Compuware Struts Its Stuff

Back on July's Q2 conference call, Compuware (Nasdaq: CPWR  ) CEO Peter Karmanos Jr. seemed peeved about the performance of his sales force, announcing that half the group might lose their jobs. The team appeared to take that message to heart, judging by the improvement Compuware enjoyed in Q3, which Karmanos dubbed a "heck of a quarter."

Revenue increased 4.6% to $302 million, while license revenue rose 23.4% to $70 million. Earnings per share, adjusted for restructuring charges, spiked 143% to $0.17 per share.

The Vantage product offering, which manages the delivery of information technology (IT) services, saw license revenue increase 68% to $21.5 million. A 108.4% surge in license revenues for Changepoint, which provides companies with a comprehensive view of their IT assets, contributed another $6.7 million.

Compuware's Covisint division, a web-based platform to help with supply-chain management, continues to grow. Q3 revenue spiked 40% to $10.1 million, a gain of roughly $477,000. Interestingly enough, the company mentioned the possibility of spinning Covisint into its own IPO.

Investors have undoubtedly been excited about web-based software players, bidding up shares for such firms as Salesforce.com (NYSE: CRM  ) and Taleo (Nasdaq: TLEO  ) . The IPO market for such companies has also been robust, with Constant Contact (Nasdaq: CTCT  ) and athenahealth (Nasdaq: ATHN  ) debuting since September. Their stock prices have also climbed significantly since they hit the market.

Despite Compuware's rapid, noticeable progress on all fronts, investors should remain cautious. Compuware has a history of volatility, and it's still competing against major rivals such as IBM (NYSE: IBM  ) and Hewlett-Packard (NYSE: HPQ  ) . Besides, it could easily take six months to engineer an IPO for Covisint. For Foolish investors, it's probably too early to tell whether Compuware is one heck of a stock.

Further Foolishness:


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 539420, ~/Articles/ArticleHandler.aspx, 12/20/2014 1:39:52 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement