Total Products Revenue Excluding Divested Products Increases Sequentially and Year-over-year
January 28, 2010: 04:13 PM ET
- Earnings per share reach 11 cents per share (GAAP), 12 cents per
share (Non-GAAP)
- Momentum of key growth drivers accelerates as Vantage license
fees increase 9.5 percent year-over-year, 65.6 percent
sequentially; Covisint revenues increase 22.6 percent
year-over-year
- Professional services margins reach 12 percent excluding
Covisint; revenues increase sequentially
- Gomez Web Performance Division reaches record bookings of
$21.8M between October and December of 2009
DETROIT, Jan. 28, 2010 -- Compuware Corporation (Nasdaq:CPWR) today announced final financial results for its third quarter ended December 31, 2009.
"Compuware's third quarter performance featured solid execution against each of our key growth drivers, as well as strong profitability and cash flow," said Compuware President and Chief Operating Officer Bob Paul. "Our strategy of streamlining operations and increasing focus on areas where we have industry leadership is working, and Compuware is well-positioned to deliver continued progress in financial performance."
During the company's third quarter, software license fees were $52.0 million compared to $53.1 million (excluding divested products) and $60.5 million (as reported) in the third quarter last year. Maintenance and subscription fees were $117.6 million in the third quarter compared to $108.5 million (excluding divested products) and $116.6 million (as reported) in the third quarter last year. Revenue from professional services in the third quarter was $60.3 million, compared to $91.5 million in the same quarter last year.
"The acquisition and integration of Gomez makes Compuware the only provider of a single dashboard that optimizes application performance across the web, the Cloud and the enterprise," continued Paul. "This unique value proposition is winning with customers, prospects and analysts, as demonstrated by the acceleration of Vantage revenue and the strength of Gomez' performance. We're also achieving great traction with Covisint and our SaaS solutions, highlighted by Covisint's revenue growth of more than 22 percent."
Third Quarter Fiscal Year 2010 Highlights
During the third quarter, Compuware:
- completed its acquisition of privately-held Gomez, Inc. and then
announced the first integration between Vantage and Gomez,
allowing Compuware to deliver an unmatched and unified solution
for optimizing application performance across the Enterprise and
the Internet. Ovum, a leading analyst firm, cited the acquisition
as expanding and redefining application performance management.
- launched an extraordinary Mainframe Cost Savings Program for its
Mainframe Solutions customers. As part of the program, customers
receive a free cost-savings assessment, a roadmap to future
mainframe operational costs savings and the opportunity to win a
grand prize of $1 million (USD).
- announced that recently retired General Motors' CIO Ralph
Szygenda joined the Compuware Board of Directors.
- joined the Cisco Developer Network as a Solution Developer and
announced that Compuware Vantage successfully completed Cisco
verification testing for integration with the Cisco Network
Analysis Module (NAM) product line.
- simplified the IT project and portfolio management process by
delivering multiple enhancements accelerating user adoption of
its Changepoint application. These enhancements extend usability
in the critical area of project management and minimize the time
and cost associated with integrating data into Changepoint.
- offered online retailers free Gomez web performance monitoring
and consulting services from Black Friday through Cyber Monday to
identify and resolve the source of Web site errors, outages or
slowdowns to optimize performance. Compuware Gomez also reported
the mobile and web site performance data for the United States'
top retailers and offered tips to consumers to ensure they could
shop successfully.
- announced the availability of the Compuware Financial Analysis
Support Tool (F.A.S.T.), which calculates the financial impact of
web page load times. F.A.S.T. helps companies calculate how much
revenue is at risk from slow web page load times.
- announced that the National Hockey League(R) (NHL) would discuss
at the Gartner Data Center Conference how Compuware's end-to-end
application performance management solutions are helping to
deliver peak application performance to millions of NHL(R) hockey
fans worldwide.
- launched a new initiative to increase the profitability of mobile
data service providers by empowering them to improve and manage
the customer data experience. Compuware Vantage for Mobile is the
first integrated solution to provide a real-time view of a
customer's mobile data services experience and linking it back to
key business functions.
- announced that its Covisint subsidiary launched AppCloud, a
secure application marketplace that allows healthcare technology
providers to offer their solutions to Covisint communities.
- released Hiperstation 7.8, the centerpiece of Compuware's
Application Auditing solution. This new version allows
organizations to more effectively protect against internal data
breaches - across platforms - averting monetary losses and meeting
regulations including PCI and HIPAA.
- monitored the home pages of 14 top U.S.-based retailers from
November 1-15 with its Gomez technology, testing from different
geographies and mobile carriers to measure their response times
and availability when accessed from a popular cell phone.
- published a new whitepaper entitled "Who Moved My App? How to
Achieve Effective Application Performance in a Virtualized
World." The paper details what IT organizations should look for
in an application performance management solution to ensure
success in virtualized environments.
- published a whitepaper prepared by analyst firm Enterprise
Management Associates that assesses Compuware's unified approach
to combining Enterprise and Internet management visibility:
"Compuware, Gomez and the New Application Dynamic: Managing
Application Performance in the Internet Era."
- announced the release of Gomez Active Data Center, which connects
Gomez's "outside-in" end-user web performance monitoring with
"behind-the-firewall" infrastructure monitoring systems to
provide an integrated view of application performance and IT
service delivery across the Enterprise and the Internet.
- announced that Compuware Gomez and OpSource(tm), the leader in
cloud operations, signed a partnership agreement under which
OpSource will resell Gomez's web performance management solution
to its enterprise customers as well as use it to validate and
monitor its own cloud performance service level agreements.
- announced that Brooks Brothers, America's iconic clothing
retailer, is ensuring that quality and speed of its web site is
on par with the caliber of its in-store service with the help of
web load testing and web performance management solutions from
Compuware Gomez.
- announced that its Covisint subsidiary won a Healthcare IT
Innovation(TM) Award in the "Solution With The Greatest Market
Potential" category at the Healthcare IT Summit.
- announced that Compuware Changepoint was named a Fall 2009
Recognized Innovator winner - Innovator in Service Economics - by
the Association for Services Management International, the
Service & Support Professionals Association and the Technology
Professional Services Association.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the financial information included in and following this press release uses non-GAAP measures for revenue, operating expenses and earnings per share. Compuware management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Compuware's ongoing core operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in operating and evaluating its business and as such has determined that it is important to provide this information to investors. A reconciliation of non-GAAP to GAAP information is contained in the financial statements following this press release.
Compuware Corporation
Founded in 1973, Compuware provides software, experts and best practices to ensure applications work well and deliver business value. Compuware helps CIOs optimize end-to-end application performance for leading businesses around the world, including 46 of the top 50 Fortune 500 companies and 12 of the top 20 most visited U.S. web sites. Learn more at: http://www.compuware.com.
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