|By Business Wire||
|May 22, 2014 04:36 PM EDT||
Conference call time should be 5:30 p.m. Eastern time (instead of 5 p.m. Eastern time).
The corrected release reads:
COMPUWARE CORPORATION REPORTS FOURTH QUARTER AND FULL FISCAL YEAR 2014 RESULTS
Compuware Corporation (Nasdaq: CPWR):
- Non-GAAP EPS of $0.50 per share in FY’14, up 25 percent y/y; Q4 non-GAAP EPS of $0.10 per share
- GAAP EPS of $0.32 per share in FY’14, up 500 percent y/y; Q4 GAAP EPS of $0.09 per share
- Total FY’14 revenue of $721M, flat with prior year; total Q4 revenue of $183M
- APM y/y license and total revenue growth of 16 percent and nine percent, respectively; APM contribution margin increases 761 percent over last year
- Mainframe contribution margin improves to 75 percent from 73 percent last year; highest maintenance renewal rate in last five years at 94 percent; total Mainframe revenue for the year was $296M
- $162M operating cash flow in FY’14; $300M cash-on-hand including approximately $50M from Covisint
- Eliminated $56M in Corporate and Shared Services expenses in FY’14; 25 percent higher than projection
- Issues FY 2015 outlook; plans to triple operating income and margin from FY14 – FY16; additional shareholder value opportunities in FY15; and the potential strategic separation of APM and Mainframe businesses
Compuware Corporation (Nasdaq: CPWR), the technology performance company, today announced financial results for its fourth quarter and fiscal year ended March 31, 2014.
Non-GAAP net income for the year was $111.0 million, or $0.50 per diluted share, compared to $87.8 million, or $0.40 per diluted share in fiscal 2013. GAAP net income for the year was $71.6 million, or $0.32 per diluted share, compared to ($17.3) million, or ($0.08) per share in the year-ago period.
Non-GAAP net income for the quarter was $22.1 million, or $0.10 per diluted share, compared to $18.2 million, or $0.08 per diluted share in the year-ago period. GAAP net income for the fourth quarter was $20.3 million, or $0.09 per diluted share, compared to ($63.7) million, or ($0.30) per share in the year-ago period.
(Included in the financial tables is a reconciliation between non-GAAP and GAAP results.)
“The key takeaways from our fiscal 2014 results are that our core APM and Mainframe businesses have strengthened and are getting stronger. Also, we have made tremendous progress on our cost rationalization initiative, exceeding our expense-reduction goal by 25 percent for the year,” said Compuware CEO Bob Paul. “We are now focused on building on this momentum in fiscal 2015 by continuing to drive growth and profitability in APM while further stabilizing Mainframe; completing our comprehensive business optimization work; and delivering even greater return to shareholders through additional capital return opportunities.
“I am extremely pleased with the substantial progress we continue to make in our strategic restructuring,” continued Paul. “We are now in the final stage of our transformational journey and, as a logical and final step in the process, we are exploring the feasibility of separating our APM and Mainframe operations, which we believe would allow these very distinct businesses competing in diverse market categories to build on their leadership positions and thrive as independent entities. We believe the rationale for such a separation is very compelling for everyone involved—including shareholders, customers and employees—in terms of return, value and opportunity. We will have more to report on this possibility in future periods as our due diligence progresses.”
Fiscal Year 2014 Results
During the fiscal year ended March 31, 2014:
- Total revenues were approximately $720.8 million, down 0.4 percent from FY’13
- Software license fees were approximately $159.2 million, flat from prior year
- Maintenance fees were approximately $353.4 million, down approximately 2.2 percent from FY’13
- Subscription fees were approximately $80.9 million, up approximately 1.2 percent from FY’13
- Professional services revenues were approximately $30.2 million, down approximately 8.2 percent from FY’13
- Application services fees were approximately $97.1 million, up approximately 7.1 percent from FY’13
Fourth Quarter Fiscal Year 2014 Results
During the company’s fourth quarter:
- Total revenues were approximately $183.4 million, down approximately 0.5 percent from Q4 last year
- Software license fees were approximately $43.7 million, up approximately 5.8 percent from Q4 last year
- Maintenance fees were approximately $87.7 million, down approximately 1.3 percent from Q4 last year
- Subscription fees were approximately $19.8 million, down approximately 2.6 percent from Q4 last year
- Services fees were approximately $7.9 million, down approximately 4.4 percent from Q4 last year
- Application services fees were approximately $24.4 million, down approximately 5.1 percent from Q4 last year
Fiscal 2015 Expectations
The following outlook is based on our expectation of continued strength in our APM business in terms of growth and profitability, further stabilization in our Mainframe business with a sustained strong operating margin, and the completion of our cost-rationalization initiative.
For fiscal 2015, Compuware expects the following:
- Total revenues of $720-$735M.
- Non-GAAP earnings per share of $0.41-$0.45.
- Cash flow from operations of $105-$110M.
Fourth Quarter Fiscal Year 2014 Highlights
During the fourth quarter, Compuware:
- Reached an agreement with Elliott Management that included the nomination of two new members to Compuware’s Board of Directors and provided for the creation of an advisory committee to explore enhancing the company’s value and the value it delivers to shareholders.
- Signed and completed an agreement for Marlin Equity Partners to acquire Compuware's Changepoint, Professional Services and Uniface business units.
- Introduced three new members — Dave Hansen, Sam Inman III and Philip Lay — to the Covisint Board of Directors.
- Announced that Ovum named Compuware an APM market leader in its "Ovum Decision Matrixs.”
- Opened a new Center of Excellence for SAP solutions in the Partner Port (near SAP headquarters), where more than 100 SAP partners and other companies with close relationships with SAP have office space in Walldorf, Germany.
- Announced that Covisint was chosen as an approved technology provider for the Direct Marketplace for Michigan, established by the Michigan Health Information Network Shared Services, simplifying and securing the Network's ability to share patient health information between health providers.
- Enhanced and modernized the 2014 Compuware APM Benchmarks, allowing companies to better measure and compare the performance of their entire digital experience against industry competitors and peers across mobile, web, Last Mile and transactions.
- Announced deep enhancements to Compuware Strobe, a key component of Compuware APM for Mainframe.
- Released key findings from an independent global CIO survey investigating the use of the mainframe within the enterprise, including the looming skills shortage of mainframe developers and its concern for CIOs.
- Extended the partnership between SAP company hybris software and Compuware APM to empower collaboration among developers, QA and production teams.
- Announced that analyst firm Ptak Associates LLC penned a report discussing the benefits of new integrations between Compuware’s Mainframe Application Performance solutions and Developer Productivity solutions.
- Expanded the Covisint healthcare platform globally to support the growing international need for secure health information exchange.
- Announced that Covisint achieved full accreditation with the Direct Trusted Agent Accreditation Program from DirectTrust.org and the Electronic Healthcare Network Accreditation Commission.
- Announced new innovations to the Compuware Workbench, a modern, intuitive Eclipse-based mainframe development environment.
- Enhanced Compuware APM for Big Data to offer support and out-of-the-box dashboards that enable organizations to optimize big data projects through unmatched visibility into Hadoop, NoSQL and Cassandra deployments.
- Introduced with Milliman, Inc., a premier global consulting and actuarial firm, the Covisint Predictive Analytics solution, designed for healthcare providers entering into value-based, capitated-revenue arrangements.
- Announced that a global, top 10 oil company demonstrated at the Microsoft Global Energy Forum how it uses the Covisint platform to increase business agility and drastically reduce security risks
- Released its new Data Center Real User Monitoring solution.
- Announced that Covisint earned "top performing enterprise HIE vendor" for the "payer/insurer-centric" category by Black Book International.
- Released an APM solution for Hadoop on Amazon Elastic MapReduce, enabling organizations to tame big data at scale and allowing customers to gain faster business value at lower cost, while furthering Compuware APM's ability to provide visibility and troubleshooting insight into big data workloads.
- Announced that Database Trends and Applications Magazine named Compuware APM for Big Data a Trend-Setting Product in Data for 2014.
- Enabled Hyundai Genesis owners to access vital vehicle information through Google Glass by way of the Covisint cloud engagement platform.
- Announced the 2013 winners of its annual Best of the Web awards, honoring top performing sites across five major industries.
Use of Non-GAAP Financial Measures
In an effort to provide investors with additional information regarding the Company's results as determined by U.S. generally accepted accounting principles (GAAP), the Company has also disclosed in this press release and the accompanying tables the following non-GAAP information: (a) non-GAAP net income and (b) non-GAAP diluted earnings per share. Each of these financial measures excludes the impact of certain items and, therefore, has not been calculated in accordance with GAAP. These non-GAAP financial measures exclude share-based compensation expense; the amortization of intangible assets; a goodwill impairment charge; restructuring charges; advisory fees associated with certain shareholder actions; the related tax impacts of these items; and the gain on divestiture, net of tax. Each of the non-GAAP adjustments is described in more detail below. This press release also contains a reconciliation of each of these non-GAAP measures to its most comparable GAAP financial measure.
We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our operating results because they exclude amounts that management and the board of directors do not consider part of core operating results when assessing the performance of the organization. We believe that inclusion of these non-GAAP financial measures provides consistency and comparability with past reports of financial results and provides consistency in calculations by outside analysts reviewing our results. Accordingly, we believe these non-GAAP financial measures are useful to investors in allowing for greater transparency of supplemental information used by management.
While we believe that these non-GAAP financial measures provide useful supplemental information, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Items such as share-based compensation expense; the amortization of intangible assets; a goodwill impairment charge; restructuring charges; advisory fees associated with certain shareholder actions; the related tax impacts of these items; and the gain on divestiture, net of tax that are excluded from our non-GAAP financial measures can have a material impact on net earnings. As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, net earnings, cash flow from operations or other measures of performance prepared in accordance with GAAP. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reconciling the non-GAAP financial measures to their most comparable GAAP financial measure. Investors are encouraged to review the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures that are included elsewhere in this press release.
The following discusses the reconciling items from our non-GAAP financial measures to the most comparable GAAP financial measures:
Share-based compensation expense. Our non-GAAP financial measures exclude the compensation expenses required to be recorded by GAAP for equity awards to employees and directors. Management and the board of directors believe it is useful in evaluating corporate performance during a particular time period to review the supplemental non-GAAP financial measures, excluding expenses related to share-based compensation, because these costs are generally fixed at the time an award is granted, are then expensed over several years and generally cannot be changed or influenced by management once granted.
Amortization of intangible assets. Our non-GAAP financial measures exclude costs associated with the amortization of intangible assets. Management and the board of directors believe it is useful in evaluating corporate performance during a particular time period to review the supplemental non-GAAP financial measures, excluding amortization of intangible assets, because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by management after the acquisition.
Goodwill impairment charge. Our non-GAAP financial measures exclude an impairment charge associated with a decline in the estimated fair value of our professional services business unit. Management and the board of directors believe it is useful in evaluating corporate performance during a particular time period to review the supplemental non-GAAP financial measures, excluding goodwill impairment to provide comparability and consistency with historical operating results.
Restructuring charges. Our non-GAAP financial measures exclude restructuring charges, and any subsequent changes in estimates, as they relate to our corporate restructuring and exit activities, including asset impairments resulting from a fourth quarter fiscal 2013 operational review. Management and the board of directors believe it is useful in evaluating corporate performance during a particular time period to review the supplemental non-GAAP financial measures, excluding restructuring charges, in order to provide comparability and consistency with historical operating results.
Advisory fees associated with certain shareholder actions. During the third quarter of fiscal 2013, the Company received an unsolicited, nonbinding offer to purchase the outstanding shares of the Company from a shareholder. The Company has incurred costs of approximately $3 million for unplanned consultant fees to review the offer, analyze the business and review additional requests for information from other interested parties. Management and the board of directors believe it is useful in evaluating corporate performance during a particular time period to review the supplemental non-GAAP financial measures, excluding such costs, in order to provide comparability and consistency with historical operating results.
Provision for income taxes on above pre-tax non-GAAP adjustments. Our non-GAAP financial measures exclude the tax impact of the above pre-tax non-GAAP adjustments. This amount is calculated using the tax rates of each country to which these pre-tax non-GAAP adjustments relate. Management excludes the non-GAAP adjustments on a net-of-tax basis in evaluating our performance. Therefore, we exclude the tax impact of these charges when presenting non-GAAP financial measures.
Gain on divestiture of business segments, net of tax. Our non-GAAP financial measures exclude the gain from the divestiture of our Changepoint, Professional Services and Uniface business segments, net of tax. This gain is included in “Income (loss) from discontinued operations, net of tax” in the statements of operations. This gain is not comparable to activity in the other periods presented. We believe it is useful in evaluation corporate performance during a particular time period to review the supplemental non-GAAP financial measures excluding the effect of this gain in order to provide comparability and consistency with historical results.
Compuware Corporation, the technology performance company, provides software, experts and best practices to ensure technology works well and delivers value. Compuware solutions make the world’s most important technologies perform at their best for leading organizations worldwide, including 46 of the top 50 Fortune 500 companies and 12 of the top 20 most visited U.S. web sites. Learn more at: http://www.compuware.com.
Conference Call Information
Compuware will today hold a conference call to discuss these results at 5:30 p.m. Eastern time (21:30 GMT). To join the conference call, interested parties in the United States should call 800-288-8974. For international access, the conference call number is +1-612-332-0932. No password is required.
A conference call replay will also be available. The United States replay number will be 800-475-6701, and the international replay number will be +1-320-365-3844. The replay passcode will be 324275. Additionally, investors can listen to the conference call via webcast by visiting the Compuware Corporation Investor Relations web site at http://www.compuware.com.
Certain statements in this release that are not historical facts, including those regarding the Company’s future plans, objectives and expected performance, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. While we believe any forward-looking statements we have made are reasonable, actual results could differ materially since the statements are based on our current expectations and are subject to risks and uncertainties. These risks and uncertainties are discussed in the Company’s reports filed with the Securities and Exchange Commission. Readers are cautioned to consider these factors when relying on such forward-looking information. The Company does not undertake, and expressly disclaims any obligation, to update or alter its forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
|COMPUWARE CORPORATION AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|AS OF MARCH 31,|
|Cash and cash equivalents||$||300,059||$||89,873|
|Accounts receivable, net||385,232||424,587|
|Deferred tax asset, net||35,871||37,618|
|Income taxes refundable||4,161||4,951|
|Prepaid expenses and other current assets||27,231||36,210|
|Total current assets||752,554||593,239|
|PROPERTY AND EQUIPMENT, LESS ACCUMULATED|
|DEPRECIATION AND AMORTIZATION||287,013||302,492|
|CAPITALIZED SOFTWARE AND OTHER|
|INTANGIBLE ASSETS, NET||98,762||116,663|
|DEFERRED TAX ASSET, NET||16,514||31,754|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Income taxes payable||33,093||14,507|
|Total current liabilities||537,354||555,080|
|LONG TERM DEBT||-||18,000|
|DEFERRED TAX LIABILITY, NET||36,391||63,650|
|Additional paid-in capital||828,264||713,580|
|Accumulated other comprehensive loss||(6,915||)||(18,784||)|
|Total Compuware shareholders' equity||1,080,778||998,226|
|Total shareholders' equity||1,101,034||998,226|
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY||$||1,997,109||$||1,973,282|
|COMPUWARE CORPORATION AND SUBSIDIARIES|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(In Thousands, Except Per Share Data)|
|THREE MONTHS ENDED||TWELVE MONTHS ENDED|
|MARCH 31,||MARCH 31,|
|Software license fees||$||43,666||$||41,290||$||159,197||$||159,093|
|Application services fees||24,400||25,713||97,135||90,694|
|Cost of software license fees||5,200||4,698||20,310||18,986|
|Cost of maintenance fees||7,488||7,562||28,387||31,621|
|Cost of subscription fees||7,974||8,087||32,406||30,264|
|Cost of services||6,661||7,534||25,662||31,777|
|Cost of application services||30,587||25,830||117,155||83,298|
|Technology development and support||21,418||23,439||86,181||95,356|
|Sales and marketing||58,883||58,714||216,115||220,714|
|Administrative and general||27,737||37,271||134,695||153,733|
|Total operating expenses||169,721||188,886||672,901||681,500|
|INCOME FROM OPERATIONS||13,727||(4,451||)||47,855||42,404|
|OTHER INCOME, NET||(59||)||(1,080||)||3,288||(1,170||)|
|INCOME FROM CONTINUING OPERATIONS|
|BEFORE INCOME TAX PROVISION||13,668||(5,531||)||51,143||41,234|
|INCOME TAX PROVISION (BENEFIT)||5,553||(8,755||)||12,944||15,917|
|NET INCOME (LOSS) FROM CONTINUING OPERATIONS|
|INCLUDING NON-CONTROLLING INTEREST||8,115||3,224||38,199||25,317|
|INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX||10,867||(66,877||)||29,926||(42,568||)|
|NET INCOME INCLUDING NON-CONTROLLING INTEREST||18,982||(63,653||)||68,125||(17,251||)|
|Less: Net income (loss) attributable to the|
|non-controlling interest in Covisint Corporation||(1,272||)||-||(3,458||)||-|
|NET INCOME ATTRIBUTABLE TO COMPUWARE CORP||$||20,254||$||(63,653||)||$||71,583||$||(17,251||)|
|Amounts attributable to Compuware common shareholders|
|Income from continuing operations||8,115||3,224||38,199||25,317|
|Loss attributable to non-controlling interest||(1,272||)||-||(3,458||)||-|
|Income from continuing operations, net of tax||9,387||3,224||41,657||25,317|
|Income (loss) from discontinued operations, net of tax||10,867||(66,877||)||29,926||(42,568||)|
|Net income (loss) attributable to Compuware common shareholders||$||20,254||$||(63,653||)||$||71,583||$||(17,251||)|
|Diluted earnings (loss) per share:|
|Diluted earnings (loss) per share||$||0.09||$||(0.30||)||$||0.32||$||(0.08||)|
|Weighted-average common shares outstanding||218,417||212,516||215,952||214,627|
|Dilutive effect of stock awards||4,266||6,262||5,228||4,953|
|COMPUWARE CORPORATION AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF CASH FLOWS|
|TWELVE MONTHS ENDED|
|CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:|
|Net income (loss) including non-controlling interest||$||68,125||$||(17,251||)|
|Adjustments to reconcile net income (loss) to cash provided|
|Depreciation and amortization||63,427||65,919|
|Gain on sale of business units||(34,195||)||-|
|Stock award compensation||40,881||31,677|
|Deferred income taxes||(14,112||)||(8,724||)|
|Net change in assets and liabilities, net of effects from|
|Prepaid expenses and other assets||9,121||8,359|
|Accounts payable and accrued expenses||(9,450||)||(12,611||)|
|Net cash provided by operating activities||161,526||132,412|
|CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:|
|Property and equipment||(15,535||)||(24,274||)|
|Proceeds from divestiture of business units||112,000||-|
|Net cash provided by (used in) investing activities||76,440||(55,259||)|
|CASH FLOWS USED IN FINANCING ACTIVITIES:|
|Proceeds from borrowings||51,000||142,800|
|Payments on borrowings||(69,000||)||(169,800||)|
|Net proceeds from exercise of stock awards including excess tax benefits||39,012||23,419|
|Employee contribution to common stock purchase plans||2,401||2,804|
|Repurchase of common stock||(9,712||)||(81,741||)|
|Net cash used in financing activities||(27,434||)||(83,232||)|
|EFFECT OF EXCHANGE RATE CHANGES ON CASH||(346||)||(3,228||)|
|NET CHANGE IN CASH AND CASH EQUIVALENTS||210,186||(9,307||)|
|CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD||89,873||99,180|
|CASH AND CASH EQUIVALENTS AT END OF PERIOD||$||300,059||$||89,873|
|COMPUWARE CORPORATION AND SUBSIDIARIES|
|(Dollar Amounts In Thousands)|
|MAR 31,||YR - YR|
|Total Product Software Revenue by Geography|
|Deferred License Fees|
|Deferred Application Services||$||27,829||$||35,173||(20.9||%)|
|Total Company Headcount||3,066||4,491||(31.7||%)|
|Total DSO (Billed)||87.7||83.8|
|Stock-based compensation expense|
|Cost of license fees||$||-||$||1||(100.0||%)|
|Cost of maintenance fees||53||159||(66.7||%)|
|Cost of subscription fees||26||40||(35.0||%)|
|Cost of services||6||21||(71.4||%)|
|Cost of application services||3,047||524||481.5||%|
|Technology development and support||139||495||(71.9||%)|
|Sales and marketing||2,910||2,144||35.7||%|
|Administrative and general||1,850||3,004||(38.4||%)|
|Total stock-based compensation expense before income taxes||$||8,355||$||11,014||(24.1||%)|
|COMPUWARE CORPORATION AND SUBSIDIARIES|
|BUSINESS UNIT RESULTS OF OPERATIONS|
|March 31, 2014|
|Software license fees||$||30,345||$||13,321||-||-||$||43,666|
|Application services fees||-||-||$||24,400||-||24,400|
|Total operating expenses||79,994||19,688||31,126||38,913||169,721|
|Income (loss) from operations||$||3,943||$||55,423||$||(6,726||)||$||(38,913||)||$||13,727|
|Contribution margin %||4.7||%||73.8||%||(27.6||%)||7.5||%|
|Operating expenses include:|
|Stock awards compensation||$||2,828||$||188||$||3,061||$||2,304||$||8,381|
|Amortization of purchased software||$||1,613||$||-||$||94||$||-||$||1,707|
|Amortization of other acquired intangible assets||$||1,733||$||-||$||77||$||-||$||1,810|
|March 31, 2013|
|Software license fees||$||26,328||$||14,962||-||-||$||41,290|
|Application services fees||-||-||$||25,713||-||25,713|
|Income (loss) from operations||$||(684||)||$||58,030||$||(640||)||$||(61,157||)||$||(4,451||)|
|Contribution margin %||(0.9||%)||71.2||%||(2.5||%)||(2.4||%)|
|Operating expenses include:|
|Stock awards compensation||$||1,956||$||459||$||524||$||8,021||$||10,960|
|Amortization of purchased software||$||2,293||$||-||$||112||$||-||$||2,405|
|Amortization of other acquired intangible assets||$||1,704||$||-||$||104||$||-||$||1,808|
COMPUWARE CORPORATION AND SUBSIDIARIES
BUSINESS UNIT RESULTS OF OPERATIONS
|Twelve Months Ended:||APM||Mainframe||Services||Expenses||Total|
|March 31, 2014|
|Software license fees||$||116,373||$||42,824||-||-||$||159,197|
|Application services fees||-||-||$||97,135||-||97,135|
|Total operating expenses||298,924||74,384||120,233||179,360||672,901|
|Income (loss) from operations||$||28,443||$||221,870||$||(23,098||)||$||(179,360||)||$||47,855|
|Contribution margin %||8.7||%||74.9||%||(23.8||%)||6.6||%|
|Operating expenses include:|
|Stock awards compensation||$||8,187||$||597||$||17,333||$||14,569||$||40,686|
|Amortization of purchased software||$||8,079||$||-||$||376||$||-||$||8,455|
|Amortization of other acquired intangible assets||$||6,861||$||-||$||349||$||-||$||7,210|
|March 31, 2013|
|Software license fees||$||100,565||$||58,528||-||-||$||159,093|
|Application services fees||-||-||$||90,694||-||90,694|
|Income (loss) from operations||$||(4,302||)||$||241,352||$||4,610||$||(199,256||)||$||42,404|
|Contribution margin %||(1.4||%)||72.5||%||5.1||%||5.9||%|
|Operating expenses include:|
|Stock awards compensation||$||5,790||$||2,577||$||1,629||$||21,164||$||31,160|
|Amortization of purchased software||$||9,048||$||-||$||556||$||-||$||9,604|
|Amortization of other acquired intangible assets||$||7,139||$||-||$||442||$||-||$||7,581|
|RECONCILIATION OF GAAP TO NON-GAAP|
|(In Thousands, Except Per Share Data)|
THREE MONTHS ENDED
TWELVE MONTHS ENDED
NET INCOME ATTRIBUTABLE TO COMPUWARE CORPORATION
|ADJUSTMENTS EXCLUDING IMPACT OF NON-CONTROLLING INTEREST|
|Stock compensation (excl. restructuring)||7,393||6,442||35,045||27,105|
|Amortization of purchased software||1,689||2,405||8,418||9,604|
|Amortization of acquired intangibles||1,795||1,808||7,178||7,581|
|Income tax effect of above adjustments||(6,327||)||(19,887||)||(27,978||)||(30,420||)|
|Gain on divestiture of business units, net of tax||(9,529||)||(9,529||)|
|NON-GAAP NET INCOME||$||22,103||$||18,179||$||111,009||$||87,829|
|DILUTED EARNINGS PER SHARE - GAAP||$||0.09||$||(0.30||)||$||0.32||$||(0.08||)|
|RECALCULATED USING DILUTIVE SHARES||$||0.09||$||(0.29||)||$||0.32||$||(0.08||)|
|ADJUSTMENTS EXCLUDING IMPACT OF NON-CONTROLLING INTEREST|
|Stock compensation (excl. restructuring)||0.03||0.03||0.16||0.12|
|Amortization of purchased software||0.01||0.01||0.04||0.04|
|Amortization of acquired intangibles||0.01||0.01||0.03||0.03|
|Income tax effect of above adjustments||(0.03||)||(0.09||)||(0.13||)||(0.14||)|
|Gain on divestiture of business units, net of tax||(0.04||)||
|NON-GAAP NET INCOME||$||0.10||$||0.08||$||0.50||$||0.40|
|Diluted shares outstanding||222,683||218,778||221,180||219,580|
|EPS amounts may not add to the total due to rounding|
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nov. 23, 2014 12:00 PM EST Reads: 1,560
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
Nov. 23, 2014 07:45 AM EST Reads: 1,414
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Nov. 22, 2014 10:00 PM EST Reads: 1,250
ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ -- IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...
Nov. 22, 2014 05:30 PM EST Reads: 1,422
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
Nov. 22, 2014 05:30 PM EST Reads: 1,383
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
Nov. 22, 2014 05:30 PM EST Reads: 1,222
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Nov. 21, 2014 09:15 PM EST Reads: 1,312
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
Nov. 21, 2014 08:00 PM EST Reads: 1,390
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
Nov. 21, 2014 08:00 PM EST Reads: 1,330
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nov. 21, 2014 07:00 PM EST Reads: 1,250
Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
Nov. 20, 2014 09:15 PM EST Reads: 1,346
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
Nov. 20, 2014 06:00 PM EST Reads: 1,294
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
Nov. 20, 2014 04:45 PM EST Reads: 1,081
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
Nov. 20, 2014 01:00 PM EST Reads: 1,544
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Nov. 20, 2014 12:30 PM EST Reads: 1,771
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
Nov. 18, 2014 09:00 PM EST Reads: 2,004
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
Nov. 18, 2014 08:15 PM EST Reads: 1,583
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
Nov. 18, 2014 08:15 PM EST Reads: 1,533
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Nov. 18, 2014 01:30 PM EST Reads: 1,996
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.
Nov. 13, 2014 05:00 AM EST Reads: 3,536