CA Technologies

CA Technologies

Type	Public
Traded as	NASDAQ: CA NASDAQ-100 Component S&P 500 Component
Industry	Enterprise software
Founded	1976
Founder(s)	Charles B. Wang Russell M. Artzt
Headquarters	Islandia, New York, U.S.
Key people	Arthur F. Weinbach (Chairman) Michael P. Gregoire (CEO)
Products	Computer software
Revenue	US$ 5.082 billion (FY 2011)[1]
Operating income	US$ 1.57 billion (FY 2011)[1]
Net income	US$ 870 million (FY 2011)[1]
Total assets	US$ 12.838 billion (FY 2011)[1]
Total equity	US$ 5.312 billion (FY 2011)[1]
Employees	13,800 (March 2011)
Website	CA.com

CA Technologies, Inc., formerly CA, Inc. and Computer Associates International, Inc., is one of the largest independent software corporations in the world.^[2] "CA" for short, is an American, multinational, publicly held company headquartered in Islandia, New York. The company creates systems software (and previously applications software) that runs in mainframe, distributed computing, virtual machine and cloud computing environments.

Although the company once sold anti-virus and Internet security commercial software programs for personal computers during its venture into the business-to-consumer ("B2C") market, it remains primarily known for its business-to-business ("B2B") mainframe and distributed (client/server, etc.) information technology ("IT") infrastructure applications since the spin off of their security products into Total Defense.^[3] CA Technologies claims that its computer software products are used by a majority of the Forbes Global 2,000 companies.^[4]

CA Technologies posted $4.4 billion US$ in revenue for fiscal year 2010 (ending March 31, 2010)^[5] and maintains 100 offices in more than 45 countries.^[6] The company employs 13,200 people (March 31, 2010),^[5] including 5,900 engineers.^[5] CA holds more than 400 patents worldwide, and has more than 700 patent applications pending.^[5]

In 2010 the company acquired eight companies to support its Cloud strategy: 3Tera,^[7] Nimsoft,^[8] NetQoS,^[9] Oblicore,^[10] Cassatt,^[11] 4Base Technology,^[12] Arcot Systems,^[13] and Hyperformix.^[14][15]

History

Early History

The company was established by Charles Wang and Russell Artzt in 1976.^[16]

1980s

Throughout the decade, the company grew rapidly via several strategic, sometimes surprising acquisitions: CGA Computer's Top Secret product, plus software makers Capex Corporation, Johnson Systems (flagship product JARS), Value Software (flagship product DISPATCH) and Uccel Corporation^[17] among them. In May 1985, CA-Unicenter was introduced as an integrated collection of many of its recently acquired, mainframe systems products. Its sales (often "wrap & roll" financial deals) helped bring CA enough revenue and market share, especially from existing customers converting from DOS/VSE (z/VSE today) to OS/MVS (z/OS today), that CA was eventually able to acquire its archrival, UCCEL Corporation, in 1987. Ownership of those industry-standard, flagship products (UCC-1, UCC-7, UCC-11, plus ACF2) made CA the largest independent vendor of mainframe infrastructure software and dominant vendor of OS/MVS security software with CA-Top Secret (#2 market share) and CA-ACF2 (#1 market share). IBM's RACF product held the #3 market share position. UCCEL's acquisition also made Walter Haefner, that company's half-owner at the time, CA's largest individual shareholder – a distinction he enjoyed^[18] until his death in June 2012.

2000s

CA faced further challenges in the early 2000s including constraints imposed by the U.S. Department of Justice on acquisitions, the need to service and refinance large amounts of debt, and a proxy battle between the board and shareholders.^[19] The company also suffered from controversies regarding executive compensation, accounting methods, and insider-trading by its then CEO and chairman, Sanjay Kumar. CA started the India Technology Centre in Hyderabad on December 10, 2003 with an initial group of engineers recruited in the first batch of 50 employees. Between 2004 and 2006, CA made sweeping changes among its board and executive team, including the appointment of a new CEO, John Swainson, plus new appointments to the positions of Chairman, Executive Vice President of Strategy and Business Development, CFO, COO, CTO, Chief Marketing Officer, Chief Administrative Officer, and co-General Counsel, most of which were outside appointments. On September 1, 2009, CA announced CEO John Swainson's decision to retire by the end of the year.^[20]

During this time, the company presented its Enterprise IT Management (EITM) vision to unify and simplify enterprise-wide IT^[21] and debuted the largest number of products in its history. In 2004, CA released Ingres r3 under an open source license. The code includes the DBMS server and utilities and the character-based front-end and application-development tools. In essence, the code has everything except OpenROAD, the Windows 4GL GUI-based development environment. In November 2005, Garnett & Helfrich Capital, in partnership with CA, created a new company called Ingres Corporation, which provides support and services for Ingres, OpenROAD, and the connectivity products. In 2006, CA obtained yet another well-respected, mainframe-centric, job scheduling / workload automation product, ESP, by acquiring Cybermation, Inc. Underscoring the message of a changed company, CA also unveiled a new global branding program to inspire the industry to “Believe Again” in the power of technology to support business.^[22] CA changed its name from Computer Associates International, Inc. to CA, Inc. in 2006 and to CA Technologies in 2010.^[23] In Q2 of 2009, the company announced its support for Lean IT through an announcement of 13 new and enhanced EITM products.^[24]

2010s

On January 28, 2010, CA Technologies announced that William E. McCracken would be its chairman of the board and chief executive officer.^[25]

On October 22, 2010, the company was ranked among the greenest companies by Newsweek magazine’s Green rankings.^[26]

In 2011, CA sold its antivirus properties to Updata Partners, which spun the division off as 'Total Defense'.^[27][28]

In 2012 Royal Bank of Scotland Group, a UK banking group, told journalists it was considering legal action against CA as a consequence of large scale disruption in payment processing identified as having a root cause in the CA-7 mainframe job workflow and scheduling software provided by CA.^[29]

On January 7, 2013, CA Technologies announced that Michael P. Gregoire would be a member of the board and new chief executive officer.^[30][31]

Controversies

CA has been party to a number of lawsuits over its thirty-plus year history, and particularly so during the period from the early 1990s to early 2000s. One of the higher-profile disputes was a 1992 suit by Electronic Data Systems (EDS), which was a CA customer. EDS accused CA of breach of contract, including misuse of copyright, and violations of anti-trust laws. CA filed a counter-claim, also alleging breach of contract, including copyright infringement and misappropriation of trade secrets.^[32] The companies reached a settlement in 1996.^[33][34] Meanwhile, a hostile (and unsuccessful) takeover bid by CA in 1998 for computer consulting firm Computer Sciences Corporation (CSC) prompted a bribery suit by CSC’s (then) chairman Van Honeycutt against CA’s founder and (then) CEO, Charles Wang.^[35]

Further controversy followed in 1999 when Wang received the largest bonus in history at that time from a public company. Moreover, this receipt (a $670 million stock grant that dated to the vesting of a 1995 stock option^[36]) occurred while the company faced a slowdown in European markets and an economic slump in Asia, both of which had affected CA's earnings and stock price. In total, the company took a $675 million after-tax charge for $1.1 billion in payouts to Wang and other top CA executives.^[34][37]

In 2000 a shareholder-based class-action lawsuit accused CA of misstating more than $500 million in revenue in its 1998 and 1999 fiscal years in order to artificially inflate its stock price.^[38] An investigation by the Securities and Exchange Commission (SEC) also followed, which resulted in charges against the company and some of its former top executives.^[39] The SEC alleged that from 1998 to 2000, CA routinely kept its books open to include quarterly revenue from contracts executed after the quarter ended in order to meet Wall Street analysts’ expectations.^[40] The company reached a settlement with the SEC and Department of Justice in 2004, agreeing to pay $225 million in restitution to shareholders and to reform its corporate governance and financial accounting controls.^[41] Eight CA executives since pleaded guilty to fraud charges – most notably, former CEO and chairman Sanjay Kumar, who received a 12-year prison sentence for orchestrating the scandal.^[42] The company subsequently made sweeping changes through virtually all of its senior leadership positions.^[43]

Acquisitions

CA has a long history of acquisitions in the software industry.^[34]

• 1981: Viking Data Systems, Inc.^[44]
• 1982: Capex Corporation — US$22 million
• 1987: Uccel — US$830 million
• 1988: Applied Data Research — US$170 million
• 1989: Cullinet — US$289 million
• 1991: On-Line Software International, Inc. — $120 million
• 1991: Pansophic Systems, Inc.^[45] — US$290 million
• 1994: The ASK Group, Inc. — US$311 million^[46][47]
• 1995: Legent Corporation — US$1.78 billion^[48]
• 1996: Cheyenne Software — US$1.2 billion^[49]
• 1999: CMSI (Computer Management Sciences, Inc.) — US$435 million^[50][51]
• 1999: Platinum Technology International — US$3.5 billion^[52]
• 2000: Sterling Software — US$3.91 billion^[53][54]
• 2005: Tiny Software^[55]
• 2005: Niku – US$350 million (renamed CA Clarity)^[56]
• 2006: Wily Technology — US$375 million^[57][58]
• 2009: NetQoS Inc. — US$200 million^[59]
• 2010: Oblicore — US$20 million^[25][60]
• 2010: 3tera^[60]
• 2010: Nimsoft US$350 million^[61][8]
• 2010: Hyperformix ^[62]
• 2010: Arcot Systems — US$200 million^[63]
• 2011: ITKO, Inc. — US$330 million^[64]

See also

Companies portal

• Endevor
• LA Technology and Softline

References

External links

• CA Technologies
• CA Technologies SEC Filings

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