CA Technologies reported unaudited consolidated earnings results for the third quarter and nine months ended Dec. 31, 2017. For the quarter, revenue was $1,093,000 against $1,007,000 a year ago. GAAP net loss was $93 million against income of $208 million a year ago. Non-GAAP net income was $314 million against $263 million a year ago. GAAP diluted LPS was $0.23 against earnings of $0.50 a year ago. Non-GAAP diluted EPS was $0.75 against $0.63 a year ago. Net cash provided by operating activities was $315 million against $517 million a year ago. Income before interest and income taxes was $307 million against $308 million a year ago. Income before income taxes was $282 million against $292 million a year ago. Purchases of property and equipment was $12 million against $14 million a year ago. Non-GAAP income before interest and income taxes was $410 million against $384 million a year ago. Total revenue increased primarily due to an increase in software fees and other revenue. Fourth quarter fiscal 2017 acquisitions of Automic Holding GmbH (Automic) and Veracode, Inc. (Veracode) contributed approximately 6.5 points of revenue growth for the quarter. GAAP EPS was negatively impacted by $0.77 from the US Tax Reform adjustment. Non-GAAP income tax expense excluded the aforementioned tax charge relating to US Tax Reform. Non-GAAP EPS was positively impacted by $0.09 from a decrease in the non-GAAP effective tax rate, which is comprised of $0.05 related to a reduction in the statutory tax rate as a result of US Tax Reform and $0.04 related to other net discrete tax benefits realized.

For the nine months, the company reported total revenue of $3,152 million against $3,024 million a year ago. Income before interest and income taxes was $852 million against $920 million a year ago. Income before income taxes was $778 million against $875 million a year ago. Net income was $269 million against $618 million a year ago. Diluted income per common share was $0.64 against $1.47 a year ago. Non-GAAP income before interest and income taxes was $1,185 million against $1,186 million a year ago. Non-GAAP net income was $833 million against $815 million a year ago. Non-GAAP diluted EPS was $1.98 against $1.94 a year ago.

The company reaffirmed earnings guidance for the fiscal ending March 31, 2018. The company expects projected GAAP diluted EPS range of $1.00 to $1.10, projected non-GAAP diluted EPS range of $2.54 to $2.60, projected GAAP operating margin of 26% to 27%, projected non-GAAP operating margin of 36% to 37%, projected GAAP effective tax rate of 58% to 55% and projected non-GAAP effective tax rate of 25%. Previous guidance was a full-year GAAP and non-GAAP effective tax rate of between 28% and 29%. Previous guidance for GAAP diluted earnings per share was to decrease in a range of 8% to 5% as reported and in constant currency. Previous guidance for non-GAAP diluted earnings per share was to decrease in a range of 2% to flat as reported and in constant currency. Cash flow to increase in a range of 2% to 6% as reported and flat to 4% in constant currency. At December 31, 2017 exchange rates, this translates to reported cash flow from operations of $1.10 billion to $1.15 billion.