CA posts strong profits amid management shakeup

Revenue is down for FY 2014 but US vendor still consolidates gains

CA Technologies remains a company in transformation, marked by another shakeup in the management ranks and a promise by CEO Mike Gregoire to focus on growth, efficiencies and future market needs.

The announcement of several senior managers leaving came as CA posted stronger than expected Q4 profits despite shrinking sales.

According to an internal memo obtained by Channelnomics, CA's Peter Griffiths, executive vice president of the technology and development group, is departing after three years to pursue new opportunities.

His replacement is Amit Chatterjee, who will assume the title of executive vice president of enterprise solutions and the technology group.

In an executive rank reorganisation, Chatterjee will report to Gregoire. Consolidated under Chatterjee are the general managers in the enterprise group, including Russell Artzt, Jennifer Rosenberg-Baker, Peter Sheer, and John Zepecki. CTO John Michelsen will report directly to Gregoire.

Chatterjee is a significant addition to the CA management team. He has started several successful firms, and has served as an executive vice president at SAP as well as advised the White House on technology and job creation.

"These changes are intended to drive growth, sharpen our focus and fuel competitive innovation and executive discipline," Gregoire (pictured, right) wrote in the memo.

Also departing CA this week is long-time product and sales leader Adam Famularo, who served as North America channel chief for the last six months. According to a separate memo, Famularo is leaving CA of his own accord after 16 years of service, and North America sales will be headed by channel veteran Wendy Petty.

"Our channel mission and strategy remain unchanged and our commitment to you is unwavering. We have a plan in place to ensure we continue to focus on winning together and capitalising on the growth opportunities we see in North America, as well as around the world," wrote global channel chief Alyssa Fitzpatrick in a letter to partners.

CA posted stronger than expected profits for the fourth quarter, and solid revenues of $4.43-$4.49bn (£2.63-£2.67bn) for its fiscal 2014 year, which ended 31 March. While CA remains on a solid footing, it's still dealing with declining sales, including a 15 per cent decline in bookings and 2.2 per cent dip in maintenance revenue.

"We concluded a year of significant transformation and strategic progress on our journey to build CA for growth and market leadership. We have successfully executed our rebalancing program, consolidated development resources in key hubs, shifted innovation investment to new growth markets, and renewed our focus on building and delivering excellent, differentiated solutions to our customers," Gregoire said.

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