CA To Lay Off 1,000 After Issuing Earnings Warning

The restructuring effort will be substantially completed by the end of the second fiscal quarter, which closes Sept. 30, according to a filing with the Securities and Exchange Commission. The company provided no additional information about where the staff cuts would be made.

"These actions are intended to better align the company's cost structure with the skills and resources required to more effectively pursue opportunities in the marketplace and execute the company's long-term growth strategy," CA said in the Form 8-K filed today. CA said it now expects per-share earnings for all of fiscal 2010 in the range of $1.46 to $1.57 on a GAAP basis in constant currency.

CA said it would take a pretax charge of about $50 million, including $47 million for severance costs and $3 million for global facilities consolidation. The software developer will incur most of the charge in fiscal 2011.

Shares of CA stock were trading down more than 5 percent this morning to $22.65 per share.

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In its third quarter ended Dec. 31, CA reported sales of $1.13 billion, up 8 percent from the same period one year earlier (up 4 percent in constant currency).

CA is trying to capitalize on the growing adoption of cloud computing by assembling a line of system and network management tools for cloud computing environments. Last month CA acquired Nimsoft, a developer of IT performance and system availability monitoring technology, for $350 million, and 3Tera, a supplier of cloud application deployment and configuration tools, for an undisclosed sum.

In January CA named William McCracken to be the company's new CEO, replacing John Swainson who retired at the end of 2009.