The company reported a net loss of $44m (£27m) on revenue of $778m (£479m) for the quarter ending 31 December 2002, compared with a net loss of $231m on revenue of $747m for the same period last year.
"We saw some evidence of an improving economic environment, yet customers continued to be prudent with their technology investments," CA chairman and chief executive officer Sanjay Kumar said.
The company cited its flexible licensing model, an increase in licence transactions and strong European sales in helping it narrow losses for the quarter.
However, the company said that the adoption of new accounting rules in the beginning of its financial year that eliminated the amortisation of goodwill and other intangible assets affected its results for the period.
Business was good in Italy, France and Germany, while the Asia-Pacific region and Latin America were steady. CA said 38% of US revenue came from customers outside North America.
Almost half of CA's revenue came from sales of its enterprise management products, with software for doing business online pulling in 21% of revenue and security software accounting for 20%.
CA wants to be recognised more for its storage products, and the company is planning a marketing drive to promote this area of its business.
The company predicted revenue for its fourth quarter of 2003 would range between $785m to $800m.