Compuware Corporation (CPWR) posted a net income of income of $34.8 million or 16 cents per share in the fourth quarter of fiscal 2011, compared with a net income of $37.4 million or 16 cents per share in the year-earlier quarter. The results surpassed management’s guidance range of 13 cents-15 cents and the Zacks Consensus Estimate of 14 cents.
Michigan-based Compuware Corporation provides software products and professional services to many of the largest users of information systems across the world.
Revenues came in at $249.6 million, up 8.5% year over year and 1% sequentially, lagging behind the Zacks Consensus Estimate of $260 million.
Segment wise, revenues from software license fees increased 7.4% year over year to $55.7 million. Revenues from maintenance and subscription fees came in at $124 million, up 5.2% from the year-earlier quarter. Revenues from professional services were up 15.9% year over year to $69.9 million.
Covisint (Compuware markets its application services under the brand name Covisint) revenues increased 65.6% year over year. Application Performance Management (comprising Vantage and Gomez) license fees and subscription were up 54% year over year. Uniface license fees climbed 76.7% year over year. Changepoint license fees grew 14.3% year over year.
Operating margin improved to 15.1% from 12.2% in the year-ago quarter.
Fiscal 2011 Highlights
The company generated total revenue of $928.9 million in fiscal 2011, up 4.1% from the previous year. There was a growth in revenues across all segments.
Application Performance Management (APM) license and subscription fees soared 91.7% year over year to $145.5 million. Covisint revenues jumped 36% year over year to $55.0 million, attributable to strong growth in healthcare space.
Management witnessed a strong growth in APM and Covisint businesses. Further, Mainframe maintenance base exhibited steadiness and Compuware’s Professional Services, Changepoint and Uniface businesses revitalized in fiscal 2011.
Adjusted earnings per share were 48 cents compared with 40 cents in the previous year.
Guidance
For the first quarter of fiscal 2012, the company expects EPS of 5 cents to 7 cents.
For fiscal 2012, management expects revenues to increase 10% to $1.02 billion. The company forecasts an increase of 35% in combined APM new license and subscription fees.
Management projects GAAP EPS of 53 cents to 57 cents, implying a year-over-year increase of 10% to 19%. Effective tax rate is expected at 34%.
Cash flow from operations is expected to range within $160 million-$175 million.
Going forward, the company will continue to drive growth on the back of its ability in solving key business problems in application performance management and secure collaboration markets.
Moreover, Compuware expects revenues, earnings per share and operating cash flow to increase in fiscal 2012, due to its focus on profitability in Mainframe Solutions, Professional Services and Uniface.
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