DETROIT – Business software maker Compuware Corp. on Thursday posted a quarterly profit that more than tripled as cost-cutting offset a slight drop in revenue. But as reported, Compuware failed to meet Wall Street?s expectations, posting net income of 6 cents per share rather than the 7 cents anticipated by analysts. As a result, Compuware?s stock closed Friday at $7.80 a share, down a nickel on the day.
Compuware, which makes testing, development and management software, said net income for the second quarter ended Sept. 30 rose to $24.2 million, on revenue of $292.6 million from $295.5 million in the same period a year ago, million as software and services revenue both decreased while maintenance fees rose. Total operating expenses fell to $264.4 million from $289.3 million.
In October, the company warned its second-quarter revenue would fall short of Wall Street estimates, citing widespread weakness in demand.
Revenue fell to $292.6 million from $295.5.
“Year-over-year, Compuware delivered second quarter increases in EPS of 200 percent and in total distributed product revenue of 18 percent. For the first six months of the fiscal year, EPS is up 550 percent,” said Compuware Chairman and CEO Peter Karmanos, Jr. “I am, however, not satisfied with software and services revenue for Q2, which did not show the level of momentum we wanted to see. I can assure Compuware investors and employees that I have the attention of the company’s senior management team, and that we will work very hard to improve on these results in the coming quarters.”
In May, Compuware predicted a profit for the year of 30 cents to 35 cents a share. The current average of analysts’ estimates calls for earnings of 38 cents a share on revenue of $1.31 billion for the year, besting Karmanos? rosiest projections.
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