CA REPORTS SOLID Q4 AND FISCAL YEAR 2007 RESULTS

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) May 23, 2007 -- ISLANDIA, N.Y., May 23, 2007 � CA (NYSE:CA), one of the world's largest management software companies, today announced results for its fourth quarter and full year fiscal 2007, which ended March 31, 2007.

Financial Information Overview

*Operating earnings per share is a non-GAAP financial measure, as noted in the discussion of non-GAAP results below. A reconciliation of GAAP loss per share/earnings per share to non-GAAP earnings per share is included in the tables following this news release.

�I am pleased with CA's execution in the second half of the 2007 fiscal year as we met or exceeded our full-year guidance for total revenue, non-GAAP earnings per share, total product and services bookings and cash flow from operations,� said John Swainson, CA president and chief executive officer. � Our solid performance was a result of our increased focus on execution in all areas of our business, with particular emphasis on our restructuring and cost savings efforts, go-to-market strategy and an improved operational focus.

�Over the last 12 months, we have refreshed virtually all our major product lines and at CA WORLD in April introduced 16 Capability Solutions based on our Enterprise IT Management vision,� Swainson continued. �We are seeing increased demand for our infrastructure management, business service optimization and security management offerings, which help our customers govern, manage and secure their IT environments. I am confident that we have the right technology vision, products and solutions and senior management team to continue our momentum from the second half of fiscal 2007.

�I am also very pleased that CA has successfully concluded the Deferred Prosecution Agreement,� Swainson said. �As a result of the hard work of all CA employees, we are now a stronger company and are moving forward with a sense of vigor and enthusiasm to becoming one of the world's most successful software companies.�

Fourth Quarter and Full-Year Results

Revenue for the fourth quarter was $1.005 billion, an increase of 7 percent, or 4 percent in constant currency, over the $942 million in the comparable prior year period. Aside from the gains attributed to currency, the increase in revenue primarily came from growth in subscription revenue and professional services. The increase was partially offset by decreases in software fees and other revenue, maintenance and financing fee revenue as CA continues to transition from its prior business model. Revenue from professional services was up 3 percent over the comparable prior year period.

Total North America revenue was up 6 percent while revenue from international operations was down approximately 2 percent on a constant currency basis.

For the full year, revenue was $3.943 billion, up 5 percent, or 3 percent in constant currency, compared to the $3.772 billion reported in fiscal year 2006. As in the fourth quarter, the increase primarily was due to growth in subscription revenue and professional services revenue. Those increases partly were offset by declines in software fees and other revenue, maintenance and financing fee revenue.

Subscription revenue for the fourth quarter was $793 million, an increase of 11 percent, or 8 percent in constant currency, over the $715 million reported in the prior year period. Subscription revenue accounted for 79 percent of total revenue, compared to 76 percent reported in the comparable prior year period. For the fiscal year, subscription revenue was $3.067 billion, an increase of 8 percent, or 7 percent in constant currency, compared to the $2.837 billion reported in the prior year period. Subscription revenue accounted for 78 percent of total revenue, compared to 75 percent reported in the 2006 fiscal year.

Total product and services bookings in the fourth quarter were $1.133 billion, and for the full year, bookings were $3.938 billion. This represents a year-over-year decline of 5 percent from the $1.192 billion reported in the fourth quarter of fiscal year 2006 and an increase of 16 percent from the $3.381 billion reported for the full 2006 fiscal year. The decrease in fourth quarter bookings year-over-year can be attributed, in part, to very strong bookings in the third quarter, which decreased the number of contracts that were available to be renewed in the fourth quarter of fiscal year 2007.

The weighted average duration of new direct bookings in fiscal year 2007 was 3.29 years, compared to 3.03 years in fiscal year 2006.

Total expenses, before interest and taxes, for the fourth quarter were $1.017 billion, up 3 percent, compared with $988 million in the prior year period. In the quarter, the Company experienced significantly higher restructuring and other costs and expenses associated with the delivery of professional services compared to the prior year period as well as an increase in bonus expenditures. This was offset partially by significantly lower sales commission expense and amortization of capitalized software costs.

On a non-GAAP basis, the Company reported fourth quarter operating expenses of $830 million, which excludes restructuring and other costs and amortization costs, down 2 percent from the $851 million reported in the prior year period. This decreased expense level for the fourth quarter reflects lower sales commission and promotion expenses and progress on expense management initiatives, offset by higher expenses associated with the delivery of professional services.

For the full year, total expenses, before interest and taxes, were $3.729 billion, up 3 percent from the $3.606 billion reported for fiscal 2006. The Company experienced significantly higher restructuring and other expenses and costs associated with the delivery of professional services in fiscal year 2007 as compared to fiscal year 2006, as well as an increase in bonuses expenditures. This was offset partially by lower commissions expense and lower amortization of capitalized software costs.

The fourth quarter of fiscal year 2007 included restructuring and other charges of $100 million, of which $71 million was related to severance costs and $8 million associated with the closure of facilities under the fiscal year 2007 cost reduction and restructuring plan. For the full year, the Company recorded restructuring and other costs of $201 million. The fiscal year 2007 total includes $147 million in costs associated with the Company's fiscal year 2007 cost reduction and restructuring plan and $19 million in costs associated with the Company's fiscal year 2006 cost reduction and restructuring plan.

On a non-GAAP basis, the Company reported full-year operating expenses for fiscal year 2007 of $3.160 billion, up 4 percent from the $3.048 billion reported in fiscal year 2006. A reconciliation of GAAP expenses to non-GAAP expenses is included in the tables following this news release.

The Company recorded a GAAP loss from continuing operations of $20 million for the fourth quarter, or ($0.04) per diluted common share, compared to a loss of $39 million, or ($0.07) per diluted common share, in the prior year period. As stated above, the fourth quarter GAAP results were adversely affected by $79 million in charges associated with its fiscal year 2007 cost reduction and restructuring plan. For the full year, GAAP income from continuing operations was $121 million, or $0.22 per diluted common share, compared to $160 million, or $0.27 per diluted common share, in fiscal year 2006. The decrease can be primarily attributed to the costs associated with the Company's cost reduction and restructuring program.

The Company recorded non-GAAP net income from continuing operations of $109 million for the fourth quarter, or $0.20 per diluted common share, compared to $81 million, or $0.13 per diluted common share, reported a year earlier. For the full year, non-GAAP income from continuing operations was $499 million, or $0.88 per diluted common share, compared to $514 million, or $0.85 per diluted common share, reported in fiscal year 2006. A reconciliation of GAAP income from continuing operations to non-GAAP income from continuing operations is included in the tables following this news release.

For the fourth quarter of fiscal year 2007, CA reported $521 million in cash flow from operations, down 8 percent from the $566 million reported in the prior year period. On a comparable basis, fourth quarter non-GAAP adjusted cash flow from operations was $551 million adjusted for $30 million in restructuring and other payments, versus $648 million reported in the prior year adjusted for a $75 million payment to the Restitution Fund and $7 million in restructuring and other payments.

Fourth quarter cash flow was affected negatively by a lower volume of bookings and associated billings, and a year-over-year reduction in the aggregate amount of single installment contract payments over the comparable period last fiscal year .

For the full year, cash flow from operations was $1.068 billion, compared to $1.380 billion in the prior period. The Company exceeded cash flow from operations guidance, in part, due to the positive impact of $90 million in lower-than-expected tax payments in the fourth quarter�the majority of which the Company now expects to pay in the first half of fiscal 2008. The full-year cash flow also was affected by a decrease in the average time it took the Company to pay vendors for products and services, higher expenses, and increased restructuring costs. In addition, cash flow also was negatively affected by contributions to CA's employee 401(k) savings plan in fiscal year 2007 that were not made in the prior fiscal year.

On a comparable basis, non-GAAP adjusted cash flow from operations for the full year, adjusted for $94 million in restructuring and other payments, was $1.162 billion, compared to $1.552 billion, adjusted for $150 million in payments to the Restitution Fund and $22 million in restru

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