The company announced preliminary results for the quarter that ended March 31, saying that it now expects to report a small profit at best. Total revenue will be between US$940 million and $950 million, down from an earlier projection of $975 million to $1 billion, CA said.

"Our results for the quarter were not in line with our expectations," John Swainson, CA's president and CEO, said in a statement. He noted, though, that the software vendor is "undergoing a transformation -- of our products, our people, our processes, our relationships with customers, our go-to-market strategy and much more."

According to CA, "a significant portion" of the revenue shortfall will be made up in future quarters. The company said it had to defer the reporting of sales made by recently acquired vendors after switching them to its subscription-based accounting model, under which revenue is recognized on a monthly basis over the life of a contract.

Fourth-quarter profits were also affected by increased sales expenses, primarily involving commissions, the company said. It added that those expense increases will be partially offset by reductions in variable compensation programs, including management bonuses.