DETROIT – Compuware shares fell by as much as 12.5 percent on Tuesday after the company warned Monday after Wall Street closed that fiscal first-quarter financials will miss estimates yet another software company reporting disappointing earnings.
Compuwares stock price tumbled opened as low as $5.26 a share early in the session, only to rebound to about $5.40 a share late in the day.
“In our view, a solid first quarter was imperative for Compuware to show investors that management can execute and that the company has indeed turned a corner,” said Banc of America Securities analyst Kirk Materne. “As a result, we believe shares will remain under pressure until the company can demonstrate more consistent execution.
Compuware now expects to post break-even results for the quarter ending June 30, on sales of some $286 million. In the same quarter a year earlier, the company earned 1 cent a share on sales of $306 million.
On average, analysts had expected the company to post earnings of 3 cents a share on sales of $313.8 million.
“We did not meet street estimates for Q1 earnings due to lower than expected new software license sales,” said Compuware Chairman and CEO Peter Karmanos, Jr. “Regardless of this start, I remain extremely confident that Compuware will achieve the full-year guidance we provided on our most recent conference call.”
Compuware will announce final results for its fiscal 2005 first quarter on July 22, 2004.
