Compuware says 4Q hurt by order delays
Compuware says customers delayed orders, hurting 4Q results; shares tumble in extended trading
DETROIT (AP) -- Software development company Compuware Corp. said late Wednesday that delays in customer orders will hurt its fourth-quarter results.
The company's stock fell nearly 4 percent in after-hours trading on the news.
Compuware said that based on preliminary results, it expects to earn after adjusting for one-time items between 5 and 6 cents per share for the quarter that ended March 31, on revenue between $237 million and $241 million. Analysts polled by FactSet were anticipating earnings of 17 cents per share on revenue of $272.8 million.
The Detroit company also said it anticipates earning between 26 and 28 cents per share on an adjusted basis for the year on revenue between $942 million to $946 million. Analysts had forecast earnings of 43 cents per share on revenue of $977.4 million.
CEO Bob Paul said that a large number of the deals the company had anticipated closing in the fourth quarter were pushed into the new fiscal year, which hurt its results. He said many clients and prospective clients were unable to formalize their information technology budgets during the period and the company expects 75 to 80 percent of these delayed deals to close in the next fiscal year.
"While we are very disappointed in our Q4 results, we nonetheless remain confident that the actions we have taken to improve our competitive position and drive profitable growth are working and will enable us to fully unleash the value of this company," he said in a statement.
The company expects to report its fourth-quarter results on May 21.
Compuware has cut jobs and lowered expenses to help improve its profitability. It also is trying to spin off its Covisint Corp. business into a public company so it would have flexibility to pursue strategic opportunities and increase its visibility. Covisint specializes in secure, industry specific communication and collaboration, according to its website.
Compuware in January rejected a $2.35 billion takeover bid by one of its largest shareholders. The company said Wednesday that its board continues to be committed to carefully reviewing and evaluating any credible offer it receives that delivers full value to its shareholders.
The company's stock fell 43 cents to $11.60 in after-hours trading. Its stock has risen about 40 percent since November and closed regular trading at $12.03, down 23 cents for the day.
