DETROIT – Compuware said late Thursday that its fiscal second-quarter profit fell to $21.6 million, or 8 cents a share, from $37.4 million, or 13 cents a share, in the year-ago period. Analysts surveyed by FactSet Research estimated a quarterly profit of 9 cents a share. Revenue fell to $269.8 million from $302 million last year.
During the company’s second quarter, software license fees were $42.3 million, compared to $70.0 million in the same quarter last year. Maintenance fees recognized in the quarter were $124.7 million, compared to $116.3 million in Q2 last year. Revenue from professional services in the quarter was $102.8 million, compared to $115.7 million in the same quarter last year.
“During a challenging Q2, Compuware generated $127.1 million in total product commitments, compared to $128.9 million in a strong second quarter last year,” said Compuware CEO Bob Paul. “In particular, total maintenance commitments — a figure that includes deferred maintenance fees not recognized in the quarter — were excellent, with $90.4 million in maintenance contracts and renewals in Q2, compared to $71.6 million in the same quarter last year.
“In addition to these underlying strengths in the quarter, Compuware’s business pipeline remains robust,” continued Paul. “A halt in technology purchasing at the end of the quarter pushed a substantial number of opportunities into Q3 and Q4. The entire Compuware sales team continues to pursue these — and other — active opportunities to ensure success for Compuware and its customers in the last half of the fiscal year.
“The company’s transformational Compuware 2.0 initiative continues to have a positive impact on operations,” said Paul. “Additionally, we remain on track to launch the company’s long-term strategy in late November. Through this plan, Compuware will deliver a significant opportunity for growth and improved organizational efficiency.”
In a conference call with reporters, CEO Peter Karmanos said the company was still in good shape, but “our second quarter performance simply reflects an environment when worldwide purchasing came to a complete standstill. Our fundamentals remain sound and maintenance, our biggest source of revenue, showed its biggest year over year growth that we’ve had in several years. That’s important because maintenance is extrremely profitable and repeatable.”
CFO Laura Fournier said Compuware is sitting on a cash hoard of $160 million, with another $150 million line of credit, expandable to $300 million, available if needed. She said the company expects third quarter cash flow of $40 million.
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