DETROIT – Compuware Corp., which makes software to manage mainframe computers and large networks, said Thursday that its profit surged in its fiscal first quarter on lower costs and higher revenue.
For the three months ended June 30, Compuware earned $24.6 million, or 6 cents per share, a sharp increase from $644,000, or break even per share, a year ago. The 2004 period included higher costs for license fees, professional services, technology development and administrative operations, along with smaller other income.
Revenue grew 4 percent to $297.3 million from $287.1 million, driven by higher license revenue and maintenance income. Software license fees increased nearly 26 percent.
Analysts expected a slightly smaller profit of 4 cents per share on sales of $291.6 million, according to a Thomson Financial survey. Wall Street responded accordingly, driving up Compuware?s share price by 3.65 percent to $7.95 in after hours trading.
?Compuware delivered a good first quarter, featuring year-over-year increases in software license fees, maintenance fees and total revenues,? said Compuware Chairman and CEO Peter Karmanos, Jr. ?Further strengthening these results, Compuware?s Q1 numbers contain absolutely no dollars from the IBM settlement. For the remainder of the fiscal year, Compuware?s executive leadership will focus on continuing to improve the company?s growth rate and, through that growth, increasing Compuware?s operating margin.?
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