DETROIT, Jan. 11 /PRNewswire-FirstCall/ -- Compuware Corporation
(Nasdaq: CPWR) today announced preliminary financial results for its
quarter ended December 31, 2007.
"Compuware's products division had a good Q3, demonstrated by the $35
million year-over-year increase in total product commitments," said
Compuware Chairman and CEO Peter Karmanos, Jr. "There was a high ratio of
ratable versus up-front recognition for new software licenses in the
quarter, and this resulted in lower than expected revenue and EPS for Q3.
However, we all know that this is great for the long-term health of the
business.
"Q3 also featured great cash flow from operations and an approximate
$14 million year-over-year reduction in total operating expenses, before
restructuring costs," continued Karmanos. "We will continue our efforts to
systematically contain costs and will do what is necessary to drive
revenues going forward."
The following financial metrics are for the quarters ending December
31, 2007 and 2006 (in millions, except earnings per share). All amounts are
based on preliminary results.
2007 2006 Change
Total product commitments* $ 204 $ 169 $ 35
License revenue $ 79 $ 86 $ (7)
Maintenance revenue $ 120 $ 114 $ 6
Professional services revenue $ 110 $ 115 $ (5)
Operating expenses $ 263 $ 272 $ (9)
Operating expenses, before restructuring
costs* $ 258 $ 272 $ (14)
Earnings per share $ 0.13 $ 0.11 $ 0.02
Earnings per share, before restructuring
costs* $ 0.14 $ 0.11 $ 0.03
Cash flow from operations $ 50 $ 21 $ 29
* Non-GAAP financial information
Compuware will announce final results for its fiscal 2008 third quarter
on January 24, 2008.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally
accepted accounting principles, or GAAP, this press release uses non-GAAP
measures of operating expenses, earnings per share and revenue. The
operating expense and earnings per share disclosures on a non-GAAP basis
excluded the impact of restructuring charges. The non-GAAP revenue
disclosures provide information on total product commitments. Compuware
management believes the non-GAAP financial information provided in this
release is useful to investors' understanding and assessment of Compuware's
ongoing core operations and prospects for the future. The presentation of
this non-GAAP financial information is not intended to be considered in
isolation or as a substitute for results prepared in accordance with GAAP.
Management uses both GAAP and non-GAAP information in operating and
evaluating its business and as such has determined that it is important to
provide this information to investors. A reconciliation of non-GAAP and
GAAP earnings is continued in the financial statements following this
release.
Compuware Corporation
Compuware Corporation (Nasdaq: CPWR) maximizes the value IT brings to
the business by helping CIOs more effectively manage the business of IT.
Compuware solutions accelerate the development, improve the quality and
enhance the performance of critical business systems while enabling CIOs to
align and govern the entire IT portfolio, increasing efficiency, cost
control and employee productivity throughout the IT organization. Founded
in 1973, Compuware serves the world's leading IT organizations, including
more than 90 percent of the Fortune 100 companies. Learn more about
Compuware at http://www.compuware.com.
Press Contact
Lisa Elkin, Vice President, Communications and Investor Relations,
+1-313-227-7345
Certain statements in this release that are not historical facts,
including those regarding the Company's future plans, objectives and
expected performance, are "forward-looking statements" within the meaning
of the federal securities laws. These forward-looking statements represent
our outlook only as of the date of this release. While we believe any
forward- looking statements we have made are reasonable, actual results
could differ materially since the statements are based on our current
expectations and are subject to risks and uncertainties. These risks and
uncertainties are discussed in the Company's reports filed with the
Securities and Exchange Commission. Readers are cautioned to consider these
factors when relying on such forward-looking information. The Company does
not undertake, and expressly disclaims any obligation, to update or alter
its forward-looking statements whether as a result of new information,
future events or otherwise, except as required by applicable law.
COMPUWARE CORPORATION AND SUBSIDIARIES
PRODUCT COMMITMENTS
(In Millions)
All amounts are based on preliminary results. Final numbers will be
announced at our conference call on January 24, 2008.
QUARTER ENDED QUARTER ENDED
December 31, December 31,
2007 2006 Change
License revenue $79 $86 $(7)
Change in deferred license 14 1 13
License contracts entered into during
period 93 87 6
Maintenance revenue 120 114 6
Change in deferred maintenance (9) (32) 23
Maintenance contracts & renewals
entered into during period 111 82 29
Total products commitments during
period $204 $169 $35
As Compuware continues to emphasize solution selling, and given the
terms of such contracts, the likelihood that software transactions will be
recognized ratably over the maintenance term has increased. Therefore to
understand the health of Compuware's software business, we believe it is
important to consider the amount of product commitments during the reported
periods.
COMPUWARE CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP INFORMATION
(In Millions, except Earnings Per Share)
All amounts are based on preliminary results. Final numbers will be
announced at our conference call on January 24, 2008.
QUARTER ENDED QUARTER ENDED
December 31, December 31,
2007 2006 Change
Operating expense reconciliation:
GAAP operating expenses $263 $272 $(9)
Restructuring costs 5 5
Operating expenses, as adjusted $258 $272 $(14)
EPS reconciliation:
GAAP diluted earnings per share $0.13 $0.11 $0.02
Restructuring costs, net of tax 0.01 0.01
Diluted earnings per share, as
adjusted $0.14 $0.11 $0.03
SOURCE Compuware Corporation
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Related links:
http://www.compuware.com
http://www.prnewswire.com/comp/112310.html /
CONTACT:
Lisa Elkin, Vice President, Communications
and Investor Relations, +1-313-227-7345
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