DETROIT – Business software and services company Compuware Corp. reported last week it posted a 51 percent increase in fiscal second-quarter profit, marking a turn around from a disappointing first quarter by increasing sales of software licenses and boosting maintenance fees.

Meanwhile, IT outsourcing company, Syntel, based in Troy, reported total revenue for the third quarter increased 27 percent to $87.9 million, compared to $69.2 million in the same period a year before.

Compuware reported net income of $37.4 million, or 13 cents per share, compared with profit of $24.8 million, or 7 cents per share, in the year-ago quarter. Adjusted for $18.7 million in restructuring charges, the company said earnings per share came to 17 cents. Analysts surveyed by Thomson Financial, on average, expected profit of 10 cents per share.

Revenue rose 47 percent to $302 million, from $288.5 million last year. Analysts, on average, expected revenue of $290.6 million.

During the quarter, software license fees rose 23 percent over last year, to $70 million, while maintenance fees increased 10 percent to $116.3 million. Revenue from professional services dipped less than 1 percent, to $115.7 million.

The results followed a disappointing first-quarter report, in which both profit and revenue fell and Compuware’s Chairman and Chief Executive Peter Karmanos Jr. admitted the company had “a serious sales execution problem.” In late August, the company said it would consolidate some product development work in an effort to reduce operating costs, including moving some development work from overseas to Detroit, and eliminating about 100 jobs.

“After a near-disastrous first quarter, Compuware produced one heck of a second quarter,” Karmanos said in statement accompanying the earnings report. “These accomplishments put Compuware on strong footing for attaining its goals in fiscal year ’08.”

At Syntel, net income for the third quarter was $18.3 million or $0.44 per diluted share, compared to $14.5 million or $0.35 per diluted share in the prior-year period and net income of $13.3 million or $0.32 per diluted share in the second quarter of 2007. During the quarter, Syntel reversed a tax reserve of $3.1 million, which had the positive effect of increasing EPS by $0.07 per share.

During the third quarter, Syntel added eight new clients and launched 86 new engagements. In addition, the Company added two new “Hunting Licenses” or preferred partnership agreements, taking the total to 86.

a>>