CA Technologies
| File:CA Inc logo.gif | |
| Company type | Public (Nasdaq: CA) |
|---|---|
| Industry | Enterprise software IT Services |
| Founded | 1976 |
| Headquarters | , USA |
Key people | John A. Swainson, CEO; Michael J Christenson, President & COO; Russell Artzt, Vice President & Cofounder; Nancy Cooper, CFO; Al Nugent, CTO; Jim Bryant, CAO; Don Friedman, CMO |
| Products | See article |
| Revenue |  $4.3 billion USD (2008)[1] |
Number of employees | 13,700 (2008)[1] |
| Website | CA, Inc. |
CA, Inc. Nasdaq: CA — formerly, Computer Associates, Inc. — is a multinational computer software corporation headquartered in Islandia, New York. More specifically, it develops and markets information technology (IT) management software, which it sells both directly via its sales team and indirectly via systems integrators, value-added resellers, and other service providers.
The company articulates its vision of how enterprises can harness the power of IT through what CA calls Enterprise IT Management (EITM). EITM divides into three broad categories: [2]
- IT governance: Tracking the business and technology implications of IT decisions.
- Business service management: Delivering business services to the enterprise, and sometimes beyond i.e. to the enterprise’s customers, suppliers, and business partners.
- Security management: Ensuring that enterprises can protect the information they need to conduct business.
CA, which posted $4.3 billion USD in revenue for fiscal year 2008 (ending March 31, 2008),[1] maintains 150 offices in more than 45 countries.[3] The company employs 13,700 people (March 31, 2008) ),[1] including 5900 engineers.[1] The Software Top 100[4] — an independent initiative — ranks CA as the seventh-largest[5] software company in the world by 2007 revenue. CA holds more than 600 patents worldwide, and more than 1,000 patent applications are pending.[1]
Inception and Early Years
In 1969, under regulatory pressure, IBM announced its decision to unbundle the sale of mainframe computers from computer programs and support services.[8] (At this time, the computer industry was dominated by mainframes, principally from IBM.) The decision opened new markets to competition and provided an opportunity for entrepreneurs to enter the nascent software industry — an opportunity that Charles Wang and his friend and business partner Russ Artzt would exploit from a joint venture with Swiss company Computer Associates.
The Swiss company allowed Wang and Artzt to set up a small office in Manhattan in 1976. From there, they launched their first successful product — CA-SORT, a program that helped computers to efficiently sort data. The program won many customers who switched from an alternative IBM program. In consequence, the venture (called Computer Associates International) was able to expand, hiring salespeople and programmers and buying rights to market other programs from smaller firms. By 1980, Computer Associates International was able to establish itself as an independent entity, although the Swiss company Computer Associates’s founder, Walter Haefner, is still its largest shareholder.[9]
1980s
Following an initial public offering in 1981, the company expanded rapidly through a series of acquisitions, including software makers Capex, Information Unlimited Software, Johnson Systems, CGA Computer, and Uccel. Whereas CA’s focus during this time was on system utilities, the company also sought to compete in the applications market with firms such as Microsoft and Lotus Development Corporation through acquisition of companies that provided spreadsheet, word processor, graphics, and other application software. As the decade ended, CA became the first software company to exceed $1 billion USD in sales.
1990s
In the early years of the 1990s, CA was forced to address criticism of the company (specifically, a lack of strategic focus, incompatibilities between its disparate product line, a reputation for poor customer service, and failure to win a significant share in application software markets) as well as a sharp decline in its stock price, which fell more than 50% during 1990. The ensuing changes included a push into foreign markets (Japan, Canada, Africa, and Latin America), reform in how the company charged its customers for software maintenance, and improved compatibility with products from other vendors such as Hewlett-Packard, Apple Computer, and Digital Equipment Corporation. Meanwhile, CA continued to expand through acquisitions, most notably in client-server computing (Legent Corporation for $1.78 billion in 1995, at that time the biggest ever acquisition in the software industry) and data storage software (Cheyenne Software in 1996).
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.[10] The company also suffered from controversies regarding executive compensation, accounting methods, and insider-trading by its then CEO and chairman, Sanjay Kumar. Between 2004 and 2006, CA made sweeping changes among its board and executive team, including the appointment of a new (and current) CEO, John Swainson, plus new appointments in the roles 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.
During this time, the company presented its Enterprise IT Management (EITM) vision to unify and simplify enterprise-wide IT[11] and debuted the largest number of products in its history. 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.[12] CA changed its name from “Computer Associates, Inc.” to “CA, Inc.” in 2006.
Software Products
CA offers a broad portfolio of software products and services for both distributed computing and mainframe environments in support of its Enterprise IT Management (EITM) strategy.[13] The portfolio spans the following product categories:[14]
- Infrastructure and operations management
- Project, portfolio, and financial management
- Security management
- IT service and asset management
- Application and development databases
- Database management
- Application performance management
- Mainframe solutions
- Storage and recovery management
- Business governance
The company maintains product development staff in locations worldwide including the United States, Australia, China, the Czech Republic, Germany, India, Israel, Japan, and the United Kingdom. [1] Most of CA’s products target large and medium-size enterprises, but some of its product line — for example, its anti-virus, anti-spyware, and personal firewall solutions — are for home and home-office users.[15]
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.[16] The companies reached a settlement in 1996.[6] [7] 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.[17]
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[18]) 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.[19] [7]
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. 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. 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.[20] 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. Eight CA executives since pled guilty to fraud charges — most notably, former CEO and chairman Sanjay Kumar, who received a 12-year prison sentence for orchestrating the scandal.[21] The company subsequently made sweeping changes through virtually all of its senior leadership positions.[6]
Acquisitions[7]
CA has a long history of acquisitions in the software industry.
- 2006: MDY Group (undisclosed amount)[22]
- 2006: Cendura (undisclosed amount)[23]
- 2006: Control-F1 Corporation (undisclosed amount)[24]
- 2006: Cybermation Inc. – $75 million USD[25]
- 2006: XOsoft, Inc. [26]
- 2006: Wily Technology – $375 million USD[27]
- 2005: Niku – $350 million USD(renamed CA Clarity)[28]
- 2005: Concord Communications/Aprisma Management Technologies[29]
- 2005: iLumin Software Services
- 2005: Tiny Software [30]
- 2004: Netegrity
- 2004: PestPatrol (undisclosed amount)[31]
- 2004: Miramar (undisclosed amount)[32]
- 2003: Netreon (undisclosed amount)[33]
- 2003: SilentRunner (undisclosed amount)[34]
- 2000: Sterling Software – $3.91 billion USD[35]
- 2000: Cayenne Software
- 2000: Applied Management Systems Inc.
- 1999: Platinum Technology International – $3.5 billion USD[36]
- 1999: CMSI (Computer Management Sciences, Inc.) – $435 million USD[37]
- 1998: QXCOM (undisclosed amount)[38]
- 1998: Viewpoint DataLabs International, Inc.[39]
- 1998: Realogic, Inc.
- 1997: AI Ware, Inc.
- 1997: Avalan Technology, Inc.[40]
- 1996: Cheyenne Software – $1.2 billion USD[41]
- 1995: Legent Corporation – $1.78 billion USD
- 1994: The ASK Group, Inc. – $311 million USD[42]
- 1992: Nantucket Corporation
- 1991: Pansophic Systems, Inc. – $290 million USD
- 1991: On-Line Software International Inc. – $120 million USD
- 1989: Cullinet – $289 million USD
- 1988: Applied Data Research – $170 million USD
- 1987: Uccel – $830 million USD
- 1986: Software International – $24 million USD
- 1986: Integrated Software Systems Corporation (ISSCO) – $67 million USD
- 1985: Top Secret (from CGA for $25 million) USD
- 1985: Sorcim – $27 million USD
- 1985: Arkay Computer (undisclosed amount)
- 1984: Johnson Systems, Inc. – $16 million USD
- 1983: Information Unlimited Software – $10 million USD
- 1983: Stewart P. Orr Associates – $2 million USD
- 1982: Capex Corporation – $22 million USD
- 1977: Viking Data Systems, Inc.
References
- ^ a b c d e f g "CA Annual Report 2008" (PDF). CA, Inc. Retrieved 2008-08-29. Cite error: The named reference "CA Annual Report 2008" was defined multiple times with different content (see the help page).
- ^ http://www.ca.com/us/enterprise-it-management.aspx Enterprise IT Management (CA web page)
- ^ CA - CA, Inc. - Fortune 500 2006 - CNNMoney
- ^ http://www.softwaretop100.org/team.php The Software Top 100
- ^ http://www.softwaretop100.org/list.php?page=1 Top 25 software companies by 2007 revenue
- ^ a b c http://www.ca.com/us/about/content.aspx?cid=120941 History
- ^ a b c d http://www.fundinguniverse.com/company-histories/Computer-Associates-International-Inc-Company-History.html Company History
- ^ http://www-rohan.sdsu.edu/faculty/giftfire/ibm.html IBM: Producer or Predator
- ^ http://findarticles.com/p/articles/mi_qn4189/is_20060127/ai_n16038914 Activist investor group becomes No. 1 institutional holder
- ^ http://query.nytimes.com/gst/fullpage.html?res=9C05E4DE1630F932A15755C0A9679C8B63&sec=&spon=&pagewanted=all Entrepreneur to Begin Proxy Fight for Computer Associates, New York Times, June 21, 2001
- ^ http://www.internetnews.com/ent-news/article.php/3564046 InternetNews.com – ‘Believe Again’ in CA
- ^ http://www.ca.com/us/press/release.aspx?cid=76885 CA Press Release, November 13, 2005: CA Launches New Global Branding Program
- ^ http://mediaproducts.gartner.com/reprints/ca/156880/article1.html Gartner Vendor Rating
- ^ http://www.ca.com/us/it-management-products.aspx CA’s Product Categories (CA web site)
- ^ http://shop.ca.com/software_products/protect_optimize.aspx CA’s Home and Home-Office Products (CA web site)
- ^ http://sec.edgar-online.com/1994/03/29/00/0000040730-94-000002/Section4.asp Excerpt from General Motors 10-K SEC Filing, March 29, 1994
- ^ http://www.forbes.com/forbes/1998/0518/6110098a_print.html A pain in the posterior, Forbes, May 18, 1998
- ^ http://www.corporatenarc.com/cascandal.php Computer Associates Accounting Scandal
- ^ http://www.businessweek.com/1999/99_16/b3625017.htm Executive Pay: Up, Up and Away, Business Week Online, April 19, 1999
- ^ http://www.sec.gov/news/press/2004-134.htm SEC files securities fraud charges against Computer Associates, Inc.
- ^ http://www.nytimes.com/2006/11/03/technology/03computer.html?_r=1&pagewanted=print&oref=slogin Ex-Leader of Computer Associates Gets 12-Year Sentence and Fine, New York Times, November 3, 2006
- ^ http://searchstorage.techtarget.com/news/article/0,289142,sid5_gci1193633,00.html, A buys MDY for records retention management, searchstorage.com, June 14, 2006
- ^ http://www.networkworld.com/news/2006/092706-ca-cendura.html CA makes buyout to boost application management, NetworkWorld.com, September 27, 2006
- ^ http://findarticles.com/p/articles/mi_qn4189/is_20060111/ai_n16010606 Long Island Business News, January 11, 2006
- ^ http://www.networkworld.com/news/2006/041306-ca-cybermation.html CA ups stake in mainframe management with Cybermation acquisition, NetworkWorld.com, April 13, 2006
- ^ http://searchstorage.techtarget.com/news/article/0,289142,sid5_gci1198697,00.html# CA acquires XOsoft, adds replication to ARCserve, searchstorage.com
- ^ http://investor.ca.com/releasedetail.cfm?ReleaseID=316670 CA Acquires Privately Held Wily Technology (CA web page)
- ^ http://findarticles.com/p/articles/mi_m0ECZ/is_2005_June_10/ai_n13831300 Computer Associates to acquire Niku in USD350m deal
- ^ http://www.ca.com/us/content/campaign.aspx?cid=158013 Aprisma is Now CA (CA web page)
- ^ http://investor.ca.com/releasedetail.cfm?ReleaseID=316006 CA Acquires Tiny Software, June 27, 2006 (CA web page)
- ^ http://www.byteandswitch.com/document.asp?doc_id=57872 CA Acquires PestPatrol, ByteAndSwitch
- ^ http://news.cnet.com/CA-buys-desktop-management-software-maker/2110-1014_3-5172295.html?tag=nw.6 CA buys desktop management software maker, CNET.com, March 11, 2004
- ^ http://www.dmreview.com/news/6336-1.html, CA Acquires Netreon, DM Review Online, February 5, 2003
- ^ http://www.cowen.com/InvestmentBanking_635.asp
- ^ http://www.faqs.org/abstracts/Business-general/Computer-Associates-in-$391-billion-deal-in-industrys-biggest-pact-Sterling-Software-to-add-to-mainf.html Computer Associates in $3.91 billion deal; in industry's biggest pact, Sterling Software to add to mainframe business
- ^ http://findarticles.com/p/articles/mi_m0EIN/is_1999_March_29/ai_54235200 Computer Associates To Acquire PLATINUM Technology in Largest Software Deal in History, BusinessWire, March 29, 1999
- ^ http://www.crn.com/it-channel/18801409 CA To Acquire CMSI For $435 Million, CRN, February 8, 1999
- ^ http://www.theregister.co.uk/1998/09/02/ca_buys_qxcom/ CA buys QXCOM, The Register, September 2, 1998
- ^ http://www.allbusiness.com/company-activities-management/company-structures-ownership/6909002-1.html Computer Associates Acquires Viewpoint Datalabs, BusinessWire, October 29, 1998
- ^ http://www.allbusiness.com/company-activities-management/operations-customer/7020779-1.html Computer Associates Acquires All Assets of AvalanTechnology, Inc., BusinessWire, November 12, 1997
- ^ http://findarticles.com/p/articles/mi_m0EIN/is_1996_Oct_7/ai_18738324 Computer Associates To Acquire Cheyenne Software, Inc., BusinessWire, October 7, 1996
- ^ http://findarticles.com/p/articles/mi_qa3653/is_199405/ai_n8723467?tag=content;col1 Computer Associates springs a bid on ASK Group, Corporate Growth Report Weekly, May 30, 1994
External links
- CA Homepage
- CA, Inc. Announces $250,000 Contribution to Sponsor The National Foundation for Teaching Entrepreneurship (NFTE) Biz Camps
- CA Reports First Quarter Fiscal Year 2009 Results
- Top IT Professionals Vote CA “Best” for Ninth Straight PPM Summit
- CA Delivers Enhanced Records Management Solution