Most impressive about CA Technologies (CA) is that its net income for the first fiscal quarter ended June 30 rose 42% to $335 million. Perhaps Michael Gregoire taking over as CEO and cutting costs had something to do with the growth.
Prior to that announcement, shares of CA were up 30% year-to-date so it appears this may be the beginning of a second chapter of steady gains.
CA is involved in a rapidly growing and necessary part of IT. It’s called Data Center Infrastructure Management or DCIM. Rather than go into eye-glazing detail about what it does, let’s just focus on its staggering market potential. Fewer than 10% of mid- to large-sized data centers utilize it, and 451 Research says DCIM supplier revenue will reach $1.8 billion by 2016, representing a 44% compound annual growth rate.
While migrating away from mainframe services, ala IBM, the DCIM provider is also focusing on growing its cloud market share. Cloud is estimated to become a $148.8 billion global market in 2014, $160 billion in 2015, and $207 billion in 2016.
Known for having a strong pipeline and healthy financial books, it also delivers an impressive 4.5% dividend.