FARMINGTON HILLS, Mich.--January 22, 2003--Compuware Corporation (NASDAQ: CPWR) today announced financial results for its third quarter ended December 31, 2002. Compuware reports third quarter revenues of $333.1 million, compared to $453.8 million in the third quarter of the previous fiscal year. Net income was $25.4 million from $29.8 million in the same quarter of fiscal 2002. Earnings per share (diluted computation) were 7 cents compared to 8 cents, based upon 379.1 million and 382.6 million shares outstanding, respectively.
During the company's third quarter, software license fees were $73.8 million, maintenance fees were $100.3 million and revenue from professional services was $159.0 million. "While it's not the greatest market for technology, we believe that Compuware will begin to grow again in the coming fiscal year," said Compuware chairman and CEO Peter Karmanos, Jr. "We experienced some growth in our distributed products revenue and good cash flow from operations during the quarter. Distributed products license revenue grew nearly 27 percent from the second to the third quarter and cash flow from operations was almost $85 million," Karmanos said. "In spite of market conditions, we remain focused on the growth of our distributed products like OptimalJ and Vantage, and other key initiatives such as our Near Shore Development Center and our CARS offering."
Concluding, Karmanos said: "Because we deliver immediate value to our customers regardless of the condition of the economy, we believe we remain well-positioned to grow the company. Our ability to stay profitable and debt-free enhances our ability to produce competitive offerings that deliver the productivity and value customers are demanding."
Third Quarter Fiscal Year 2003 Highlights
During the third quarter, Compuware:
a.. Announced the appointment of three independent board members to its Board of Directors. New Compuware board members include Gurminder S. Bedi, a retired Ford Motor Company executive; Faye Alexander Nelson, Vice President of Government and Civic Affairs at Wayne State University; and Glenda D. Price, President of Marygrove College.
b.. Unveiled a set of enhancements to its Vantage application performance management suite that bolster customer ROI. Network managers can realize additional IT cost savings by addressing the performance management requirements of a broader array of applications operating on increasingly expensive and complex networks.
c.. Announced that Anexsys LLC selected automated software quality solutions and professional services from Compuware to ensure the quality and availability of web-based applications. Anexsys, whose systems have handled 32 million government transactions with payments totaling $950 billion, chose Compuware QACenter solutions and professional services to automate testing and ensure that applications work as expected under any amount of user activity. With QACenter, Anexsys achieved a 30 percent increase in application testing productivity.
d.. Announced the availability of DevPartnerDB 4.1 for Oracle, a suite of PL/SQL debugging, profiling and tuning tools. Through proactive analysis and debugging of PL/SQL, automated tuning of SQL, and other features, DevPartnerDB 4.1 for Oracle significantly reduces the development time for applications and stored procedures, helping developers deliver more reliable applications quickly and easily.
e.. Released DevPartner Java Edition 3.0, a suite of software development productivity tools that speeds the delivery of reliable, high-performance Java applications and components. Accessed through an easy-to-use web browser interface, DevPartner Java Edition uses powerful analysis and profiling techniques to help Java developers understand how their code performs before an application is deployed.
f.. Announced that it has entered into a technology agreement with AMD (NYSE: AMD) to add x86-64 support to Compuware SoftICE64. Compuware will provide the global supplier of integrated circuits with SoftICE64 to debug 64-bit device drivers. This agreement enables developers to more rapidly build software targeted for upcoming AMD Opteron and AMD Athlon processors, based on Hammer technology.
g.. Introduced enhancements to its Abend-AID Fault Manager 3.0. These additions help IT managers proactively manage fault events by detecting and collecting faults in the Sun Solaris UNIX server environment, in addition to OS/390 and Windows NT server fault-events. Additionally, Fault Manager now allows reports and graphs to be scheduled and sent in e-mail form.
h.. Announced that Compuware customer E-SoftSys experienced a 40 percent productivity improvement by using Compuware OptimalJ to redevelop a workflow application. Adopting OptimalJ and its model-driven, pattern-based (MDPB) development paradigm resulted in many advantages for E-SoftSys, including increased developer productivity, reduced programming skills requirements, simplification of the development process, easy application maintenance and enhancement, and reduced testing requirements.
Compuware Corporation
Compuware Corporation, a multi-billion dollar company, provides business value through software and professional services that optimize productivity and reduce costs across the application life cycle. Meeting the rapidly changing needs of businesses of all sizes, Compuware's market-leading solutions improve the quality, ease the integration and enhance the performance of distributed, e-business and enterprise software. For more information about Compuware, please contact the corporate offices at 800-521-9353. You may also visit Compuware on the World Wide Web at http://www.compuware.com.
Press Contact:
Lisa Elkin, Vice President, Communications and Investor Relations, 00 1 248 737 7345