
        Professional
         services             76         84         (10%)        (13%)
        Software fees and
         other                59         38          55%          50%
                             ---        ---         ---          ---
        Total revenue     $1,103     $1,035           7%           3%

     Total expenses
      before interest
      and income taxes:
        Total Non-GAAP
         (2)                $846       $721          17%           9%
        Total GAAP          $871       $855           2%         (3%)


                                     Fiscal Year Ended March 31,
                          -----------------------------------------------
                            2010       2009           %            %
                            ----       ----       Increase     Increase
                                                  (Decrease)  (Decrease)
                                                   in $ US    in Constant
                                                              Currency (1)
                                                   -------    -----------

     Bookings             $4,964     $5,245          (5%)         (6%)

     Revenue:
        North America     $2,583     $2,444           6%           6%
        International      1,770      1,827          (3%)         (2%)
                           -----      -----        ----         ----
        Total revenue     $4,353     $4,271           2%           3%

     Revenue:
        Subscription and
         maintenance      $3,887     $3,772           3%           4%
        Professional
         services            292        358        (18%)        (18%)
        Software fees and
         other               174        141          23%          21%
                             ---        ---         ---          ---
        Total revenue     $4,353     $4,271           2%           3%

     Total expenses
      before interest
      and income taxes:
        Total Non-GAAP
         (2)              $2,993     $2,932           2%           2%
        Total GAAP        $3,106     $3,144          (1%)         (1%)


    (1)  Constant currency information is presented to provide a
         framework to assess how the underlying businesses performed
         excluding the effect of foreign currency rate fluctuations.  To
         present this information, current and comparative prior period
         results for entities reporting in currencies other than US dollars
         are converted into US dollars at the exchange rate in effect on
         March 31, 2009, which was the last day of fiscal year 2009.
         Constant currency excludes the impacts from the Company's hedging
         program.
    (2)  Refer to Table 6 for a reconciliation of total expenses before
         interest and income taxes on a GAAP basis to total expenses before
         interest and income taxes on a non-GAAP basis.

                                     Table 5
                                    CA, Inc.
              Reconciliation of GAAP Results to Non-GAAP Net Income
                     (in millions, except per share amounts)
                                   (unaudited)


                                   Three Months Ended     Fiscal Year Ended
                                       March 31,              March 31,
                                       ---------              ---------
                                    2010         2009    2010         2009
                                    ----         ----    ----         ----

     Total revenue                $1,103       $1,035  $4,353       $4,271
     Total expenses before
      interest and income
      taxes                          871          855   3,106        3,144
                                     ---          ---   -----        -----

     Income before interest
      and income taxes (1)           232          180   1,247        1,127
         GAAP Operating Margin (%
          of revenue)                 21%          17%     29%          26%

     Non-GAAP operating
      adjustments:
        Purchased software
         amortization                 15           14      55           57
        Intangibles amortization      15           14      56           53
        Restructuring and other
         (2)                          (2)          96       2          102
        Hedging (gains)/losses,
         net (3)                      (3)          10       -            -
     Total non-GAAP operating
      adjustments                     25          134     113          212
                                     ---          ---     ---          ---
     Non-GAAP income before
      interest and income
      taxes                          257          314   1,360        1,339
         Non-GAAP Operating
          Margin (% of revenue)
          (4)                         23%          30%     31%          31%

     Interest expense, net            14           22      76           62
     Interest on dilutive
      convertible bonds                -          (13)    (35)         (45)
                                     ---          ---     ---          ---
     Non-GAAP income before
      income taxes                   243          305   1,319        1,322

     Income tax provision (5)         68          136     450          487
                                     ---          ---     ---          ---

     Non-GAAP net income (6)        $175         $169    $869         $835
                                    ====         ====    ====         ====

     Non-GAAP diluted EPS
      (6)(7)(8)                    $0.34        $0.31   $1.62        $1.54
                                   =====        =====   =====        =====
     Diluted weighted average
      shares used in
      computation (6)                514          538     533          537



    (1)  See the Condensed Consolidated Statements of Operations on Table
    1 for a bridge from income before interest and income taxes to net
    income.
    (2)  Excludes $50 in costs related to the Fiscal 2010 restructuring
    plan for the three months and fiscal year ended March 31, 2010.
    (3)  Consists of gains and losses since inception of hedges that
    mature within the quarter, but exclude gains and losses of hedges
    that do not mature within the quarter.
    (4)  Excluding stock based compensation of $27 and $24, non-GAAP
    operating margin would have been 26% and 33% for the three months
    ended March 31, 2010 and 2009, respectively.  Excluding stock based
    compensation of $102 and $92, non-GAAP operating margin would have
    been 34% for both the fiscal years ended March 31, 2010 and March
    31, 2009.
    (5)  The effective tax rate on non-GAAP income is the Company's
    provision for income taxes expressed as a percentage of non-GAAP
    income before income taxes.  Such tax rates reflect the statutory
    tax rate after the adjustments for the impacts of certain discrete
    items (such as changes in tax rates, reconciliations of tax returns
    to tax provisions and resolutions of tax contingencies).
    (6)  Non-GAAP net income and the number of shares used in the
    computation of non-GAAP diluted EPS have been adjusted to reflect
    the dilutive impact of the Company's 1.625% Convertible Senior Notes
    and stock awards outstanding for all applicable periods.
    (7)  The calculation of the non-GAAP diluted EPS includes certain
    adjustments required by  ASC 260-10-45 which treats certain stock
    awards as participating securities for the computation of earnings
    per share.  As a result, non-GAAP diluted EPS may not equal the
    non-GAAP income divided by the diluted weighted average shares.
    (8)  Excluding stock based compensation of $27, non-GAAP diluted EPS
    would have been $0.37 for the three months ended March 31, 2010.
    Excluding stock based compensation of $102, non-GAAP diluted EPS
    would have been $1.74 for the fiscal year ended March 31, 2010.

          Refer to the discussion of non-GAAP financial measures included in
          the accompanying press release for additional information.

                                    Table 6
                                    CA, Inc.
                       Reconciliation of GAAP to Non-GAAP
                Operating Expenses and Diluted Income per Share
                                 (in millions)
                                  (unaudited)


                               Three Months Ended        Fiscal Year Ended
                                    March 31,                March 31,
                                    ---------                ---------
     Operating Expenses         2010          2009     2010           2009
     ------------------         ----          ----     ----           ----

     Total expenses
      before interest and
      income taxes              $871          $855   $3,106         $3,144

     Non-GAAP operating
      adjustments:
        Purchased software
         amortization             15            14       55             57
        Intangibles
         amortization             15            14       56             53
        Restructuring and
         other                    (2)           96        2            102
        Hedging
         (gains)/losses, net
         (1)                      (3)           10        -              -
     Total non-GAAP
      operating
      adjustments                 25           134      113            212
                                 ---           ---      ---            ---

     Total non-GAAP
      operating expenses        $846          $721   $2,993         $2,932
                                ====          ====   ======         ======


                             Three Months Ended    Fiscal Year Ended
                                  March 31,            March 31,
                                  ---------            ---------
     Diluted Income per
      Share                     2010          2009     2010           2009
     ------------------         ----                   ----           ----

     GAAP diluted income
      per share                $0.19         $0.13    $1.47          $1.29

     Non-GAAP
      adjustments, net of
      taxes
       Purchased software
        and intangibles
        amortization            0.04          0.03     0.14           0.13
       Restructuring and
        other                      -          0.12     0.01           0.12
       Hedging
        (gains)/losses, net
        (1)                    (0.01)         0.01        -              -
       Non-GAAP effective
        tax rate
        adjustments (2)         0.12          0.02        -              -
                                ----          ----      ---            ---

     Non-GAAP diluted
      income per share         $0.34         $0.31    $1.62          $1.54
                               =====         =====    =====          =====




    (1)  Consists of gains and losses since inception of hedges that
    mature within the quarter, but exclude gains and losses of hedges
    that do not mature within the quarter.
    (2)  The effective tax rate on non-GAAP income is the Company's
    provision for income taxes expressed as a percentage of non-GAAP
    income before income taxes.  Such tax rates reflect the statutory
    tax rate after the adjustments for the impacts of certain discrete
    items (such as changes in tax rates, reconciliations of tax returns
    to tax provisions and resolutions of tax contingencies).

          Refer to the discussion of Non-GAAP financial measures included in
          the accompanying press release for additional information.

                                   Table 7
                                  CA, Inc.
                      Effective Tax Rate Reconciliation
                              GAAP and Non-GAAP
                                (in millions)
                                 (unaudited)


                                  Three Months Ended      Fiscal Year Ended
                                    March 31, 2010          March 31, 2010
                                    --------------          --------------
                                  GAAP      Non-GAAP   GAAP       Non-GAAP
                                  ----      --------   ----       --------

     Income before income taxes
      (1)                          $218         $243  $1,171        $1,319

     Statutory tax rate              35%          35%     35%           35%

     Tax at statutory rate           76           85     410           462

     Adjustments for discrete and
      permanent items (2)            41          (17)    (10)          (12)
                                    ---          ---     ---           ---

     Total tax expense             $117          $68    $400          $450

     Effective tax rate (3)(4)     53.7%        28.1%   34.2%         34.2%



    (1)  Refer to Table 5 for a reconciliation of income before interest
    and income taxes on a GAAP basis to income before income taxes on a
    non-GAAP basis.
    (2)  The effective tax rate for GAAP generally includes the impact of
    discrete and permanent items in the period such items arise, whereas
    the effective tax rate for non-GAAP generally allocates the impact
    of such items pro rata to the fiscal year's remaining reporting
    periods.
    (3)  The effective tax rate on GAAP and non-GAAP income is the
    Company's provision for income taxes expressed as a percentage of
    GAAP and non-GAAP income before income taxes, respectively.  Such
    tax rates reflect the statutory tax rate after the adjustments for
    the impacts of certain discrete items (such as changes in tax rates,
    reconciliations of tax returns to tax provisions and resolutions of
    tax contingencies).
    (4)  Excluding stock based compensation of $27, the non-GAAP
    effective tax rate would have been 28.5% for the three months ended
    March 31, 2010.  On a year to date basis, excluding stock based
    compensation of $102, the non-GAAP effective tax rate would have
    been 34.2% for the fiscal year ended March 31, 2010.

          Refer to the discussion of non-GAAP financial measures included in
          the accompanying press release for additional information.

                                Table 8
                                CA, Inc.
         Reconciliation of Projected GAAP Earnings per Share to
                 Projected Non-GAAP Earnings per Share
                               (unaudited)


                                                         Fiscal Year
                                                            Ending
                                                       March 31, 2011
                                                       --------------


    Projected GAAP Diluted EPS  Range                $1.56  to    $1.64

    Non-GAAP Adjustments, Net of Taxes:
         Purchased Software and Intangibles
          Amortization                                0.19         0.19
         Share-based Compensation                     0.12         0.12
                                                      ----         ----

    Non-GAAP Projected Diluted Operating EPS
     Range                                           $1.87  to    $1.95
                                                     =====        =====




    Refer to the discussion of non-GAAP financial measures included in
    the accompanying press release for additional information.


SOURCE CA

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