DETROIT – Compuware Corp. reported Tuesday that its fourth-quarter earnings more than doubled and beat Wall Street estimates as a drop in expenses outpaced lower revenue. The company also established a CEO succession plan.

The software and information technology services company based in downtown Detroit said its net income climbed to $56.4 million, or 15 cents per share, compared with $26.7 million, or 7 cents per share, in the year-ago quarter. Analysts polled by Thomson Financial forecast more modest earnings of 13 cents per share.

Revenue fell 3 percent to $309 million and missed Wall Street’s target of $313.1 million. Software license fees fell 5 percent to $81.8 million, maintenance fees were flat at $107.7 million, and professional service fees declined 3 percent to $120 million. Total operating expenses fell 7 percent to $266.9 million.

For fiscal 2006, net income rose 87 percent to $143 million, or 37 cents per share, from $76.5 million, or 20 cents per share. Revenue fell 2 percent to $1.21 billion.

“I’m pleased that Compuware demonstrated robust earnings growth for the

fiscal year,” said Compuware Chairman and CEO Peter Karmanos, Jr. “The

entire Compuware management team understands that we must use these solid

results as a launching pad for delivering revenue and earnings growth in

the fiscal year ahead.

“To ensure the company achieves these goals while planning for my

succession,” Karmanos said, “the Compuware Board of Directors recently

established the Office of the Chairman. Consisting of me, CFO Laura

Fournier, President and COO of Products Hank Jallos and President and COO

of Covisint Bob Paul, the Office of the Chairman will refine and

successfully implement Compuware’s strategy for accelerating growth. Over

time, the Board of Directors and the Office of the Chairman will work

together to identify a potential candidate to assume the role of CEO.”

Despite the positive financial news, Compuware?s shares traded down a nickel a in after hours trading to close at $7.29. The company’s shares have traded in a range of $6.08 to $9.99 in the past year.

For more information, click on Compuware.Com

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