Printer Friendly

COMPUWARE CORPORATION REPORTS THIRD-QUARTER RESULTS

 FARMINGTON HILLS, Mich., Jan. 25 /PRNewswire/ -- Compuware Corporation (NASDAQ: CPWR), a world leader in the sales of integrated systems software products which improve programmer productivity, today announced financial results for its third quarter (ended Dec. 31, 1992) and first nine months of its 1993 fiscal year.
 Revenues for the third quarter were $62.2 million, an increase of $14.8 million, or 31 percent, over the $47.4 million for the same period last year. Net income for the quarter increased 87 percent to $11.8 million from $6.3 million in the third quarter of the previous fiscal year.
 Total revenues for the first nine months of fiscal 1993 of $165.8 million increased 36 percent or $44.1 million from $121.7 million for the first nine months of fiscal 1992. Net income for the first nine months of fiscal 1993 increased by $34.4 million to $25.7 million from a loss of $8.7 million during the first nine months of 1992. Results for the first nine months of fiscal 1992 were adversely impacted by special charges totaling $21.1 million incurred in connection with certain acquisitions.
 "Fiscal 1993 represents a period of significant growth in our Products and Professional Services divisions," said Peter Karmanos Jr., Compuware Corporation's chairman and chief executive officer. "We've seen expansion of sales and profitability in both Products and Services."
 Products Division Shows Global Growth
 "Driven by the strength of our product offerings in testing and debugging, our new software license sales have experienced strong increases," Karmanos said, "rising 21 percent from $21.1 million in the third quarter of 1992, which was one of the company's strongest ever, to $25.5 million in third-quarter 1993, another record." License fees grew 33 percent for the first nine months, an increase from $45.1 million in fiscal 1992 to $60.0 million in fiscal 1993. Although license fees for all product families grew substantially, the largest increases were from file and data management and fault diagnosis products.
 Software maintenance fees also contributed substantially to Compuware's third-quarter growth, rising 37 percent from $15.4 million in third-quarter 1992 to $21.2 million in third-quarter 1993.
 "Because we want to sustain this growth and build on our position as a world leader in programmer productivity software, we're making significant investments in technology," said Karmanos, "and are aggressively recruiting to attract and retain the industry's best computer professionals for our development staffs which create and support those technologies."
 Professional Services Division Expands Business, Revenues
 Compuware's Professional Services Division experienced a revenue increase of $4.6 million, or 42 percent, rising from $10.9 million in third-quarter fiscal 1992 to $15.5 million in third-quarter fiscal 1993. Revenues for the first nine months reached $44.5 million, an increase of $12.3 million, or 38 percent over the first nine months of fiscal 1992. The increase was due primarily to increased business at existing clients in the company's Columbus, Ohio, branch, and to a lesser extent in its Farmington Hills and Bethesda, Md., branches.
 "Our Professional Services Division continues also to realize unparalleled growth, with high utilization of all billable personnel," Karmanos said. "To support that growth, Professional Services will continue to aggressively target the largest sectors of this industry, including manufacturing, communications and financial markets in the United States and Canada."
 Initial Public Offering Completed in December
 On Dec. 22, 1992, Compuware closed an initial public offering of 5.5 million shares of common stock. The per-share price of the initial offering was $22. The stock closed up $8.75 at $30.75 at the end of business Jan. 22.
 Compuware Corporation, headquartered in Farmington Hills, develops, markets and supports an integrated set of systems software products which improve the productivity of programmers and analysts in application program testing, test data preparation, error analysis and maintenance. The company also offers a broad range of data processing professional services, including business systems analysis, design, programming, and implementation, along with software conversion and systems planning and consulting.
 COMPUWARE CORPORATION AND SUBSIDIARIES
 CONSOLIDATED BALANCE SHEETS
 (In Thousands)
 Dec. 31, March 31,
 1992 1992
 ASSETS:
 CURRENT ASSETS:
 Cash and cash equivalents $113,432 $5,068
 Accounts receivable, net 65,743 54,578
 Deferred tax asset 20,312 24,561
 Prepaid expenses and other current assets 2,557 977
 Total current assets 202,044 85,184
 PROPERTY AND EQUIPMENT, LESS ACCUMULATED
 DEPRECIATION AND AMORTIZATION 9,170 8,235
 CAPITALIZED SOFTWARE, LESS
 ACCUMULATED AMORTIZATION 27,247 27,583
 Other:
 Excess of cost of investment over equity
 in net assets acquired, less
 accumulated amortization 2,200 2,248
 Covenant not to compete 1,250 2,025
 Maintenance contracts acquired 6,207 7,245
 Notes receivable, related party 460 2,313
 Other 1,629 657
 Total other assets 11,746 14,488
 TOTAL ASSETS $250,207 $135,490
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES:
 Accounts payable $7,560 $8,830
 Accrued expenses 16,812 38,318
 Current maturities of long-term debt 5,018 5,729
 Deferred revenue 55,238 46,584
 Income taxes payable 2,529 1,162
 Total current liabilities 87,157 100,623
 LONG-TERM DEBT, LESS CURRENT MATURITIES --- 2,349
 DEFERRED INCOME TAXES 4,762 3,414
 Total liabilities 91,919 106,386
 PREFERRED STOCK SUBJECT TO REDEMPTION --- 7,846
 SHAREHOLDERS' EQUITY:
 Preferred stock --- 30,000
 Common stock 350 39
 Additional paid-in capital 141,462 ---
 Retained earnings (deficit) 16,219 (8,448)
 Foreign currency translation adjustment 257 133
 Total 158,288 21,724
 Less loan receivable from Employee Stock
 Ownership Plan --- 466
 Total shareholders' equity 158,288 21,258
 TOTAL LIABILITIES AND
 SHAREHOLDERS' EQUITY $250,207 $135,490
 COMPUWARE CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In Thousands, Except Per-Share Data)
 (unaudited)
 Quarter Ended Nine Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 REVENUES:
 Software license fees $25,530 $21,096 $60,013 $45,126
 Maintenance fees 21,223 15,442 61,256 44,349
 Professional services fees 15,494 10,894 44,488 32,185
 Total revenues 62,247 47,432 165,757 121,660
 OPERATING EXPENSES:
 Cost of software license fees 2,382 1,965 6,021 5,491
 Cost of maintenance 2,865 3,555 8,140 10,120
 Cost of professional services 14,204 9,948 40,690 28,887
 Software product development 4,358 3,854 12,907 10,294
 Sales and marketing 16,972 14,374 46,607 39,356
 Administrative and general 4,353 4,487 14,080 12,131
 Purchased research and
 development --- --- --- 20,429
 Restructuring costs --- --- --- 621
 Total operating expenses 45,134 38,183 128,445 127,329
 INCOME (LOSS) FROM
 OPERATIONS 17,113 9,249 37,312 (5,669)
 OTHER INCOME (EXPENSES) (56) (429) (296) 316
 INCOME (LOSS) BEFORE
 INCOME TAXES 17,057 8,820 37,016 (5,353)
 INCOME TAX PROVISION 5,220 2,496 11,327 3,368
 NET INCOME (LOSS) 11,837 6,324 25,689 (8,721)
 Dividends on preferred stock 78 159 314 477
 Earnings (loss) attributable
 to common shareholders $11,759 $6,165 $25,375 ($9,198)
 Pro forma net income (loss)
 per common share $.36 $.19 $.76 ($.30)
 Pro forma weighted average
 number of common and common
 equivalent shares
 outstanding 32,408 32,240 33,188 30,865
 -0- 1/25/93
 /CONTACT: W. James Prowse or Chris Norris of Compuware Corporation, 313-737-7300; or Ray Eisbrenner or Michael Scholl of Eisbrenner Public Relations, 313-641-1446, for Compuware Corporation/
 (CPWR)


CO: Compuware Corporation ST: Michigan IN: CPR SU: ERN

SM-JS -- DE034 -- 8783 01/25/93 17:41 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 25, 1993
Words:1254
Previous Article:FIRST NATIONAL BANK CORP. POSTS IMPROVED FOURTH-QUARTER, ANNUAL RESULTS
Next Article:CRAY COMPUTER ANNOUNCES SUCCESSFUL BENCHMARKING OF ITS CRAY-3 SUPERCOMPUTER SYSTEM
Topics:


Related Articles
COMPUWARE CORPORATION ANNOUNCES 41% INCREASE IN THIRD-QUARTER NET INCOME
COMPUWARE CORPORATION REPORTS SECOND-QUARTER RESULTS
COMPUWARE ANNOUNCES PRELIMINARY FOURTH QUARTER ESTIMATES
/C O R R E C T I O N -- COMPUWARE CORPORATION/(Correction Notice)
Compuware Corporation Reports Strong Second Quarter Growth
Compuware Corporation Reports Third-Quarter Results and Announces Board of Directors Approve Stock Split
Compuware Corporation Reports Strong Second Quarter Growth And Announces Stock Split
Compuware Corporation Reports Strong Third Quarter Growth.
Compuware Reports Record First Quarter Earnings.
Compuware Estimates Meeting or Exceeding $.33 Analysts' Consensus.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters