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
- 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.
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