Compuware's 1Q Beats Estimates

Zacks

Compuware Corporation (CPWR) reported earnings per share of 5 cents in the first quarter of fiscal 2013, compared to 8 cents in the year-ago quarter and 12 cents in the previous quarter. Net income came in at $10.5 million versus $17 million in the previous year quarter and $27.1 million in the last quarter.

The earnings in the reported quarter surpassed the Zacks Consensus Estimate of 4 cents per share.

Revenues

Total revenue for the quarter came in at $226.2 million, declining 1.7% year over year and 15% sequentially. This was below the Zacks Consensus Estimate of $239 million.

Software license fees came in at approximately $34 million, down marginally by 0.4% year over year. Maintenance fees were $103 million, down 3.8% annually. Subscription fees amounted to $20.5 million, up 7.1% from the prior year quarter.

In the first quarter of fiscal 2013, Professional services fees were $48.2 million, down 10.1% from the previous year period. Application services fees increased 27.3% year over year to $20.6 million.

Margins

Operating income totaled $16.6 million, falling 15.6% from the previous year quarter. Operating margin declined to 7.3% from 8.5% in the previous year quarter and 13.6% in the previous quarter.

Administrative and general expenses amounted to $39.7 million compared with $41.5 million in the previous year quarter.

Balance Sheet and Cash Flow

Exiting first quarter of fiscal 2013, cash and cash equivalents amounted to $83.5 million declining from $99.2 million in the last quarter. Long-term debt dropped to $36.5 million from $45 million at the end of the previous quarter.

Cash flow from operations for the first quarter of fiscal 2013 came in at $18.1 million versus $15.2 million in the previous year quarter.

Guidance

Management revised its guidance for fiscal 2013 due to currency fluctuations. The company reduced its revenue guidance from $1.07 billion - $1.08 billion to $1.04 billion to $1.05 billion for fiscal 2013 along with earnings per share of 43 cents – 47 cents from 45 cents – 49 cents.

The company currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. However, we presently maintain our Neutral recommendation on the stock.

Read the Full Research Report on CPWR

Zacks Investment Research



More From Zacks.com
View Comments