Compuware Reports Inline

Compuware Corporation (CPWR - Analyst Report) posted a net income of income of $22.7 million or $0.10 per share in the second quarter of fiscal 2012 compared to a net income of $16.9 million or $0.08 in the first quarter of fiscal 2012 and a net income of $25.9 million or $0.12 per share in the year-ago quarter.

The results were towards the high end of management’s guidance range of $0.08 - $0.10 and the Zacks Consensus Estimate.

Michigan-based Compuware Corporation provides software products and professional services to many of the largest users of information systems across the world.

Revenues came in at $260.7 million, up 15.4% year over year and 13.4% sequentially. Software license fees came in at $61.7 million, up 35.3% year over year. Maintenance and subscription fees were $128.2 million in the second quarter, up 5.1% year over year.

Revenue from professional services in the second quarter was $70.8 million, up 21.6% year over year as the company’s offerings in high demand areas like mobility, virtualization and cloud-based technologies drive new business.

Covisint (Compuware markets its application services under the brand name Covisint) revenues increased 44.0% year over year to $18.0 million.

Operating cash flow came in at $16.6 million. Operating expenses came in at $222.5 million, up from $210.4 million in the previous quarter. The increase in expenses was primarily due to currency and the expenses associated with the purchase and operation of dynaTrace.

On July 6, 2011, Compuware acquired Boston-based rival dynaTrace software for $256 million.

Privately-held, dynaTrace employs 180 people and generated revenues of $26 million in the last twelve months.

Operating margin declined to 14.6% from 18.0% in the year-ago quarter but improved from 9.0% in the previous quarter.

Guidance

For fiscal 2012, management expects revenues to come around $1.04 billion, down from $1.06 billion. Management projects GAAP EPS of $0.47 to $0.50, down from the previous forecast of $0.50 – $0.54 primarily due to stronger dollar against euro and a new subscription-based dynaTrace UEM solution.

Cash flow from operations is expected to range within $160 million-$175 million.

For the third quarter, management expects EPS between $0.11 and $0.13.

Read the full analyst report on CPWR