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» Compuware Corporation - Special Call
» Compuware's CEO Discusses Q3 2012 Results - Earnings Call Transcript
» Compuware Corporation - Analyst/Investor Day
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 with key financial information. We will then open the call to your questions. Bob?Robert C. Paul Thanks, Lisa. I'm pleased to report that Compuware achieved strong results for both our fiscal year and fiscal fourth quarter 2012. For the year, we delivered an approximately 9% year-over-year increase in total revenues, our largest revenue increase in a dozen years. In Q4 alone, revenues increased almost 7% year-over-year to $266 million. With every one of our business units generating year-over-year revenue growth, we believe we have crossed a major threshold in our strategic transformation and have strong momentum propelling us in the fiscal year '13. While we had some challenges predicting performance over the year, given the changes to our business model, and the integrations of our acquisitions, earnings for the year were $0.40 per share, this includes $3.1 million of severance expense last quarter. So for the quarter, earnings were $0.12 per share. That's inclusive of the severance. For fiscal year '12, total company operating margin came in at 12.5% as we absorbed the financial impact of the dynaTrace acquisition. We recognize that we still have a great deal of progress to make in improving our margins. This is a top priority for the company, which I'll discuss more in detail later. Overall, Compuware's positive macro results during a year of significant transition demonstrate that we've built the company for both near-term performance and long-term dominance. We are successfully executing on the updated 3-year strategic plan that we announced in December. This plan focuses us on enhancing shareholder value, maintaining market leadership and driving growth and profitability across each of our business units.
We are making progress in achieving the financial, operational and growth targets we set for ourselves as we continue to deliver differentiated solutions that optimize user experience. Thanks to the hard work of our team, we have returned Compuware to a growth story. In 2008, our high-growth businesses accounted for just 16% of total revenue. In fiscal year '12, we've boosted that to almost 40%. Our transition into Q1 sales has been strong and major new releases earlier this month, which I'll talk about shortly, bode well for the coming year. While Joe will discuss the specific operating results by business unit, I do want to note a few key strategic highlights across the organization.The Compuware APM business performed well in Q4, reaching a more than 20% increase in total year-over-year revenues for the quarter. For the year, total revenues increased nearly 17%. We saw strong growth from Compuware APM license revenues in Q4 with license fees up nearly 30% year-over-year, and the momentum is continuing into the fiscal year. For fiscal year '12, Compuware APM license fees increased almost 10%. The Compuware Gomez SaaS business achieves a nearly 13% year-over-year growth rate in fiscal year '12. Both of these percentages should continue to increase with our recently announced major product releases. The spring release of Compuware APM brings tremendous innovation and value to our customers, more than any release in recent history. This release features several industry-leading firsts, including a deep transaction monitoring solution for dynamic cloud and big data environments, including Cassandra NoSQL and Hadoop. We have also dramatically increased time to value, with 0 configuration instrumentation, out-of-the-box analytics, dynamic baselining and, of course, iPv6 support for cloud, Web and mobile platforms. Read the rest of this transcript for free on seekingalpha.com