Compuware Increases Year-over-year Earnings Per Share 17 Percent to 55 Cents; Business Service Delivery Strategy Positions Company for Further Earnings Growth

• Press Release
• Source: Compuware
• On 4:31 pm EDT, Thursday May 14, 2009

 * Income from operations increases 28 percent year-over-year to
   $185.1 Million

 * FY '09 cash flow from operations of $232.0 million exceeds guidance

 * Fiscal discipline reduces year-over-year operating expense by
   $179.4 million

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DETROIT, May 14, 2009 (GLOBE NEWSWIRE) -- Compuware Corporation (Nasdaq:CPWR - News) today announced final financial results for its fourth quarter and fiscal year ended March 31, 2009.

"Our Compuware 2.0 initiative has made Compuware a healthier, more focused business and poised the company for long-term, meaningful growth in earnings," said Compuware President and Chief Operating Officer Bob Paul. "With a smaller and more profitable Professional Services business and a more focused and strategic product portfolio, our potential for success has never been greater. Through our Business Service Delivery approach, we will capitalize on our market leadership position in end-to-end application performance to meet the growing and ever-more critical demand that applications deliver value back to the business."

Fiscal Year 2009 Results

During the fiscal year ended March 31, 2009, revenues were $1.09 billion, compared to $1.23 billion in the previous fiscal year. Net income was $139.6 million, up from $134.4 million in fiscal 2008. Earnings per share were 55 cents, an increase of 17 percent from 47 cents in fiscal 2008, based upon 252.4 million and 287.6 million shares outstanding, respectively.

During fiscal 2009, software license fees were $219.6 million, and maintenance revenue was $479.5 million. Professional services fees for fiscal 2009 were $391.4 million.

Fourth Quarter Fiscal 2009 Results

During the fourth quarter, revenues were $253.4 million. Net income was $48.4 million, and earnings per share were 20 cents. During the company's fourth quarter, software license fees were $55.5 million, and maintenance fees were $111.6 million. Fourth quarter revenue from professional services was $86.3 million.

Fourth Quarter Fiscal Year 2009 Highlights

During the fourth quarter, Compuware:

 * Announced that Partners HealthCare-one of the largest integrated
   healthcare systems in the U.S.-selected Compuware Vantage for end-
   to-end visibility into the clinician end-user experience with its
   electronic medical records (EMR) system.

 * Announced that Compuware Vantage and Strobe provide end-to-end
   visibility into the performance of applications that span both
   distributed and mainframe transaction systems. This integrated
   approach to Business Service Delivery enables IT operations and
   management to quickly predict, isolate and resolve performance
   challenges from the end-user perspective, increasing internal and
   external customer satisfaction.

 * Jump-started Application Portfolio Management initiatives by
   offering a pre-configured version of its market-leading IT
   portfolio management solution, Changepoint.

 * Announced that its Covisint subsidiary will provide the VIP Health
   Initiative with a collaborative network for the secure sharing of
   sensitive patient information and improved physician collaboration.
   The VIP Health Initiative was formed by Scripps Mercy Physician
   Partners, SMPP Services and Physician Partners Management Services
   to enhance the quality of care delivered while also providing key
   clinical, administrative and regulatory efficiencies.

 * Revealed the results of a study on application performance
   conducted by Forrester Consulting and commissioned by Compuware,
   which showed that 64 percent of the respondents believe that poor
   application performance causes significant financial losses.
   Despite these losses the study also showed IT takes a costly and
   reactive approach to Application Performance Management.

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the financial information following this press release uses a non-GAAP measure for revenue. The non-GAAP revenue disclosures provide information on total product commitments. 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.

Compuware Corporation

Founded in 1973, Compuware provides software, experts and best practices to ensure applications work well and deliver business value. Our unique approach, Business Service Delivery, helps CIOs optimize end-to-end application performance for leading businesses around the world, including 46 of the top 50 Fortune 500 companies. Learn more at www.compuware.com.

The Compuware logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5950

Conference Call Information

Compuware will host a conference call to discuss these results at 5:00 p.m. Eastern time (21:00 GMT) today. To join the conference call, interested parties from the United States should call 800-230-1059. For international access, the conference call number is +1-612-234-9959. No password is required.

A conference call replay will also be available. The United States replay number will be 800-475-6701, and the international replay number will be +1-320-365-3844. The replay passcode will be 992681. Additionally, investors can listen to the conference call via webcast by visiting the Compuware Corporation Investor Relations web site at http://www.compuware.com.

Certain statements in this release that are not historical facts, including those regarding the Company's future plans, objectives and expected performance, are "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. While we believe any forward-looking statements we have made are reasonable, actual results could differ materially since the statements are based on our current expectations and are subject to risks and uncertainties. These risks and uncertainties are discussed in the Company's reports filed with the Securities and Exchange Commission. Readers are cautioned to consider these factors when relying on such forward-looking information. The Company does not undertake, and expressly disclaims any obligation, to update or alter its forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

                COMPUWARE CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (In Thousands)

                                                   AS OF MARCH 31,
                                              ------------------------
                    ASSETS
                                                  2009         2008
                                              -----------  -----------
 CURRENT ASSETS:
   Cash and cash equivalents                  $   278,112  $   215,943
   Investments                                                  70,474
   Accounts receivable, net                       472,011      535,094
   Deferred tax asset, net                         37,359       44,374
   Income taxes refundable                          2,578        3,746
   Prepaid expenses and other current assets       41,350       49,285
   Assets held for sale                            27,354
                                              -----------  -----------
     Total current assets                         858,764      918,916
                                              -----------  -----------

 PROPERTY AND EQUIPMENT, LESS ACCUMULATED
  DEPRECIATION AND AMORTIZATION                   353,182      365,691
                                              -----------  -----------

 CAPITALIZED SOFTWARE, LESS ACCUMULATED
  AMORTIZATION                                     35,763       61,653
                                              -----------  -----------

 OTHER:
   Accounts receivable                            224,681      244,388
   Deferred tax asset, net                         30,851       35,851
   Goodwill                                       339,134      356,267
   Other                                           32,475       35,791
                                              -----------  -----------
     Total other assets                           627,141      672,297
                                              -----------  -----------

 TOTAL ASSETS                                 $ 1,874,850  $ 2,018,557
                                              ===========  ===========

       LIABILITIES AND SHAREHOLDERS' EQUITY

 CURRENT LIABILITIES:
   Accounts payable                           $    13,796  $    18,772
   Accrued expenses                                87,205      148,268
   Income taxes payable                            24,646        4,976
   Deferred revenue                               409,410      472,864
   Liabilities held for sale                       26,470
                                              -----------  -----------
     Total current liabilities                    561,527      644,880

 DEFERRED REVENUE                                 378,094      399,548

 ACCRUED EXPENSES                                  30,111       19,513

 DEFERRED TAX LIABILITY, NET                       24,470       27,585
                                              -----------  -----------
     Total liabilities                            994,202    1,091,526
                                              -----------  -----------

 SHAREHOLDERS' EQUITY:
   Common stock                                     2,418        2,616
   Additional paid-in capital                     628,955      643,544
   Retained earnings                              249,897      261,754
   Accumulated other comprehensive
    income (loss)                                    (622)      19,117
                                              -----------  -----------
     Total shareholders' equity                   880,648      927,031
                                              -----------  -----------

 TOTAL LIABILITIES AND SHAREHOLDERS'
  EQUITY                                      $ 1,874,850  $ 2,018,557
                                              ===========  ===========


                 COMPUWARE CORPORATION AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In Thousands, Except Per Share Data)


                         THREE MONTHS ENDED      TWELVE MONTHS ENDED
                             MARCH 31,               MARCH 31,
                        --------------------  ------------------------

                           2009       2008        2009         2008
                        ---------  ---------  -----------  -----------
 REVENUES:
   Software license
    fees                $  55,428  $ 100,794  $   219,634  $   297,506
   Maintenance fees       111,622    126,311      479,480      476,374
   Professional
    services fees          86,305    111,811      391,341      455,731
                        ---------  ---------  -----------  -----------
     Total revenues       253,355    338,916    1,090,455    1,229,611
                        ---------  ---------  -----------  -----------

 OPERATING EXPENSES:
   Cost of software
    license fees            6,031      6,815       24,491       30,475
   Cost of maintenance
    fees                    9,063     13,190       41,877       46,300
   Cost of professional
    services               78,348    104,169      368,030      413,921
   Technology
    development and
    support                18,550     23,998       86,453      101,132
   Sales and marketing     51,686     71,220      226,408      267,800
   Administrative and
    general                28,881     48,076      148,019      182,488
   Restructuring costs      3,115      3,000       10,037       42,645
                        ---------  ---------  -----------  -----------
     Total operating
      expenses            195,674    270,468      905,315    1,084,761
                        ---------  ---------  -----------  -----------

 INCOME FROM OPERATIONS    57,681     68,448      185,140      144,850
                        ---------  ---------  -----------  -----------

 OTHER INCOME (EXPENSES)
   Interest income          1,765      3,906       10,776       19,910
   Settlement              17,943     16,160       17,943       16,160
   Other                     (685)      (260)      (1,138)        (528)
                        ---------  ---------  -----------  -----------

 OTHER INCOME, NET         19,023     19,806       27,581       35,542
                        ---------  ---------  -----------  -----------

 INCOME BEFORE INCOME
  TAXES                    76,704     88,254      212,721      180,392

 INCOME TAX PROVISION      28,323     27,079       73,074       45,998
                        ---------  ---------  -----------  -----------

 NET INCOME             $  48,381  $  61,175  $   139,647  $   134,394
                        =========  =========  ===========  ===========

 DILUTED EPS COMPUTATION
 Numerator:  Net income $  48,381  $  61,175  $   139,647  $   134,394
                        ---------  ---------  -----------  -----------
 Denominator:
   Weighted-average
    common shares
    outstanding           245,006    267,932      250,916      286,402
   Dilutive effect of
    stock options             966        800        1,486        1,226
                        ---------  ---------  -----------  -----------
   Total shares           245,972    268,732      252,402      287,628
                        ---------  ---------  -----------  -----------
 Diluted EPS            $    0.20  $    0.23  $      0.55  $      0.47
                        =========  =========  ===========  ===========

                 COMPUWARE CORPORATION AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (In Thousands)

                                                  TWELVE MONTHS ENDED
                                                      MARCH 31,
                                                 --------------------
                                                    2009       2008
                                                 ---------  ---------
 CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
   Net income                                    $ 139,647  $ 134,394
   Adjustments to reconcile net income to
    cash provided by operations:
     Depreciation and amortization                  53,129     55,167
     Property and equipment impairment                 662      2,981
     Capitalized software impairment                            3,873
     Acquisition tax benefits                        5,059      5,090
     Stock award compensation                       15,637     11,553
     Deferred income taxes                           4,986     (2,022)
     Other                                             413      1,474
     Net change in assets and liabilities,
      net of effects from acquisitions
      and currency fluctuations:
       Accounts receivable                          17,853    (64,019)
       Prepaid expenses and other current
        assets                                       3,555     (7,120)
       Other assets                                 (3,641)       640
       Accounts payable and accrued expenses       (29,623)      (837)
       Deferred revenue                              4,015     64,875
       Income taxes                                 20,316     28,641
                                                 ---------  ---------
         Net cash provided by operating
          activities                               232,008    234,690
                                                 ---------  ---------

 CASH FLOWS PROVIDED BY INVESTING ACTIVITIES:
   Purchase of:
     Businesses, net of cash acquired                          (4,649)
     Property and equipment                        (17,943)   (10,498)
     Capitalized software                          (15,072)   (14,359)
   Investment proceeds                              70,212    106,717
                                                 ---------  ---------
         Net cash provided by investing
          activities                                37,197     77,211
                                                 ---------  ---------

 CASH FLOWS USED IN FINANCING ACTIVITIES:
   Net proceeds from exercise of stock
    options including excess tax benefits           11,237     67,178
   Contribution to stock purchase plans              2,986      4,066
   Repurchase of common stock                     (206,042)  (440,988)
                                                 ---------  ---------
         Net cash used in financing
          activities                              (191,819)  (369,744)
                                                 ---------  ---------

 EFFECT OF EXCHANGE RATE CHANGES ON CASH           (15,217)    13,105
                                                 ---------  ---------

 NET INCREASE (DECREASE) IN CASH AND
  CASH EQUIVALENTS                                  62,169    (44,738)

 CASH AND CASH EQUIVALENTS AT BEGINNING
  OF PERIOD                                        215,943    260,681
                                                 ---------  ---------

 CASH AND CASH EQUIVALENTS AT END OF PERIOD      $ 278,112  $ 215,943
                                                 =========  =========


                 COMPUWARE CORPORATION AND SUBSIDIARIES
                         OPERATIONAL HIGHLIGHTS
                      (dollar amounts in thousands)

                           QUARTER ENDED              QUARTER
                        --------------------           ENDED
                        MARCH 31,  MARCH 31, YR-YR    DEC. 31, QTR-QTR
                           2009       2008   %Change    2008   %Change
                        ---------  --------- ------- --------- -------
 License Fees:
   Distributed Product
    License Fees
     Vantage            $  13,937  $  23,510 (40.7%) $  18,606 (25.1%)
     Changepoint            2,528      3,296 (23.3%)     2,967 (14.8%)
     Quality                4,541      8,218 (44.7%)     6,567 (30.9%)
     Uniface                3,287      4,464 (26.4%)     3,505  (6.2%)
     DevPartner             1,069      2,385 (55.2%)     1,274 (16.1%)
                        ---------  ---------         ---------
   Total Distributed
    Product License Fees   25,362     41,873 (39.4%)    32,919 (23.0%)
   Mainframe Product
    License Fees           30,066     58,921 (49.0%)    27,594   9.0%
                        ---------  ---------         ---------
 Total License Fees        55,428    100,794 (45.0%)    60,513  (8.4%)

 Maintenance Fees         111,622    126,311 (11.6%)   116,614  (4.3%)
                        ---------  ---------         ---------
 Total Products Revenue $ 167,050  $ 227,105 (26.4%) $ 177,127  (5.7%)
                        =========  =========         =========

 Total Mainframe
  Products Revenue      $ 109,836  $ 147,247 (25.4%) $ 109,296   0.5%
 Total Distributed
  Products Revenue      $  57,214  $  79,858 (28.4%) $  67,831 (15.7%)

 Total Products
  Revenue by Geography
 North America          $  87,228  $ 113,485 (23.1%) $  89,360  (2.4%)
 International          $  79,822  $ 113,620 (29.7%) $  87,767  (9.1%)

 Product Releases
 Mainframe                      5          7 (28.6%)         1 400.0%
 Distributed                    8          2 300.0%         10 (20.0%)

 Total Costs of
  Software Products     $  85,330  $ 115,223 (25.9%) $  93,042  (8.3%)

 Deferred license fees
   Current              $  59,592  $  68,885 (13.5%) $  59,880  (0.5%)
   Long-term            $  52,513  $  60,237 (12.8%) $  47,172  11.3%
   Deferred during
    quarter             $  27,288  $  38,545 (29.2%) $  21,403  27.5%
   Recognized during
    quarter             $  20,351  $  28,760 (29.2%) $  20,406  (0.3%)

 Professional Services
   Professional
    Services Revenue    $  86,305  $ 111,811 (22.8%) $  91,540   (5.7%)
   Contribution Margin        9.2%       6.8%              5.1%
   Billable Headcount       2,116      3,171 (33.3%)     2,747  (23.0%)

 Total Company Headcount    5,006      6,344 (21.1%)     5,648  (11.4%)

 Total DSO                  167.7      142.1             175.0
 Total DSO (Billed)          83.4       76.9              96.1


              COMPUWARE CORPORATION AND SUBSIDIARIES
                        PRODUCT COMMITMENTS
                          (In Thousands)

                               QUARTER ENDED     TWELVE MONTHS ENDED
                           --------------------  --------------------
                           MARCH 31,  MARCH 31,  MARCH 31,  MARCH 31,
                              2009       2008       2009       2008
                           ---------  ---------  ---------  ---------

 License revenue           $  55,428  $ 100,794  $ 219,634  $ 297,506

     Change in deferred
      license                  6,937      9,786     (4,732)     5,033
                           ---------  ---------  ---------  ---------

 License contracts entered
  into during period          62,365    110,580    214,902    302,539
                           ---------  ---------  ---------  ---------



 Maintenance revenue         111,622    126,311    479,480    476,374

     Change in deferred
      maintenance             30,614     77,259        780     49,671
                           ---------  ---------  ---------  ---------

 Maintenance contracts &
  renewals entered into
  during period              142,236    203,570    480,260    526,045
                           ---------  ---------  ---------  ---------


 Total products
  commitments
  during period            $ 204,601  $ 314,150  $ 695,162  $ 828,584
                           =========  =========  =========  =========


 As Compuware continues to emphasize solution selling, deals are
 becoming more complex, increasing the likelihood that software
 transactions will be recognized ratably over the maintenance term.
 Therefore to understand the health of Compuware's software business,
 we believe it is important to also consider the amount of product
 commitments during the reported periods.

Compuware Corporation
Press Contact
Lisa Elkin, Vice President, Communications and
Investor Relations
+1-313-227-7345