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CA posts quarterly loss on acquisition, tax reform charges

CA Inc. reported a net loss in the third quarter of fiscal 2018 despite posting higher revenue, after incurring charges from acquisitions and the recently enacted tax law.

The software company recorded a net loss of $93 million, or a loss of 23 cents per diluted share, in the three months that ended Dec. 31, 2017, compared with net income of $208 million, or 50 cents per diluted share, in the same period in fiscal 2017.

Income tax charges for the third quarter rose to approximately $375 million from $84 million in the year-ago quarter. This figure includes a preliminary estimate of $318 million in tax expense as a result of the tax changes.

The company also saw its operating expenses increase due to $84 million in costs from the acquisitions of Automic Holding GmbH and Veracode, Inc.

Total revenue rose 9% to $1.09 billion in the third quarter from $1.01 billion in the same quarter of fiscal 2017. The increase came on the back of higher software fees.

Revenue from the mainframe solutions segment grew to $552 million in the third quarter from $546 million in the year-ago period due to a favorable foreign exchange effect.

The enterprise solutions unit also saw its third-quarter revenue jump to $461 million from $389 million in the year-ago quarter.