Compuware Corp Earnings: Net Income Falls Again

S&P 500 (NYSE:SPY) component Compuware Corporation (NASDAQ:CPWR) reported its results for the third quarter. Compuware provides software products and professional services that improve the performance of information technology organizations.

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Compuware Earnings Cheat Sheet for the Third Quarter

Results: Net income for Compuware Corporation fell to $21.6 million (10 cents per share) vs. $34 million (15 cents per share) a year earlier. This is a decline of 36.5% from the year earlier quarter.

Revenue: Rose 2.4% to $253.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CPWR fell short of the mean analyst estimate of 11 cents per share. It fell short of the average revenue estimate of $259.1 million.

Quoting Management: “The growth Compuware delivered across its business in Q3 confirms that we have built the right portfolio for consistently increasing revenue and earnings going forward,” said Compuware CEO Bob Paul. “Compuware remains poised to deliver its largest year-over-year increase in full-year revenues in a dozen years, and we will use those results as a catapult into a profitable year of growth in FY ’13. To immediately optimize our ability to do so, we have sharply focused our team on enhancing sales execution and better expense management throughout the organization.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 15.4% to $260.7 million in the second quarter. The figure rose 11.4% in the first quarter from the year earlier and climbed 8.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 12.7% from the year earlier quarter.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 10 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 19 cents a share to 17 cents over the last ninety days. For the fiscal year, the average estimate has moved down from 52 cents a share to 41 cents over the last ninety days.

Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), CA, Inc. (NASDAQ:CA), Intl. Business Machines Corp. (NYSE:IBM), Quest Software, Inc. (NASDAQ:QSFT), BMC Software, Inc. (NASDAQ:BMC), Novell, Inc. (NASDAQ:NOVL), Red Hat, Inc. (NYSE:RHT), Microsoft Corporation (NASDAQ:MSFT), OPNET Technologies, Inc. (NASDAQ:OPNT), and Sybase, Inc. (SY).

Stock Performance: Shares of CPWR were down 1.2% from the previous close.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com