DETROIT (WWJ) — The Detroit software and IT services company Compuware Corp. (Nasdaq: CPWR) Thursday reported net income of $16.3 million or 7 cents a share in the second quarter of its fiscal year, which ended Sept. 30.
That’s up 40 percent from $10.6 million or 5 cents a share in the same quarter a year earlier.
Revenue for the quarter was $228.1 million, up 3.4 percent from $220.6 million a year earlier.
Wall Street responded favorably to the report. In the regular trading day before the release, Compuware stock fell 9 cents a share to $10.52. But in after hours trading the stock recouped that loss and a bit more, rising 10 cents to $10.62.
Among components of revenue, software license fees were $35.7 million, up 12.7 percent from last year. Software maintenance fees were $100.5 million, down 1.7 percent from last year. Subscription fees were $20.7 million, up 2.1 percent from last year. And professional services revenue was $46.7 million, up 1.7 percent from last year. Application services fees were $24.5 million, up 19.4 percent from last year.
For the six months, net income was $26.3 million or 12 cents a share, up from $21.1 million or 10 cents a share in the same half of the prior fiscal year. Revenue for the six months was $455.6 million, up from $446.8 million in the first half of the prior fiscal year.
Compuware president and CEO Bob Paul called the quarter “solid … for Compuware, providing us with a lot of positive momentum going into the second half of the fiscal year. The quarter was highlighted by strength in Covisint’s first public quarter, strong growth in APM (application performance monitoring), and significant progress toward stabilization of the mainframe business. On top of posting double-digit total revenue and license growth, the APM business unit also dramatically improved its contribution margin by 195 percent. And all of this was accomplished in a challenging macro-economic environment. APM’s results this quarter clearly indicate that our strategy to drive profitable growth is working. The second quarter was also successful in the furthering of our shareholder value creation initiatives, underscored by the tremendous progress we continue to make in terms of business optimization and cost rationalization. Our efforts in this regard resulted in substantial EPS growth for the quarter, as emphasized in the non-GAAP EPS.”
The company also released a “non-GAAP” financial figure that excludes stock-based compensation, amortization of acquired software and intangible assets, restructuring charges, advisory fees connected with shareholder actions, and provision for income taxes on those adjustments. For the quarter the non-GAAP net income was $28.5 million for the quarter, up from $18.3 million a year earlier. For the six months, it was $50.9 million, up from $37.4 million.
To listen to a replay of a conference call discussing these results, call (800) 475-6710 in the United States or (320) 365-3844 elsewhere, using the pass code 303716.