CA, Inc. (NASDAQ:CA) Q4 2016 Earnings Conference Call - Final Transcript
May 11, 2016 • 05:00 pm ET
Good day, ladies and gentlemen and welcome to the CA Technologies fourth quarter FY16 earnings conference call.
At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. As a reminder, this conference is being recorded.
I would now like to hand the meeting over to Traci Tsuchiguchi, Vice President, Investor Relations. Please go ahead.
Thank you and good afternoon, everyone.
Welcome to CA Technologies fourth quarter and fiscal year 2016 earnings call. Joining me today are Mike Gregoire, our Chief Executive Officer; and Rich Beckert, our Chief Financial Officer. Mike and Rich will offer some prepared remarks, and then we will open the call up for Q&A.
These prepared comments were previously recorded and this conference call is being broadcast on Wednesday, May 11 over the telephone and the Internet. The information shared in this call is effective as of today's date and will not be updated. All content is the property of CA Technologies and is protected by US and international copyright law and may not be reproduced or transcribed in any way without the express written consent of CA Technologies. We consider your continued participation in this call as consent to our recording.
During this call, non-GAAP financial measures will be discussed. Reconciliations to the most directly comparable GAAP financial measures are included in our earnings release, which was filed on Form 8-K earlier today, as well as in our supplemental earnings materials, all of which are available on our website at www.ca.com/invest.
(Forward-Looking Cautionary Statements)
Please note that our first quarter quiet period begins at the close of business on June 15, 2016. Let me remind you that all comparisons are year-over-year and in constant currency unless otherwise indicated.
So with that, let me turn the call over to Mike.
Good afternoon. Thank you for joining us.
I'm pleased to report that we achieved full-year results consistent with our guidance. Most performance metrics came in line or above the high end. Our FY16 performance demonstrates progress in our ongoing work to reposition our product portfolio, refine our go-to-market strategy, and intensely focus on customer experience and customer success.
This effort has culminated in our first quarter of revenue growth in nearly four years. However, our Q4 new sales execution was not as crisp as it could have been, a good reminder that we still have work to do. We believe we are poised to cross over into modest revenue growth for FY17, and over the medium term, deliver on our guidance of low single-digit growth. This is a big, first step in our strategic goal of creating a Company for long-term sustainable growth.
For the year, revenue, operating margin, and EPS came in line with our guidance range and CFFO exceeded the high end of the range. Total new sales of FY16 were up low teens year-over-year, and organic new sales were up mid-single digits. This is the third consecutive year of step