For those of you who do not have a copy, I will begin by summarizing the press release. Bob and Laura will then provide details about the quarter and other Compuware business activities. We will then open the call to your questions.Compuware earned $0.06 per share in Q1 as momentum in growth engines continues. Non-mainframe solutions revenue increases 44% year-over-year in Q1 excluding divested products, 12.5% as reported. Total products revenue increases 8.7% year-over-year in Q1 excluding divested products to $150.1 million, decreases 1% as reported. Q1 Vantage license fees increased 52% year-over-year to $14.2 million. Gomez Q1 subscription revenue reaches $13.3 million as demand for Enterprise to Internet APM increases. Changepoint license fees increased 79% year-over-year to $2.4 million in Q1 as focus on technology companies drives new sales. Covisint revenues increased 16% year-over-year to $11.2 million in Q1 as both healthcare and manufacturing verticals show strength. Compuware reports first quarter revenues of $206.5 million compared to $214.4 million in Q1 last year. First quarter earnings per share were $0.06 compared to $0.21 in Q1 last year based upon 227.6 million and 242.5 million shares outstanding, respectively. During Q1 last year, Compuware EPS were positively impacted by $0.14 per share from the gain on the divestiture of the company’s quality solutions business. First quarter net income was $12.6 million compared to $51 million in the same period last year. During Q1 last year, Compuware net income was positively impacted by $33.8 million from the after-tax gain on the divestiture of the company’s quality solutions business. During the company’s first quarter, software license fees were $33.3 million compared to $31.8 million excluding divested products, and $40.6 million as reported in the first quarter last year. Maintenance and subscription fees were $116.8 million in the first quarter compared to $106.3 million excluding divested products, and $111.1 million as reported in the first quarter last year.
Revenue from professional services in the first quarter was $56.4 million, compared to $62.7 million in the same quarter last year.I would now like to turn the call over to Bob. Bob? Bob Paul Thanks, Lisa, and good afternoon, everybody. This quarter gives us a great opportunity to numerically look at the transition that Compuware has gone through. A simple way to look at the Compuware business is in three segments; our Non-Mainframe Solutions, Mainframe Solutions and Professional Services. Compared to last year, our Non-Mainframe Solutions revenue has improved 12.5% and that’s including the quality and testing that we divested this time last year. If you exclude the divested quality and testing business, it has grown 44%. Much more importantly than the numbers, the portfolio is dramatically healthier as we’re now delivering compelling and disruptive solutions in relevant and high growth categories. Doing fewer things better has distanced Compuware from our competitors and allowed us to provide thought leadership where we can be best-in-class. Our Mainframe business continues to deliver great stability. Although across the industry mainframe capacity is down, which reduces some capability to deliver new license billings with renewal transactions. Our customer retention, however, the percentage remains very high with mainframe maintenance renewals in the mid-to-low 90s. We were basically one deal away from making our mainframe revenue numbers this quarter. Finally, the Compuware Professional Services contribution margin doubled over last year. To hit these targets, we purposefully reduced revenues $7.9 million year-on-year by getting out of low margin and no margin contracts. The services business is today much healthier as it can now deliver both revenue and margin growth. Read the rest of this transcript for free on seekingalpha.com