) posted a net income of $21.6 million or 10 cents per share in the
third quarter of fiscal 2012 compared to a net income of $22.7
million or 10 cents in the second quarter of fiscal 2012 and a net
income of $34.0 million or 15 cents per share in the year-ago
The results failed to meet management's guidance range of 11
cents -13 cents and the Zacks Consensus Estimate of 11 cents per
Michigan-based Compuware Corporation provides software products
and professional services to many of the largest users of
information systems across the world.
Revenues came in at $253.1 million, up 2.5% year over year but
down 2.9% sequentially. Software license fees came in at $57.1
million, down 5.1% year over year. Maintenance and subscription
fees were $126.7 million in the third quarter, increasing 2.1% year
Revenue from professional services in the third quarter was
$50.6 million, up 4.8% year over year.
Application services revenues increased 29.2% year over year to
Operating cash flow came in at $41.9 million. Operating expenses
totaled $220.5 million, rising from $197.5 million in the previous
quarter. Operating margin declined to 12.9% from 20.0% in the
year-ago quarter and dropped from 14.6% in the previous
Effective tax rate of the third quarter came in at 34.2%.
Exiting the third quarter of fiscal 2012, cash and cash
equivalents amounted to $82.2 million rising marginally from $81.9
million in the previous year period.
For fiscal 2012, management projects EPS of 40 cents - 42 cents
primarily attributable to strong revenue yields, operational
expenditure cuts and sales execution strategies. Cash flow is
expected to come at $165 million - $175 million.
Major cost reduction and production efficiency strategies
implemented by management are expected to keep operating expenses
between $880 million and $890 million by the end of fiscal
Due to favorable effects from tax settlements on a number of
audit issues, effective tax rate for the next quarter is forecast
to be within 34% which would hopefully keep the tax rate for fiscal
year 2012 at around 33.4%.
COMPUWARE CORP (
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