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Compuware Warns on Earnings, Sales

It sees a second-quarter loss due to higher expenses.
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Software maker and consultant

Compuware

(CPWR)

lowered third-quarter revenue guidance and said increased capital spending will result in an unexpected loss for the quarter.

The shares were halted in premarket trading at $6.10.

The company expects total revenue of $302 million in the quarter, comprising new license revenue of $59 million, maintenance revenue of $99 million and services revenue of $144 million. Analysts were forecasting overall revenue of $311.3 million.

Compuware said it has "increased its strategic investments in marketing and sales," bumping up expenses and resulting in an expected loss of 2 cents a share in the quarter. "Compuware management believes that these investments will lead to growth in the coming quarters," it added.

Analysts polled by Thomson First Call had been forecasting earnings of 2 cents a share in the second quarter.