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Let me begin with how we did in our Fiscal Year that ended March 31, 2007, followed by our plans for continuing to grow our company.

Fiscal 2007 didn't begin well. The changes we made in business processes and systems in 2006 resulted in a number of operational difficulties. We spent a good part of the first half of the year correcting these problems, and putting in place the senior management talent we needed to drive the business forward. I am pleased that we were successful in these efforts and reported an effective control environment for the fiscal year. Most importantly, we are putting in place the financial and sales management processes to properly run CA's business.

In the second quarter of Fiscal 2007 we re-oriented and resized our sales force, moving it from one that was product- and transaction-oriented to one with a focus on building customer relationships. In the process, we went from 18 to almost 800 Account Directors and Managers — senior sales professionals who own the customer relationship and are paid on selling new software and strengthening that relationship.

At the same time, we centralized the responsibility for existing customers. We created a small team of senior business managers focused solely on renewing existing contracts. We reorganized our sales force in stages, completing the process in the U.S. and parts of Europe and Asia by October, and most of the rest of the world in time for the start of the new fiscal year. With highly qualified sales people dedicated to their accounts, we learn about new opportunities faster and are able to deliver a better, more relevant solution. Customers are noticing. Our customer satisfaction, measured through our customer survey, is at a seven-year high, although I am not yet satisfied. We have more work to do.

The business problems led to a slow start, which affected our business results in the first part of the year, but it was clear by the second half that the changes we made were kicking in, and I am pleased to tell you that we ended the year strongly:

• Revenue was $3.94 billion, growing by 5%;
• Non-GAAP earnings per share were $0.88, growing by 4%*;
• GAAP earnings per share were $0.22; and
• Cash Flow from Operations came in at $1.07 billion.

Every bit as important to me as the numbers themselves is the quality of these earnings and our ability to improve visibility and predictability. These results were not an accident; they were not the result of some random variation. They were a product of the hard work of thousands of dedicated CA employees in every function of the company.

We are continuing the momentum we built up in the past fiscal year. We've moved to paying commissions to our sales people monthly, and dramatically simplifying how and what they get paid for. In fact, we were able to issue almost every salesperson in the company new targets, a defined territory and a sales plan by the second week of the new fiscal year — the fastest deployment I have ever heard of at any company.

*Click here for information concerning reconciliation of GAAP results to non-GAAP results.