Computer Associates 2013 Annual Report Download - page 50

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fiscal 2012 was 56% compared with 54% for fiscal 2011. The increase in Mainframe Solutions operating margin for fiscal
2012 was primarily due to the increase in revenue, partially offset by severance costs of $22 million in fiscal 2012.
FISCAL FISCAL FISCAL
ENTERPRISE SOLUTIONS 2013 2012 2011
Revenue $ 1,772 $ 1,820 $ 1,623
Expenses 1,612 1,668 1,501
Segment profit $ 160 $ 152 $ 122
Segment operating margin 9% 8% 8%
Enterprise Solutions revenue for fiscal 2013 decreased by $48 million compared with the year-ago period primarily due to
an unfavorable foreign exchange effect of $32 million and lower new product sales from prior periods. Within Enterprise
Solutions revenue, there was a decrease in revenue from our service assurance, automation and data management products,
partially offset by an increase in revenue attributable to our ITKO and Nimsoft products. Enterprise Solutions operating
margin for fiscal 2013 increased by one percentage point from 8 percent to 9 percent as a result of the income from the
aforementioned $35 million intellectual property transaction in the first quarter of fiscal 2013, which contributed two
percentage points to operating margin in fiscal 2013, as well as a decrease in severance costs compared with fiscal 2012.
These favorable items were offset by our additional investments in ITKO and Nimsoft products.
For fiscal 2012, Enterprise Solutions revenue increased $197 million from fiscal 2011 primarily due to growth in revenue
from our security (identity and access management), virtualization and service automation and service and portfolio
management products. Revenue from these products is recognized in either subscription and maintenance revenue or
software fees and other revenue. Enterprise Solutions revenue was also positively affected by $25 million from the five-year
license agreement with a large IT outsourcer executed in the fourth quarter of fiscal 2011. For fiscal 2012, Enterprise
Solutions revenue reflected a favorable foreign exchange effect of $29 million compared with fiscal 2011. Enterprise
Solutions operating margin for each of fiscal 2012 and fiscal 2011 was 8%. Operating margin was affected by an increase in
revenue for fiscal 2012, offset by the increased development investment and selling and marketing expenses within our
Enterprise Solutions segment, as well as a severance costs of $19 million in fiscal 2012.
FISCAL FISCAL FISCAL
SERVICES 2013 2012 2011
Revenue $ 382 $ 382 $ 327
Expenses 358 359 310
Segment profit $24$23$17
Segment operating margin 6% 6% 5%
Service segment expenses include cost of professional services and assigned general and administrative expenses that are not
included in the cost of professional services expense lines of the Consolidated Statement of Operations.
For fiscal 2013, Services revenue and expenses compared with fiscal 2012 remained consistent. Services operating margin
was 6% for each of fiscal 2013 and fiscal 2012.
For fiscal 2012, Services revenue and expenses compared with fiscal 2011 increased primarily as a result of our fiscal 2012
acquisition of Base Technologies. For fiscal 2012, Services revenue reflected a favorable foreign exchange effect of
$7 million compared with fiscal 2011. For fiscal 2012 compared with fiscal 2011, Services operating margin remained
consistent.
Refer to Note 17, ‘‘Segment and Geographic Information,’’ in the Notes to the Consolidated Financial Statements for
additional information.
Bookings
For fiscal 2013 and fiscal 2012, total bookings were $4,114 million and $4,663 million, respectively. The decrease in total
bookings was primarily a result of a year-over-year decline in mainframe renewals, enterprise and mainframe new product
sales and mainframe capacity sales reflected in subscription and maintenance bookings and to a lesser extent a decrease in
professional services bookings. This decrease was slightly offset by an increase in software fees and other bookings that are
or will be recognized as software fees and other revenue and were primarily driven by growth in our SaaS offerings. For
fiscal 2012, software fees and other bookings included the $39 million Final License Payment.
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