DETROIT – Compuware Corp. said its fiscal fourth-quarter earnings fell below analysts’ estimates because of delays in closing two contracts for mainframe computers. Compuware expects its earnings for the period to range from 13 to 15 cents per share ? Wall Street analysts were looking for 19 cents.
As a result, Compuware shares shed 54 cents, or 4.8 percent, to $10.65 in extended trading Wednesday after the Detroit-based company released its preliminary results for the three months ended in March. The shares had gained 23 cents, or 2.1 percent, to close at $11.19 in the regular session.
Bob Paul, Compuware’s chief operating officer, blamed Compuware’s earnings shortfall on “circumstances beyond on our control.” He said the political haggling over the federal budget caused one agency to hold off on signing one deal and that a major bank had postponed signing a contract while it reviewed its own finances. The delays cost Compuware about $60 million in contract commitments and trimmed its earnings by 4 cents to 5 cents per share.
The company didn’t provide any details about its total revenue for the quarter. It didn’t say when it will release its financial statement for the quarter.
Paul indicated the delayed contracts will be signed before March 2012 to help boost earnings in the current fiscal year.
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