October 24, 2013

Compuware Corporation Reports Second Quarter, Fiscal Year 2014 Results

 

  • Non-GAAP EPS of 13 cents per share, up 62.5 percent year-over-year and GAAP EPS of 7 cents per share, up 40 percent year-over-year
  • Total Q2 revenue of $228.1M, up 3.4 percent year-over-year
  • Q2 license revenue of $35.7M, up 12.7 percent year-over-year
  • APM posts Q2 year-over-year total revenue growth of 12.4 percent and license growth of 35.2 percent; improves contribution margin 195 percent from (10.4) percent to 8.8 percent
  • Covisint IPO completed; second quarter total revenue increases by 19.4 percent year-over-year

 

DETROIT--(BUSINESS WIRE)-- Compuware Corporation (Nasdaq: CPWR), the technology performance company, today announced financial results for its second quarter, fiscal year 2014 ended September 30, 2013.

Non-GAAP net income for the quarter was $28.4 million, or $0.13 per diluted share, compared to $18.3 million, or $0.08 per diluted share in the year-ago period. GAAP net income for the second quarter was $16.3 million, or $0.07 per diluted share, compared to $10.6 million, or $0.05 per diluted share in the year-ago period.

(Included in the financial tables is a reconciliation between non-GAAP and GAAP results.)

"Q2 was a solid quarter for Compuware, providing us with a lot of positive momentum going into the second half of the fiscal year," said Compuware President and CEO Bob Paul. "The quarter was highlighted by strength in Covisint's first public quarter, strong growth in APM, and significant progress toward stabilization of the mainframe business. On top of posting double-digit total revenue and license growth, the APM business unit also dramatically improved its contribution margin by 195 percent. And all of this was accomplished in a challenging macro-economic environment. APM's results this quarter clearly indicate that our strategy to drive profitable growth is working. The second quarter was also successful in the furthering of our shareholder value creation initiatives, underscored by the tremendous progress we continue to make in terms of business optimization and cost rationalization. Our efforts in this regard resulted in substantial EPS growth for the quarter, as emphasized in the non-GAAP EPS. Though we know we still have more work to do, we are pleased with the progress we have made so far and with the plan we have in place to drive additional value to our shareholders."

Second Quarter Fiscal Year 2014 Results

During the company's second quarter:

  • Total revenues were approximately $228.1M, up 3.4 percent year-over-year
  • Software license fees were $35.7M, up 12.7 percent from Q2 last year
  • Maintenance fees were $100.5 million, down 1.7 percent from Q2 last year
  • Subscription fees were $20.7 million, up 2.1 percent from Q2 last year
  • Professional services revenues were $46.7 million, up 1.7 percent from Q2 last year
  • Application services fees were $24.5 million, up 19.4 percent from Q2 last year

Second Quarter Fiscal Year 2014 Highlights

During the second quarter, Compuware:

  • Completed the initial public offering of 7.36 million shares of common stock of its subsidiary Covisint Corporation. The shares began trading on the Nasdaq Global Select Market on September 26, 2013, under the symbol "COVS."
  • Covisint appointed Enrico Digirolamo as its Chief Financial Officer.
  • APM was cited by Internet Retailer Magazine as the #1 provider of web performance monitoring solutions to the largest online retailers in the U.S. for the seventh consecutive year.
  • Enhanced its Abend-AID fault management solution, making it even easier to use, especially for staff unfamiliar with mainframe legacy systems.
  • Announced the availability of Google Chrome browser agent technology within the Compuware Performance Network.
  • Announced that Kansas City-based Saint Luke's Health System is now using Covisint healthcare to help it achieve its patient-centered medical home (PCMH) designation.
  • Announced the results of a global survey measuring the financial impact on businesses when technology fails.
  • Disclosed the findings of a global survey of 468 CIOs into attitudes and concerns relating to cloud computing.
  • Continued to expand its partner program to enable organizations to resell, refer or white-label Covisint Identity Services (CIS) to better serve existing customers and attract new ones in rapidly expanding cloud markets.

Use of Non-GAAP Financial Measures

In an effort to provide investors with additional information regarding the Company's results as determined by U.S. generally accepted accounting principles (GAAP), the Company has also disclosed in this press release and the accompanying tables non-GAAP net income and non-GAAP diluted earnings per share. Each of these financial measures excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. These non-GAAP financial measures exclude share-based compensation expense; the amortization of acquired software and intangible assets; restructuring charges; advisory fees associated with certain shareholder actions and business transformation; and the related tax impacts of these items. Each of the non-GAAP adjustments is described in more detail below. This press release also contains a reconciliation of each of these non-GAAP measures to its most comparable GAAP financial measure.

We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our operating results because they exclude amounts that management and the board of directors do not consider part of core operating results when assessing the performance of the organization. We believe that inclusion of these non-GAAP financial measures provides consistency and comparability with past reports of financial results and provides consistency in calculations by outside analysts reviewing our results. Accordingly, we believe these non-GAAP financial measures are useful to investors in allowing for greater transparency of supplemental information used by management.

While we believe that these non-GAAP financial measures provide useful supplemental information, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Items such as share-based compensation expense; the amortization of acquired software and intangible assets; restructuring charges; advisory fees associated with certain shareholder actions and business transformation; and the related tax impacts of these items that are excluded from our non-GAAP financial measures can have a material impact on net earnings. As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, net earnings, cash flow from operations or other measures of performance prepared in accordance with GAAP. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reconciling the non-GAAP financial measures to their most comparable GAAP financial measure. Investors are encouraged to review the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures that are included elsewhere in this press release.

The following discusses the reconciling items from our non-GAAP financial measures to the most comparable GAAP financial measures:

Share-based compensation expense. Our non-GAAP financial measures exclude the compensation expenses required to be recorded by GAAP for equity awards to employees and directors. Management and the board of directors believe it is useful in evaluating corporate performance during a particular time period to review the supplemental non-GAAP financial measures, excluding expenses related to share-based compensation, because these costs are generally fixed at the time an award is granted, are then expensed over several years and generally cannot be changed or influenced by management once granted.

Amortization of acquired software and intangible assets. Our non-GAAP financial measures exclude costs associated with the amortization of acquired software and intangible assets. Management and the board of directors believe it is useful in evaluating corporate performance during a particular time period to review the supplemental non-GAAP financial measures, excluding amortization of acquired software and intangible assets, because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by management after the acquisition.

Restructuring charges. Our non-GAAP financial measures exclude restructuring charges, and any subsequent changes in estimates, as they relate to our corporate restructuring activities. Management and the board of directors believe it is useful in evaluating corporate performance during a particular time period to review the supplemental non-GAAP financial measures, excluding restructuring charges, in order to provide comparability and consistency with historical operating results.

Advisory fees associated with certain shareholder actions and business transformation. During the fourth quarter of fiscal 2013, in response to an unsolicited, nonbinding offer to purchase the outstanding shares of the Company from a shareholder, the Company announced its willingness to consider other viable offers. The Company continues to incur unplanned consultant fees to analyze the business, review additional requests for information from other interested parties and to implement business transformation plans. Management and the board of directors believe it is useful in evaluating corporate performance during a particular time period to review the supplemental non-GAAP financial measures, excluding such costs, in order to provide comparability and consistency with historical operating results.

Provision for income taxes on above pre-tax non-GAAP adjustments. Our non-GAAP financial measures exclude the tax impact of the above pre-tax non-GAAP adjustments. This amount is calculated using the tax rates of each country to which these pre-tax non-GAAP adjustments relate. Management excludes the non-GAAP adjustments on a net-of-tax basis in evaluating our performance. Therefore, we exclude the tax impact of these charges when presenting non-GAAP financial measures.

Compuware Corporation

Compuware Corporation, the technology performance company, provides software, experts and best practices to ensure technology works well and delivers value. Compuware solutions make the world's most important technologies perform at their best for leading organizations worldwide, 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.

Conference Call Information

Compuware will today hold a conference call to discuss these results at 5:30 p.m. Eastern time (21:00 GMT). To join the conference call, interested parties in the United States should call 800-288-8974. For international access, the conference call number is +1-612-332-0636. No password is required. Additionally, investors can listen to the conference call via webcast by visiting the Compuware Corporation Investor Relations web site. A conference call presentation is also available on the site.

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 303716.

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 SEPTEMBER 30,
ASSETS            
    2013   2012
CURRENT ASSETS:            
Cash and cash equivalents   $ 50,372     $ 63,516  
Accounts receivable, net     381,892       365,143  
Offering proceeds receivable     68,448        
Deferred tax asset, net     42,837       39,413  
Income taxes refundable     4,628       9,930  
Prepaid expenses and other current assets     33,365       31,884  
Total current assets     581,542       509,886  
             
             
PROPERTY AND EQUIPMENT, LESS ACCUMULATED            
DEPRECIATION AND AMORTIZATION     295,264       319,472  
             
CAPITALIZED SOFTWARE AND OTHER            
INTANGIBLE ASSETS, NET     111,162       117,395  
             
ACCOUNTS RECEIVABLE     191,208       199,574  
DEFERRED TAX ASSET, NET     30,351       37,973  
GOODWILL     732,265       794,989  
OTHER ASSETS     28,688       35,789  
             
TOTAL ASSETS   $ 1,970,480     $ 2,015,078  
             
LIABILITIES AND SHAREHOLDERS' EQUITY            
             
CURRENT LIABILITIES:            
Accounts payable   $ 16,894     $ 17,296  
Accrued expenses     92,969       82,389  
Income taxes payable     18,266       5,490  
Deferred revenue     387,878       399,103  
Total current liabilities     516,007       504,278  
             
LONG TERM DEBT     14,000       59,300  
             
DEFERRED REVENUE     285,119       300,695  
             
ACCRUED EXPENSES     18,274       24,726  
             
DEFERRED TAX LIABILITY, NET     52,769       84,193  
Total liabilities     886,169       973,192  
             
SHAREHOLDERS' EQUITY:            
Common stock     2,157       2,148  
Additional paid-in capital     799,647       693,556  
Retained earnings     268,937       362,648  
Accumulated other comprehensive loss     (7,539 )     (16,466 )
Total Compuware shareholders' equity     1,063,202       1,041,886  
Non-controlling interest     21,109       -  
Total shareholders' equity     1,084,311       1,041,886  
             
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 1,970,480     $ 2,015,078  
COMPUWARE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
                           
                           
      THREE MONTHS ENDED   SIX MONTHS ENDED
      SEPTEMBER 30,   SEPTEMBER 30,
                           
      2013   2012   2013   2012
REVENUES:                          
Software license fees     $ 35,710     $ 31,674     $ 71,116     $ 65,668  
Maintenance fees       100,500       102,197       199,028       205,146  
Subscription fees       20,651       20,231       41,436       40,710  
Professional services fees     46,716       45,954       95,412       94,106  
Application services fees       24,525       20,542       48,626       41,129  
Total revenues       228,102       220,598       455,618       446,759  
                           
OPERATING EXPENSES:                          
Cost of software license fees     5,632       4,904       11,038       9,729  
Cost of maintenance fees       7,724       9,068       15,945       18,014  
Cost of subscription fees       8,656       7,827       16,803       15,220  
Cost of professional services     37,610       40,085       77,959       82,386  
Cost of application services     33,689       18,989       57,950       36,710  
Technology development and support     24,125       27,549       50,660       54,046  
Sales and marketing       53,450       56,641       112,943       118,831  
Administrative and general     35,093       38,361       73,321       78,086  
Restructuring costs       233       -       5,345       -  
Total operating expenses     206,212       203,424       421,964       413,022  
                           
INCOME FROM OPERATIONS     21,890       17,174       33,654       33,737  
                           
OTHER INCOME, NET       185       (87 )     387       (35 )
                           
INCOME BEFORE INCOME TAXES     22,075       17,087       34,041       33,702  
                           
INCOME TAX PROVISION       6,889       6,493       8,888       12,640  
                           
NET INCOME       15,186       10,594       25,153       21,062  
                           
Less: Net income (loss) attributable to the                        
non-controlling interest in Covisint Corporation     (1,154 )     -       (1,154 )     -  
                           
NET INCOME ATTRIBUTABLE TO COMPUWARE CORP   $ 16,340     $ 10,594     $ 26,307     $ 21,062  
                           
DILUTED EPS COMPUTATION                        
Numerator: Net income     $ 16,340     $ 10,594     $ 26,307     $ 21,062  
Denominator:                          
Weighted-average common shares outstanding     214,926       215,633       214,287       216,566  
Dilutive effect of stock awards     5,503       4,337       5,720       4,142  
Total shares       220,429       219,970       220,007       220,708  
Diluted EPS     $ 0.07     $ 0.05     $ 0.12     $ 0.10  
COMPUWARE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
             
    SIX MONTHS ENDED
    SEPTEMBER 30,
    2013   2012
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:            
Net income   $ 25,153     $ 21,062  
Adjustments to reconcile net income to cash provided            
by operations:            
Depreciation and amortization     32,501       31,126  
Stock award compensation     25,312       15,179  
Deferred income taxes     (16,450 )     4,812  
Other     42       269  
Net change in assets and liabilities, net of effects from            
currency fluctuations:            
Accounts receivable     33,366       90,397  
Prepaid expenses and other assets     5,640       4,535  
Accounts payable and accrued expenses     (24,180 )     (41,426 )
Deferred revenue     (58,934 )     (114,452 )
Income taxes     4,634       4,820  
Net cash provided by operating activities     27,084       16,322  
             
CASH FLOWS USED IN INVESTING ACTIVITIES:            
Purchase of:            
Property and equipment     (5,953 )     (12,977 )
Capitalized software     (11,649 )     (15,583 )
Other     (275 )     (1,400 )
Net cash used in investing activities     (17,877 )     (29,960 )
             
CASH FLOWS USED IN FINANCING ACTIVITIES:            
Proceeds from borrowings     37,500       87,300  
Payments on borrowings     (41,500 )     (73,000 )
Net proceeds from exercise of stock awards including excess tax benefits     15,333       8,676  
Employee contribution to common stock purchase plans     1,235       1,427  
Repurchase of common stock     (6,415 )     (44,828 )
Dividends     (53,629 )     -  
Other     (608 )     -  
Net cash used in financing activities     (48,084 )     (20,425 )
             
EFFECT OF EXCHANGE RATE CHANGES ON CASH     (624 )     (1,601 )
             
NET CHANGE IN CASH AND CASH EQUIVALENTS     (39,501 )     (35,664 )
             
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD     89,873       99,180  
             
CASH AND CASH EQUIVALENTS AT END OF PERIOD   $ 50,372     $ 63,516  
COMPUWARE CORPORATION AND SUBSIDIARIES
OPERATIONAL HIGHLIGHTS
(Dollar Amounts In Thousands)
             
    QUARTER    
    ENDED    
    SEP 30,   YR - YR
    2013   2012   % Chg
Total Product Software Revenue by Geography            
North America   $ 90,358   $ 88,809   1.7 %
International     66,503     65,293   1.9 %
             
Deferred License Fees            
Current   $ 15,263   $ 17,747   (14.0 %)
Long-term     9,426     8,774   7.4 %
             
Deferred Maintenance            
Current   $ 294,910   $ 299,037   (1.4 %)
Long-Term     251,137     257,798   (2.6 %)
             
Deferred Subscription            
Current   $ 41,358   $ 46,602   (11.3 %)
Long-Term     7,042     10,549   (33.2 %)
             
Deferred Professional Services   $ 22,358   $ 22,190   0.8 %
             
Deferred Application Services   $ 31,503   $ 37,101   (15.1 %)
             
             
Other:            
Total Company Headcount     4,338     4,567   (5.0 %)
             
Total DSO (Billed)     66.0     64.9    
Total DSO     150.7     148.9    
             
             
Stock-based compensation expense            
             
Cost of maintenance fees   $ 170   $ 235   (27.7 %)
Cost of subscription fees     1     18   (94.4 %)
Cost of professional services     93     68   36.8 %
Cost of application services     10,020     387   2489.1 %
Technology development and support     530     730   (27.4 %)
Sales and marketing     808     1,403   (42.4 %)
Administrative and general     3,253     4,049   (19.7 %)
             
Total stock-based compensation expense before income taxes   $ 14,875   $ 6,890   115.9 %
COMPUWARE CORPORATION AND SUBSIDIARIES
BUSINESS UNIT RESULTS OF OPERATIONS
(In Thousands)
                                   
                          Covisint   Unallocated    
                      Professional   Application   Expenses    
Quarter Ended:   APM   Changepoint   Mainframe   Uniface   Services   Services   & Eliminations   Total
                                   
  September 30, 2013                                
                                   
  Software license fees   $ 24,256     $ 958     $ 8,335     $ 2,161       -       -       -     $ 35,710  
  Maintenance fees     24,394       4,247       64,425       7,434       -       -       -       100,500  
  Subscription fees     19,931       720       -       -       -       -       -       20,651  
  Professional services fees     6,796       3,202       31       986     $ 36,013       -     $ (312 )     46,716  
  Application services fees     -       -       -       -       -     $ 24,525       -       24,525  
  Total revenues     75,377       9,127       72,791       10,581       36,013       24,525       (312 )     228,102  
                                   
  Total operating expenses     68,757       8,827       17,324       4,694       28,918       34,362       43,330       206,212  
                                   
  Income (loss) from operations   $ 6,620     $ 300     $ 55,467     $ 5,887     $ 7,095     $ (9,837 )   $ (43,642 )   $ 21,890  
  Contribution margin %     8.8 %     3.3 %     76.2 %     55.6 %     19.7 %     (40.1 %)         9.6 %
                                   
  Operating expenses include:                                
  Stock awards compensation   $ 1,796     $ 4     $ (315 )   $ 5     $ 72     $ 10,020     $ 3,293     $ 14,875  
  Amortization of purchased software   $ 2,296     $ -     $ -     $ -     $ -     $ 94     $ -     $ 2,390  
  Amortization of other acquired intangible assets   $ 1,707     $ -     $ -     $ -     $ -     $ 96     $ -     $ 1,803  
                                   
                                   
  September 30, 2012                                
                                   
  Software license fees   $ 17,942     $ 2,068     $ 9,773     $ 1,891       -       -       -     $ 31,674  
  Maintenance fees     22,410       4,052       68,378       7,357       -       -       -       102,197  
  Subscription fees     19,544       687       -       -       -       -       -       20,231  
  Professional services fees     7,184       3,317       674       1,095     $ 33,684       -       -       45,954  
  Application services fees     -       -       -       -       -     $ 20,542       -       20,542  
  Total revenues     67,080       10,124       78,825       10,343       33,684       20,542       -       220,598  
                                   
  Operating expenses     74,059       10,752       20,284       4,606       28,138       20,051     $ 45,534       203,424  
                                   
  Income (loss) from operations     (6,979 )     (628 )     58,541       5,737       5,546       491       (45,534 )     17,174  
  Contribution margin %     (10.4 %)     (6.2 %)     74.3 %     55.5 %     16.5 %     2.4 %         7.8 %
                                   
  Operating expenses include:                                
  Stock awards compensation   $ 1,651     $ 15     $ 550     $ 10     $ 42     $ 387     $ 4,235     $ 6,890  
  Amortization of purchased software   $ 2,224     $ -     $ -     $ -     $ -     $ 148     $ -     $ 2,372  
  Amortization of other acquired intangible assets   $ 1,826     $ -     $ -     $ -     $ -     $ 113     $ -     $ 1,939  
COMPUWARE CORPORATION AND SUBSIDIARIES
BUSINESS UNIT RESULTS OF OPERATIONS
(In Thousands)
                                   
                          Covisint   Unallocated    
                      Professional   Application   Expenses    
Six Months Ended:   APM   Changepoint   Mainframe   Uniface   Services   Services   & Eliminations   Total
                                   
  September 30, 2013                                
                                   
  Software license fees   $ 46,267     $ 3,154     $ 18,067     $ 3,628       -       -       -     $ 71,116  
  Maintenance fees     48,098       8,374       127,883       14,673       -       -       -       199,028  
  Subscription fees     40,063       1,373       -       -       -       -       -       41,436  
  Professional services fees     14,398       6,771       100       2,110     $ 72,999       -       (966 )     95,412  
  Application services fees     -       -       -       -       -     $ 48,626       -       48,626  
  Total revenues     148,826       19,672       146,050       20,411       72,999       48,626       (966 )     455,618  
                                   
  Total operating expenses     142,803       19,141       36,500       9,864       59,550       59,785       94,321       421,964  
                                   
  Income (loss) from operations   $ 6,023     $ 531     $ 109,550     $ 10,547     $ 13,449     $ (11,159 )   $ (95,287 )   $ 33,654  
  Contribution margin %     4.0 %     2.7 %     75.0 %     51.7 %     18.4 %     (22.9 %)         7.4 %
                                   
  Operating expenses include:                                
  Stock awards compensation   $ 4,619     $ 7     $ 219     $ 10     $ 136     $ 10,506     $ 9,815     $ 25,312  
  Amortization of purchased software   $ 4,573     $ -     $ -     $ -     $ -     $ 188     $ -     $ 4,761  
  Amortization of other acquired intangible assets   $ 3,400     $ -     $ -     $ -     $ -     $ 195     $ -     $ 3,595  
                                   
  September 30, 2012                                
                                   
  Software license fees   $ 40,299     $ 2,861     $ 18,823     $ 3,685       -       -       -     $ 65,668  
  Maintenance fees     43,175       8,182       138,924       14,865       -       -       -       205,146  
  Subscription fees     39,396       1,314       -       -       -       -       -       40,710  
  Professional services fees     15,379       6,761       967       2,271     $ 68,728       -       -       94,106  
  Application services fees     -       -       -       -       -     $ 41,129       -       41,129  
  Total revenues     138,249       19,118       158,714       20,821       68,728       41,129       -       446,759  
                                   
  Operating expenses     150,155       20,441       43,129       10,025       57,058       38,067     $ 94,147       413,022  
                                   
  Income (loss) from operations   $ (11,906 )   $ (1,323 )   $ 115,585     $ 10,796     $ 11,670     $ 3,062     $ (94,147 )   $ 33,737  
  Contribution margin %     (8.6 %)     (6.9 %)     72.8 %     51.9 %     17.0 %     7.4 %         7.6 %
                                   
  Operating expenses include:                                
  Stock awards compensation   $ 3,155     $ 30     $ 1,511     $ 37     $ 115     $ 709     $ 9,622     $ 15,179  
  Amortization of purchased software   $ 4,483     $ -     $ -     $ -     $ -     $ 296     $ -     $ 4,779  
  Amortization of other acquired intangible assets   $ 3,677     $ -     $ -     $ -     $ -     $ 225     $ -     $ 3,902  
COMPUWARE CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(In Thousands, Except Per Share Data)
                             
                             
        THREE MONTHS ENDED   SIX MONTHS ENDED
        SEPTEMBER 30,   SEPTEMBER 30,
        2013   2012   2013   2012
                             
NET INCOME       $ 16,340     $ 10,594     $ 26,307     $ 21,062  
                             
STOCK COMPENSATION (EXCLUDING RESTRUCTURING

STOCK COMPENSATION) NET OF NON-CONTROLLING INTEREST

      12,985       6,890       21,631       15,179  
AMORTIZATION OF PURCHASED SOFTWARE,

NET OF NON-CONTROLLING INTEREST

    2,389       2,372       4,759       4,779  
AMORTIZATION OF ACQUIRED INTANGIBLES,

NET OF NON-CONTROLLING INTEREST

    1,801       1,939       3,594       3,902  
RESTRUCTURING EXPENSES         233       -       5,345        
ADVISORY FEES         1,977       -       3,133        
                             
TOTAL ADJUSTMENTS         19,385       11,201       38,462       23,860  
INCOME TAX EFFECT OF ADJUSTMENTS         (7,280 )     (3,489 )     (13,907 )     (7,531 )
                             
NON-GAAP NET INCOME       $ 28,445     $ 18,306     $ 50,862     $ 37,391  
                             
                             
DILUTED EARNINGS PER SHARE - GAAP       $ 0.07     $ 0.05     $ 0.12     $ 0.10  
                             
STOCK COMPENSATION (EXCLUDING RESTRUCTURING

STOCK COMPENSATION) NET OF NON-CONTROLLING INTEREST

      0.06       0.03       0.10       0.07  
AMORTIZATION OF PURCHASED SOFTWARE,

NET OF NON-CONTROLLING INTEREST

    0.01       0.01       0.02       0.02  
AMORTIZATION OF ACQUIRED INTANGIBLES,

NET OF NON-CONTROLLING INTEREST

    0.01       0.01       0.02       0.02  
RESTRUCTURING EXPENSES         0.00       -       0.02        
ADVISORY FEES         0.01       -       0.01        
                             
TOTAL ADJUSTMENTS         0.09       0.05       0.17       0.11  
INCOME TAX EFFECT OF ADJUSTMENTS         (0.03 )     (0.02 )     (0.06 )     (0.04 )
                             
NON-GAAP DILUTED EPS       $ 0.13     $ 0.08     $ 0.23     $ 0.17  
                             
DILUTED SHARES OUTSTANDING         220,429       219,970       220,007       220,708  

Source:Compuware

 

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

Source: Compuware Corporation

 

 

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