Compuware Corporation (CPWR) posted a net income of income of $16.9 million or $0.08 in the first quarter of fiscal 2012 per share compared to a net income of $34.8 million or $0.16 cents per share in the fourth quarter of fiscal 2011 and a net income of $12.6 million or $0.06 in the year-ago quarter. The results surpassed management’s guidance range of $0.05 – $0.07 and the Zacks Consensus Estimate of $0.06.
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 $229.9 million, up 11% year over year. On a segment basis, revenues from software license fees increased 2% year over year to $34.1 million. Revenues from maintenance and subscription fees came in at $126.1 million, up 8.0% from the year-earlier quarter. Revenues from professional services were up 24.0% year over year to $69.7 million.
Management stated that two significant Mainframe deals slipped out of the fourth quarter last year. Out of the smaller of these deals, the financial services agreement closed in the first quarter.
Covisint (Compuware markets its application services under the brand name Covisint) revenues increased 43.8% year over year to $16.2 million. Application Performance Management (comprising Vantage and Gomez) license fees and subscription were up 40.6% year over year. Uniface license fees came in at $10.9 billion.
Operating expenses came in at $210.4 million, higher than management expectations. The weakening of the U.S. dollar fueled this increase with currency impacting total operating expenses by approximately $7 million.
Operating margin declined to 9.0% from 11.0% in the year-ago quarter and 15.1% in the year-ago quarter.
Guidance
For the second quarter of fiscal 2012, the company expects EPS of $0.08 to $0.10.
For fiscal 2012, management expects revenues to come around $1.06 billion. Management projects GAAP EPS of $0.50 to $0.54, down from the previous forecast of $0.53 – $0.57, primarily due to the purchase accounting impact of dynaTrace acquisition.
Cash flow from operations is expected to range within $160 million-$175 million.
On July 6, 2011, Compuware acquired Boston-based rival dynaTrace software for $256 million.
Privately-held, dynaTrace employs 180 people and generated revenues of $26 million in the last twelve months. The company is expected to add approximately revenues between $35 million and $45 million to the Compuware’s top-line in FY12. In FY13, Compuware expects a contribution of $100 million to the top-line.
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