CA revenue boost leaves Wall Street cold

CA has begun its first full year under new leadership and a new brand with a healthy results announcement tempered only by warnings the company will narrowly miss Wall Street forecasts next quarter.

However, the figures for the third quarter just closed show reasonable growth with revenues of $967m - up from $917m for the comparable period of fiscal 2005. Profits jumped to $59m from $31m.

John Swainson, CEO of CA, said the results are an endorsement for the way the company is positioning itself and the changes which he has rung already during his tenure.

Swainson said in a statement: "In the third quarter, CA continued to make enhancements to the business to drive long-term growth. We have the right strategy in place to transform the business and establish CA as the company customers turn to for end-to-end enterprise IT management solutions."

However, the results did little to ignite Wall Street - with warnings about fourth-quarter figures missing forecasts clearly troubling some investors as CA's share price dipped.

CA said it expects to announce revenues of $975m in three months, missing analysts' Q4 forecasts of $1bn, according to Reuters Estimates.