|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|
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, data security and privacy.
Jan. 25, 2015 07:45 PM EST Reads: 2,294
SYS-CON Media announced that Cisco, a worldwide leader in IT that helps companies seize the opportunities of tomorrow, has launched a new ad campaign in Cloud Computing Journal. The ad campaign, a webcast titled 'Is Your Data Center Ready for the Application Economy?', focuses on the latest data center networking technologies, including SDN or ACI, and how customers are using SDN and ACI in their organizations to achieve business agility. The Cisco webcast is available on-demand.
Jan. 25, 2015 07:00 PM EST Reads: 1,195
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...
Jan. 25, 2015 06:15 PM EST Reads: 3,778
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
Jan. 25, 2015 06:00 PM EST Reads: 2,966
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
Jan. 25, 2015 06:00 PM EST Reads: 2,699
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
Jan. 25, 2015 04:30 PM EST Reads: 3,006
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP and chief architect at BSQUARE Corporation; Seth Proctor, CTO of NuoDB, Inc.; and Andris Gailitis, C...
Jan. 25, 2015 04:00 PM EST Reads: 2,417
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “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. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
Jan. 25, 2015 04:00 PM EST Reads: 1,537
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
Jan. 25, 2015 03:00 PM EST Reads: 2,424
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 25, 2015 02:30 PM EST Reads: 2,231
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Jan. 25, 2015 02:15 PM EST Reads: 2,849
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
Jan. 25, 2015 02:00 PM EST Reads: 3,414
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.
Jan. 25, 2015 01:00 PM EST Reads: 3,762
“The age of the Internet of Things is upon us,” stated Thomas Svensson, senior vice-president and general manager EMEA, ThingWorx, “and working with forward-thinking companies, such as Elisa, enables us to deploy our leading technology so that customers can profit from complete, end-to-end solutions.” ThingWorx, a PTC® (Nasdaq: PTC) business and Internet of Things (IoT) platform provider, announced on Monday that Elisa, Finnish provider of mobile and fixed broadband subscriptions, will deploy ThingWorx® platform technology to enable a new Elisa IoT service in Finland and Estonia.
Jan. 25, 2015 11:00 AM EST Reads: 1,453
Advanced Persistent Threats (APTs) are increasing at an unprecedented rate. The threat landscape of today is drastically different than just a few years ago. Attacks are much more organized and sophisticated. They are harder to detect and even harder to anticipate. In the foreseeable future it's going to get a whole lot harder. Everything you know today will change. Keeping up with this changing landscape is already a daunting task. Your organization needs to use the latest tools, methods and expertise to guard against those threats. But will that be enough? In the foreseeable future attacks w...
Jan. 25, 2015 11:00 AM EST Reads: 2,854
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...
Jan. 25, 2015 11:00 AM EST Reads: 2,793
SYS-CON Events announced today that ActiveState, the leading independent Cloud Foundry and Docker-based PaaS provider, has been named “Silver Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. ActiveState believes that enterprises gain a competitive advantage when they are able to quickly create, deploy and efficiently manage software solutions that immediately create business value, but they face many challenges that prevent them from doing so. The Company is uniquely positioned to help address these challenges thro...
Jan. 25, 2015 11:00 AM EST Reads: 1,749
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
Jan. 25, 2015 10:45 AM EST Reads: 2,921
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Jan. 25, 2015 10:30 AM EST Reads: 2,250
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
Jan. 25, 2015 10:00 AM EST Reads: 2,048