Compuware Earnings: Net Income Keeps Falling

S&P 500 (NYSE:SPY) component Compuware Corporation (NASDAQ:CPWR) reported its results for the fourth 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 Fourth Quarter

Results: Net income for Compuware Corporation fell to $27.1 million (12 cents per share) vs. $34.8 million (16 cents per share) a year earlier. This is a decline of 22.1% from the year-earlier quarter.

Revenue: Rose 6.6% to $266 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Compuware Corporation fell in line with the mean analyst estimate of 12 cents per share. Analysts were expecting revenue of $262.4 million.

Quoting Management: “Compuware has aligned itself for growth, as every one of our business units produced year-over-year revenue expansion in FY ’12,” said Compuware CEO Bob Paul. “With nearly 40 percent of revenues now generated by our high-growth solutions–APM, Changepoint and Covisint–the company is positioned to deliver meaningful increases in revenue and earnings.”

Key Stats:

Revenue has increased for four consecutive quarters. Revenue increased 2.4% to $253.1 million in the third quarter. The figure rose 15.4% in the second quarter from the year earlier and climbed 11.4% in the first quarter from the year-ago quarter.

The company has now seen its net income fall for three quarters in a row. In the third quarter, net income fell 36.5% from the year earlier, while the figure fell 12.7% in the second quarter.

The company fell in line with estimates last quarter after missing forecasts in the previous quarter with net income of 10 cents versus a mean estimate of net income of 11 cents per share.

Looking Forward: The average estimate for the first quarter of the next fiscal year remains unchanged at 8 cents a share. For the fiscal year, the average estimate has been unchanged at 40 cents a share.

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

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