Computer Associates 2013 Annual Report Download - page 51

In fiscal 2013, total bookings decreased compared with fiscal 2012 in the United States and Europe, Middle East and Africa
regions and increased in the Asia Pacific Japan and Latin America regions. Total new product and mainframe capacity sales
in fiscal 2013 declined by approximately 20% compared with fiscal 2012. Within these bookings, new product and capacity
sales decreased in all regions except in the Asia Pacific Japan region.
Generally, periods with smaller renewal inventories result in a lower level of bookings both because renewal bookings will
be lower and, to a lesser extent, because renewals also remain an important selling opportunity for new products.
Mainframe new product and capacity sales were down in fiscal 2013 compared with fiscal 2012 primarily due to lower
renewals, which were down to a greater extent in the first quarter. Enterprise solutions new product sales declined primarily
due to our lower-than-expected sales of new products outside of our renewal process. Bookings performance was also
negatively affected by a difficult macroeconomic environment. During the first quarter of fiscal 2013, bookings performance
was unexpectedly disrupted by our efforts to align our sales force to execute our customer segmented go-to-market
initiative. Although our customer segmentation initiative is taking longer than anticipated to produce expected results, we
continue to believe that this initiative will benefit our performance in the long-term.
For fiscal 2012 and fiscal 2011, total bookings were $4,663 million and $4,888 million, respectively. The decrease in total
bookings was primarily a result of a license renewal agreement with a large IT outsourcer for approximately $500 million,
which was executed in the fourth quarter of fiscal 2011 and is included in subscription and maintenance bookings. This
decrease was partially offset by an increase in bookings that are recognized as software fees and other revenue. In addition,
there was an increase in professional services bookings primarily attributable to an increase in the number of professional
services engagements entered into during the fourth quarter of fiscal 2012 and to a lesser extent our fiscal 2012 acquisition
of Base Technologies.
For fiscal 2012, total bookings from new product and capacity sales increased by a low single digit percentage from fiscal
2011. The increase was primarily a result of new product sales within the Mainframe Solutions segment, which includes the
aforementioned Final License Payment. This increase was partially offset by a decrease in Enterprise Solutions segment new
product sales. Mainframe capacity sales for fiscal 2012 were consistent with fiscal 2011.
Bookings in the United States for fiscal 2012 decreased from fiscal 2011, primarily due to the aforementioned fiscal 2011
license agreement with a large IT outsourcer executed in the fourth quarter of fiscal 2011. This decrease was partially offset
by the increase in professional services bookings and the new product sales within the Mainframe Solutions segment. Total
international bookings for fiscal 2012 increased from fiscal 2011. Bookings in Latin America for fiscal 2012 increased
primarily as a result of an increase in renewals and an increase in new product and capacity sales in fiscal 2012. Bookings in
Asia-Pacific-Japan region for fiscal 2012 increased from fiscal 2011 primarily due to an increase in renewals and new
product and capacity sales. Total bookings in the Europe, Middle East and Africa region increased slightly for fiscal 2012,
primarily due to a large multi-year contract with a financial institution in Europe executed in the fourth quarter of fiscal
2012.
Subscription and Maintenance Bookings
For fiscal 2013 and fiscal 2012, subscription and maintenance bookings were $3,238 million and $3,776 million, respectively.
The decrease in subscription and maintenance bookings was primarily attributable to lower mainframe renewals, and lower
enterprise and mainframe new product sales and mainframe capacity sales reflected in subscription and maintenance
bookings. Within renewals, the decrease in mainframe renewals was primarily attributable to the composition of the renewal
portfolio. This decrease was partially offset by an increase in enterprise solutions renewals.
During fiscal 2013, we renewed a total of 52 license agreements with incremental contract values in excess of $10 million
each, for an aggregate contract value of $1,514 million. During fiscal 2012, we renewed a total of 57 license agreements with
incremental contract values in excess of $10 million each, for an aggregate contract value of $1,722 million.
For fiscal 2012 and fiscal 2011, subscription and maintenance bookings were $3,776 million and $4,256 million, respectively.
Subscription and maintenance bookings for fiscal 2011, includes a five-year license renewal agreement with a large IT
outsourcer for approximately $500 million, which was executed in the fourth quarter of fiscal 2011.
Renewal bookings, which generally do not include new product and capacity sales and professional services arrangements,
for fiscal 2013 declined by a high single digit percentage compared with fiscal 2012, which is slightly better than the previous
expectation of a decline of approximately 10%. For the fourth quarter of fiscal 2013, our percentage renewal yield was in
the low 90% range. We currently expect the value of our fiscal 2014 renewals to increase by a percentage in the high single
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