|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 will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Jul. 27, 2016 06:30 AM EDT Reads: 1,452
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Jul. 27, 2016 04:45 AM EDT Reads: 2,260
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Jul. 27, 2016 04:30 AM EDT Reads: 2,492
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
Jul. 27, 2016 04:00 AM EDT Reads: 1,559
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Jul. 27, 2016 02:15 AM EDT Reads: 2,599
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
Jul. 27, 2016 02:15 AM EDT Reads: 1,449
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Jul. 27, 2016 12:00 AM EDT Reads: 1,943
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jul. 26, 2016 11:00 PM EDT Reads: 2,607
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Jul. 26, 2016 11:00 PM EDT Reads: 2,009
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 26, 2016 10:45 PM EDT Reads: 1,369
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
Jul. 26, 2016 09:00 PM EDT Reads: 2,053
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Jul. 26, 2016 08:00 PM EDT Reads: 380
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
Jul. 26, 2016 07:15 PM EDT Reads: 1,938
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 26, 2016 06:30 PM EDT Reads: 2,143
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Jul. 26, 2016 05:45 PM EDT Reads: 1,833
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Jul. 26, 2016 04:30 PM EDT Reads: 1,101
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
Jul. 26, 2016 04:30 PM EDT Reads: 1,036
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Jul. 26, 2016 04:00 PM EDT Reads: 1,058
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Jul. 26, 2016 03:45 PM EDT Reads: 1,726
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Jul. 26, 2016 03:15 PM EDT Reads: 412