Compuware Tops Street On Profit, Misses On Revenue

DETROIT — Compuware Corp., Michigan’s biggest tech
company, said Thursday it beat Wall Street expectations with its
net income but missed them with its revenue in its fourth quarter
ended March 31.

The software developer reported revenue of $183.4 million in
the quarter, down from $184.4 million a year earlier. That missed
consensus analyst forecasts by $27.8 million, according to the
stock tracking website

Net income was $20.3 million or 9 cents a share. Last year,
Compuware reported a fourth quarter loss of $63.7 million ro 30
cents a share due to a loss on discontinued operations.

Compuware also released an adjusted net income figure of 10
cents a share. SeekingAlpha said that beat the forecast by 2
cents a share. Compuware’s adjusted earnings exclude share-
based compensation expense; the amortization of intangible
assets; a goodwill impairment charge; restructuring charges;
advisory fees associated with shareholder actions; the related
tax impacts of these items; and gains on divestitures, net of tax.

Wall Street took the news of the revenue miss with a yawn, as
Compuware stock was up 2 cents or 0.2 percent to $10.41 a
share in after-hours trading. It finished the day down 3 cents or
0.3 percent to $10.39 during the regular trading day.

Among components of revenue for the quarter, new software
license fees — an important indicator of future growth — were
$43.7 million, up 5.8 percent from a year earlier. Maintenance
fees were $87.7 million, down 1.3 percent. Subscription fees
were $19.8 million, down 2.6 percent. And services fees were
$7.9 million, down 4.4 percent. Application services fees were
$24.4 million, down 5.1 percent.

For the year, revenue was $720.8 million, virtually unchanged
from $720.9 million a year earlier. Software license fees were
$159.2 million, flat from the prior year. Maintenance fees were
$353.4 million, down 2.2 percent from the prior year.
Subscription fees were $80.9 million, up 1.2 percent.
Professional services revenues were $30.2 million, down 8.2
percent. And application services fees were $97.1 million, up 7.1

For the year, net income was $71.6 million or 32 cents a share,
compared to a loss of $17.3 million or 8 cents a year in the prior
fiscal year.

For the current fiscal year, which ends next March, Compuware
said it is expecting total revenue to be between $720 million and
$735 million, adjusted earnings per share of 41 to 45 cents, and
cash flow from operations of $105 million to $110 million.

Compuware is in the process of selling its professional services
business and its Changepoint project management and Uniface
software units to a California private equity firm, Martin Equity

To listen to a replay of a conference call discussing these
results, call (800) 475-6701 in the United States or (320) 365-
3844 elsewhere, using the pass code 324275.

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