CA Technologies Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended March 31, 2018; Provides Earnings Guidance for the Year 2019
For the full year, the company reported total revenue of $4,235 million compared to $4,036 million a year ago. Income before interest and income taxes was $1,119 million compared to $1,135 million a year ago. Income before income taxes was $1,021 million compared to $1,073 million a year ago. Net income was $476 million or $1.13 per diluted share compared to $775 million or $1.85 per diluted share a year ago. Non-GAAP income before interest and income taxes as $1,551 million compared to $1,505 million a year ago. Non-GAAP net income was $1,091 million compared to $1,042 million a year ago. Non-GAAP diluted EPS was $2.59 compared to $2.48 a year ago.
For the fiscal 2019, total revenue to change in a range of flat to plus 1% as reported and minus 1% to flat in constant currency. At March 31, 2018 exchange rates, this translates to reported revenue of $4.25 billion to $4.29 billion. Full-year GAAP operating margin between 24% and 26% and non-GAAP operating margin of 37%. The company also expects a full-year GAAP and non-GAAP effective tax rate of approximately 22%. GAAP diluted earnings per share to increase in a range of 58% to 65% as reported and 50% to 58% in constant currency. At March 31, 2018 exchange rates, this translates to reported GAAP diluted earnings per share of $1.78 to $1.87. Non-GAAP diluted earnings per share to increase in a range of 6% to 8% as reported and 2% to 4% in constant currency. At March 31, 2018 exchange rates, this translates to reported non-GAAP diluted earnings per share of $2.75 to $2.81. Cash flow from operations to decrease in a range of 5% to 1% as reported and 7% to 3% 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. This includes the impact related to the restructuring charge, which is estimated to be in the range of $80 million to $100 million. It also includes an estimated cash tax headwind of approximately $50 million compared to fiscal 2018 due to the convergence of ASC 606 and US Tax Reform. The company estimates the impact of cash taxes in fiscal 2019 to create an approximate 4 point headwind to cash flow from operations and the impact of restructuring to create a 6 to 8 point headwind to cash flow from operations.