DETROIT – Shares of Compuware Corp. have been trading lower since the information technology provider said it issued estimates for second-quarter profit and revenue that fall below Wall Street predictions.
Compuware’s shares fell by a quarter on Thursday when the news was announced, and have been hovering from $7.80 to $7.60 a share since.
Michigan?s largest pure play IT company said it expects a profit of 7 cents per share, compared to 6 cents per share during the same period last year.
Compuware estimated revenue at $288 million, down 3 percent from $296.6 million last year, due to weaker license sales.
Analysts were expecting a profit of 8 cents on revenue of $300.9 million, according to a poll by Thomson Financial.
The company said total products revenue during the quarter was about $171 million, including $56 million in license fees and about $115 million in maintenance fees. That compares with license fees of $63.6 million and maintenance fees of $110.9 million in the year-ago period.
Compuware said Europe and mainframe capacity accounted for the majority of the weakness in license sales.
The company said it stated earlier this year the second-quarter would be “challenging” but expects better results during the second half of the year.
Company shares dropped 56 cents, or 7.1 percent, to $7.28 during premarket electronic trading on the INET, after closing at $7.84 on the Nasdaq on Wednesday.
