I will now turn the call over to Bob, who will provide a summary of the quarter's results. Joe will then highlight business unit operating results, followed by Laura, who will close the key -- with key financial information. We will then open the call to your questions.
Robert C. Paul
Thanks, Lisa. The sole focus of tonight's call is to give our investors a clear and transparent understanding of Compuware's current business conditions and future expectations.To begin, I will provide an overview of the progress of our business units. As we discussed last week, our total APM revenues increased 16% sequentially and 16% year-over-year in Q3. This is healthy growth but simply not as much as we expected. Last quarter, we talked about a number of changes Compuware made to its APM organization. These changes, including multiple levels of leadership and process change, give us more focus around our individual solutions. This is already positively impacting our APM business where we will see steady improvement of our growth rates. For Q3, our APM guidance was based upon a solid sales pipeline and commit. Up to the last few days in the quarter, we had enough committed to the sales activity to achieve our APM expectations. This end-of-quarter drop highlights a number of key opportunities for improvement. Our APM number is getting very close to forecast in all geographies other than Asia. This area remains an important emerging market for us. We will continue to invest here, but we will be more cautious and disciplined in understanding the makeup of our sales commit. We have also made changes in our Asia leadership. Ultimately, we must improve our forecasting discipline and accountability. Following sales leadership meetings last week, this discipline has been refined and reinforced, which should improve the accuracy of our business outlook. One of the many changes we've implemented is to subdue the potential impact of our larger deals in the forecast. This means that if large deals push, we will have an opportunity to make up for them with other wins.
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