DETROIT ? Computer software giant Compuware Corp said it expects its fiscal third-quarter earnings will fall about a third below Wall Street estimates when its third fiscal quarter results are announced Jan. 24. The company said its profit and sales were affected by a high ratio of “ratable versus upfront recognition” for new software licenses.
Compuware said it will earn 13 cents per share in the quarter. Excluding restructuring costs, the company said it expects to earn 14 cents per share. Analysts polled by Thomson Financial expect earnings of 18 cents per share, on average.
In the 2006 third quarter, the company earned 11 cents per share.
Compuware also said it expects its license revenue to drop 7 percent to $79 million from $86 million and its professional services revenue to fall 5 percent to $110 million from $115 million in the third quarter of 2006.
The company added maintenance revenue will likely rise 6 percent to $120 million from $114 million in the year-earlier period.
Compuware said it will report final results for its third quarter Jan. 24.
Shares fell 10 cents last Friday to close at $8.16.
Compuware said it will earn 13 cents per share in the quarter. Excluding restructuring costs, the company said it expects to earn 14 cents per share. Analysts polled by Thomson Financial expect earnings of 18 cents per share, on average.
In the 2006 third quarter, the company earned 11 cents per share.
Compuware also said it expects its license revenue to drop 7 percent to $79 million from $86 million and its professional services revenue to fall 5 percent to $110 million from $115 million in the third quarter of 2006.
The company added maintenance revenue will likely rise 6 percent to $120 million from $114 million in the year-earlier period.
Compuware said it will report final results for its third quarter Jan. 24.
Shares fell 10 cents last Friday to close at $8.16.
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