Compuware Corporation (Nasdaq: CPWR), the technology performance company, today announced financial results for its first quarter, fiscal year 2014 ended June 30, 2013.
Non-GAAP net income for the quarter was $22.4 million, or $0.10 per diluted share, compared to $19.1 million, or $0.09 per diluted share in the year-ago period. GAAP net income for the first quarter was $10 million, or $0.05 per diluted share, compared to $10.5 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.)
“The first quarter was a good start to the year, and the results support our fiscal year 2014 forecast,” said Compuware President and CEO Bob Paul. “The quarter was marked by several positive developments, including the improvement of our sales pipelines, the release of key, innovative solution enhancements and the acquisition of several new, strategic customers in critical new growth areas. In addition to establishing strong momentum during the quarter, Q1 was also highlighted by the continued progress of our shareholder-creation initiatives, including the issuance of the company’s first-ever quarterly cash dividend and the furthering of our cost-rationalization efforts. Regarding these efforts, we remain on track to eliminate $45 million in corporate expenses in fiscal year 2014, as part of our larger goal of eliminating a minimum of $80 million to $100 million of these costs from the business over the next two years.”
First Quarter Fiscal Year 2014 Results
During the company's first quarter:
First Quarter Fiscal Year 2014 Highlights
- Total revenues were approximately $227.5 million, up slightly over Q1 last year
- Software license fees were approximately $35.4 million, up approximately 4.2 percent from Q1 last year
- Maintenance fees were approximately $98.5 million, down approximately 4.3 percent from Q1 last year
- Subscription fees were approximately $20.8 million, up approximately 1.5 percent from Q1 last year
- Professional services revenues were approximately $48.7 million, up approximately 1.1 percent from Q1 last year
- Covisint revenues were approximately $24.1 million, up approximately 17.1 percent from Q1 last year; subscription fees up 22 percent year-over-year.
During the first quarter, Compuware:
Use of Non-GAAP Financial Measures
- Enhanced Abend-AID, the industry’s leading fault management solution, making it even easier to use, especially for staff unfamiliar with mainframe legacy systems.
- Announced enhancements to Compuware APM for Mainframe, the industry’s leading 24/7 end-to-end transaction management solution spanning the edge of the Internet, through distributed systems and into mainframe environments.
- Filed a registration statement on form S-1 with the Securities and Exchange Commission with respect to the issuance of shares of Covisint common stock.
- Announced several changes to the company’s Board of Directors, including the appointments of David Fubini, a senior director of McKinsey & Company, Inc., and Lee Roberts, the former chief executive officer of FileNet, to the company's Board of Directors, effective April 5, 2013. W. James Prowse retired from the Board, effective March 31, 2013. Additionally, Gurminder S. Bedi assumed the position of Chairman of the Board, replacing Peter Karmanos, Jr., who had retired from the Board on March 31, 2013.
- Introduced a new and enhanced Covisint supplier portal that significantly improves simplicity, usability, mobile accessibility and time-to-value.
- Announced the release of Compuware APM PureStack Technology™, the first solution to finally expose how IT infrastructure conditions impede the performance of critical business applications. Additionally, Compuware APM announced the convergence of dynaTrace PurePath® Technology and the Gomez Performance Network, creating the industry’s most powerful User Experience Management (UEM) solution.
- Announced that Covisint debuted on Healthcare Informatics’ list of the nation’s top 100 healthcare IT vendors.
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.