COMPUWARE CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 29, 2013

Attached files

file filename
EX-99.2 - EXHIBIT 99.2 - COMPUWARE CORPex99_2.htm
8-K - COMPUWARE CORP 8-K 7-23-2013 - COMPUWARE CORPform8k.htm
Exhibit 99.1
 
 
NEWS RELEASE
COMPUWARE CORPORATION
Corporate Headquarters
One Campus Martius · Detroit, Michigan 48226
(313) 227-7300

For Immediate Release
July 23, 2013

Compuware Corporation Reports First Quarter, Fiscal Year 2014 Results
 
· Non-GAAP EPS of 10 cents per share, excluding charges for stock compensation, amortization of purchased software and acquired intangibles, restructuring and advisory fees
 
 
 · Total Q1 revenue of $227.5M, up slightly year-over-year
 
· Compuware Covisint and Changepoint Q1 total revenue increases by 17.1 and 17.2 percent year-over-year, respectively
 
· APM contribution margin improves by 6 percent from (6.9) percent to (0.8) percent year-over-year, as business unit focuses on profitable growth
 
· Strong operating cash flow of approximately $28.7M
 
DETROIT, July 23, 2013 -- Compuware Corporation (Nasdaq: CPWR), the technology performance company, today announced financial results for its first quarter, fiscal year 2014 ended June 30, 2013.

Non-GAAP net income for the quarter was $22.4 million, or $0.10 per diluted share, compared to $19.1 million, or $0.09 per diluted share in the year-ago period. GAAP net income for the first quarter was $10 million, or $0.05 per diluted share, compared to $10.5 million, or $0.05 per diluted share in the year-ago period.

(Included in the financial tables is a reconciliation between non-GAAP and GAAP results.)

“The first quarter was a good start to the year, and the results support our fiscal year 2014 forecast,” said Compuware President and CEO Bob Paul. “The quarter was marked by several positive developments, including the improvement of our sales pipelines, the release of key, innovative solution enhancements and the acquisition of several new, strategic customers in critical new growth areas. In addition to establishing strong momentum during the quarter, Q1 was also highlighted by the continued progress of our shareholder-creation initiatives, including the issuance of the company’s first-ever quarterly cash dividend and the furthering of our cost-rationalization efforts. Regarding these efforts, we remain on track to eliminate $45 million in corporate expenses in fiscal year 2014, as part of our larger goal of eliminating a minimum of $80 million to $100 million of these costs from the business over the next two years.”
 
First Quarter Fiscal Year 2014 Results
 
During the company's first quarter:
 
· Total revenues were approximately $227.5 million, up slightly over Q1 last year
 
· Software license fees were approximately $35.4 million, up approximately 4.2 percent from Q1 last year
Compuware Corporation Reports First Quarter, Fiscal Year 2014 Results
July 23, 2013
Page 2

· Maintenance fees were approximately $98.5 million, down approximately 4.3 percent from Q1 last year
 
· Subscription fees were approximately $20.8 million, up approximately 1.5 percent from Q1 last year
 
· Professional services revenues were approximately $48.7 million, up approximately 1.1 percent from Q1 last year
 
· Covisint revenues were approximately $24.1 million, up approximately 17.1 percent from Q1 last year; subscription fees up 22 percent year-over-year.
 
First Quarter Fiscal Year 2014 Highlights
 
During the first quarter, Compuware:
 
· Enhanced Abend-AID, the industry’s leading fault management solution, making it even easier to use, especially for staff unfamiliar with mainframe legacy systems.
 
· Announced enhancements to Compuware APM for Mainframe, the industry’s leading 24/7 end-to-end transaction management solution spanning the edge of the Internet, through distributed systems and into mainframe environments.
 
· Filed a registration statement on form S-1 with the Securities and Exchange Commission with respect to the issuance of shares of Covisint common stock.
 
· Announced several changes to the company’s Board of Directors, including the appointments of David Fubini, a senior director of McKinsey & Company, Inc., and Lee Roberts, the former chief executive officer of FileNet, to the company's Board of Directors, effective April 5, 2013. W. James Prowse retired from the Board, effective March 31, 2013. Additionally, Gurminder S. Bedi assumed the position of Chairman of the Board, replacing Peter Karmanos, Jr., who had retired from the Board on March 31, 2013.
 
· Introduced a new and enhanced Covisint supplier portal that significantly improves simplicity, usability, mobile accessibility and time-to-value.
 
· Announced the release of Compuware APM PureStack Technology™, the first solution to finally expose how IT infrastructure conditions impede the performance of critical business applications. Additionally, Compuware APM announced the convergence of dynaTracePurePath® Technology and the Gomez Performance Network, creating the industry’s most powerful User Experience Management (UEM) solution.
 
· Announced that Covisint debuted on Healthcare Informatics’ list of the nation’s top 100 healthcare IT vendors.
 
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 non-GAAP net income and 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 acquired software and intangible assets; restructuring charges; advisory fees associated with certain shareholder actions and business transformation; and the related tax impacts of these items. 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.
Compuware Corporation Reports First Quarter, Fiscal Year 2014 Results
July 23, 2013
Page 3

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 acquired software and intangible assets; restructuring charges; advisory fees associated with certain shareholder actions and business transformation; and the related tax impacts of these items 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 acquired software and intangible assets. Our non-GAAP financial measures exclude costs associated with the amortization of acquired software and 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 acquired software and 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.
 
Restructuring charges. Our non-GAAP financial measures exclude restructuring charges, and any subsequent changes in estimates, as they relate to our corporate restructuring activities. 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.
Compuware Corporation Reports First Quarter, Fiscal Year 2014 Results
July 23, 2013
Page 4

Advisory fees associated with certain shareholder actions and business transformation. During the fourth quarter of fiscal 2013, in response to an unsolicited, nonbinding offer to purchase the outstanding shares of the Company from a shareholder, the Company announced its willingness to consider other viable offers. The Company continues to incur unplanned consultant fees to analyze the business, review additional requests for information from other interested parties and to implement business transformation plans. 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.
 
Compuware Corporation
 
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 p.m. Eastern time (21:00 GMT). To join the conference call, interested parties in the United States should call 800-230-1059. For international access, the conference call number is +1-612-234-9959. No password is required. Additionally, investors can listen to the conference call via webcast by visiting the Compuware Corporation Investor Relations web site. A conference call presentation is also available on the site.
 
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 295782.
 
Press Contact
 
Lisa Elkin, Senior Vice President, Marketing, Communications and Investor Relations, +1-313-227-7345
 
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 Reports First Quarter, Fiscal Year 2014 Results
July 23, 2013
Page 5

COMPUWARE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)

 
  
AS OF JUNE 30,
  
ASSETS
  
   
 
 
  
2013
    
2012
  
CURRENT ASSETS:
  
   
 
Cash and cash equivalents
  
$
81,329
    
$
83,507
  
Accounts receivable, net
    
354,404
      
359,610
  
Deferred tax asset, net
    
43,062
      
42,784
  
Income taxes refundable
    
4,674
      
8,470
  
Prepaid expenses and other current assets
    
35,733
      
34,489
  
Total current assets
    
519,202
      
528,860
  
 
                
PROPERTY AND EQUIPMENT, LESS ACCUMULATED
                
DEPRECIATION AND AMORTIZATION
    
297,405
      
316,363
  
 
                
CAPITALIZED SOFTWARE AND OTHER
                
INTANGIBLE ASSETS, NET
    
113,748
      
118,343
  
 
                
ACCOUNTS RECEIVABLE
    
181,343
      
206,004
  
DEFERRED TAX ASSET, NET
    
30,587
      
39,803
  
GOODWILL
    
724,800
      
791,946
  
OTHER ASSETS
    
30,451
      
36,534
  
 
                
TOTAL ASSETS
  
$
1,897,536
    
$
2,037,853
  
 
                
LIABILITIES AND SHAREHOLDERS' EQUITY
                
 
                
CURRENT LIABILITIES:
                
Accounts payable
  
$
12,900
    
$
17,842
  
Accrued expenses
    
92,002
      
82,844
  
Income taxes payable
    
24,729
      
3,168
  
Deferred revenue
    
386,105
      
406,476
  
Total current liabilities
    
515,736
      
510,330
  
 
                
LONG TERM DEBT
    
15,000
      
36,500
  
 
                
DEFERRED REVENUE
    
294,988
      
334,537
  
 
                
ACCRUED EXPENSES
    
17,985
      
26,822
  
 
                
DEFERRED TAX LIABILITY, NET
    
54,588
      
82,904
  
Total liabilities
    
898,297
      
991,093
  
 
                
SHAREHOLDERS' EQUITY:
                
Common stock
    
2,141
      
2,166
  
Additional paid-in capital
    
731,622
      
691,485
  
Retained earnings
    
280,780
      
372,487
  
Accumulated other comprehensive loss
    
(15,304
)
    
(19,378
)
Total shareholders' equity
    
999,239
      
1,046,760
  
 
                
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
1,897,536
    
$
2,037,853
  

Compuware Corporation Reports First Quarter, Fiscal Year 2014 Results
July 23, 2013
Page 6

COMPUWARE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)

 
  
THREE MONTHS ENDED
  
 
  
JUNE 30,
  
 
  
   
 
 
  
2013
    
2012
  
REVENUES:
  
   
 
Software license fees
  
$
35,406
    
$
33,994
  
Maintenance fees
    
98,528
      
102,949
  
Subscription fees
    
20,785
      
20,479
  
Professional services fees
    
48,696
      
48,152
  
Application services fees
    
24,101
      
20,587
  
Total revenues
    
227,516
      
226,161
  
 
                
OPERATING EXPENSES:
                
Cost of software license fees
    
5,406
      
4,825
  
Cost of maintenance fees
    
8,221
      
8,946
  
Cost of subscription fees
    
8,147
      
7,393
  
Cost of professional services
    
40,349
      
42,301
  
Cost of application services
    
24,261
      
17,721
  
Technology development and support
    
26,535
      
26,497
  
Sales and marketing
    
59,493
      
62,190
  
Administrative and general
    
38,228
      
39,725
  
Restructuring costs
    
5,112
      
-
  
Total operating expenses
    
215,752
      
209,598
  
 
                
INCOME FROM OPERATIONS
    
11,764
      
16,563
  
 
                
OTHER INCOME, NET
    
202
      
52
  
 
                
INCOME BEFORE INCOME TAXES
    
11,966
      
16,615
  
 
                
INCOME TAX PROVISION
    
1,999
      
6,147
  
 
                
NET INCOME
  
$
9,967
    
$
10,468
  
 
                
DILUTED EPS COMPUTATION
                
Numerator:  Net income
  
$
9,967
    
$
10,468
  
Denominator:
                
Weighted-average common shares outstanding
    
213,640
      
217,510
  
Dilutive effect of stock awards
    
6,054
      
3,886
  
Total shares
    
219,694
      
221,396
  
Diluted EPS
  
$
0.05
    
$
0.05
  

Compuware Corporation Reports First Quarter, Fiscal Year 2014 Results
July 23, 2013
Page 7

COMPUWARE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)

 
  
THREE MONTHS ENDED
  
 
  
JUNE 30,
  
 
  
2013
    
2012
  
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:
  
   
 
Net income
  
$
9,967
    
$
10,468
  
Adjustments to reconcile net income to cash provided by operations:
                
Depreciation and amortization
    
16,452
      
15,369
  
Stock award compensation
    
10,437
      
8,289
  
Deferred income taxes
    
(14,148
)
    
(884
)
Other
    
13
      
9
  
Net change in assets and liabilities, net of effects from currency fluctuations:
                
Accounts receivable
    
60,935
      
84,862
  
Prepaid expenses and other assets
    
1,871
      
(685
)
Accounts payable and accrued expenses
    
(25,892
)
    
(36,468
)
Deferred revenue
    
(41,987
)
    
(68,088
)
Income taxes
    
11,002
      
5,253
  
Net cash provided by operating activities
    
28,650
      
18,125
  
 
                
CASH FLOWS USED IN INVESTING ACTIVITIES:
                
Purchase of:
                
Property and equipment
    
(1,667
)
    
(2,244
)
Capitalized software
    
(5,745
)
    
(8,846
)
Other
    
(275
)
    
(600
)
Net cash used in investing activities
    
(7,687
)
    
(11,690
)
 
                
CASH FLOWS USED IN FINANCING ACTIVITIES:
                
Proceeds from borrowings
    
26,500
      
41,000
  
Payments on borrowings
    
(29,500
)
    
(49,500
)
Net proceeds from exercise of stock awards including excess tax benefits
    
7,105
      
2,517
  
Employee contribution to common stock purchase plans
    
651
      
818
  
Repurchase of common stock
    
(4,962
)
    
(14,075
)
Dividends
    
(26,741
)
    
-
  
Other
    
(299
)
    
-
  
Net cash used in financing activities
    
(27,246
)
    
(19,240
)
 
                
EFFECT OF EXCHANGE RATE CHANGES ON CASH
    
(2,261
)
    
(2,868
)
 
                
NET CHANGE IN CASH AND CASH EQUIVALENTS
    
(8,544
)
    
(15,673
)
 
                
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
    
89,873
      
99,180
  
 
                
CASH AND CASH EQUIVALENTS AT END OF PERIOD
  
$
81,329
    
$
83,507
  

Compuware Corporation Reports First Quarter, Fiscal Year 2014 Results
July 23, 2013
Page 8

COMPUWARE CORPORATION AND SUBSIDIARIES
OPERATIONAL HIGHLIGHTS
(Dollar Amounts In Thousands)

 
  
QUARTER
    
 
 
  
ENDED
    
 
 
  
JUNE 30,
    
YR - YR
  
 
  
2013
    
2012
    
% Chg
  
Total Product Software Revenue by Geography
  
   
   
 
North America
  
$
86,709
    
$
90,600
      
(4.3
%)
International
    
68,010
      
66,822
      
1.8
%
 
                        
Deferred License Fees
                        
Current
  
$
14,849
    
$
19,584
      
(24.2
%)
Long-term
    
8,926
      
9,094
      
(1.8
%)
 
                        
Deferred Maintenance
                        
Current
  
$
290,453
    
$
303,071
      
(4.2
%)
Long-Term
    
260,188
      
288,035
      
(9.7
%)
 
                        
Deferred Subscription
                        
Current
  
$
43,017
    
$
44,766
      
(3.9
%)
Long-Term
    
6,775
      
11,715
      
(42.2
%)
 
                        
Deferred Professional Services
  
$
21,962
    
$
23,453
      
(6.4
%)
 
                        
Deferred Application Services
  
$
34,923
    
$
41,295
      
(15.4
%)
 
                        
Other:
                        
Total Company Headcount
    
4,363
      
4,560
      
(4.3
%)
 
                        
Total DSO (Billed)
    
59.5
      
61.0
          
Total DSO
    
140.0
      
143.1
          
 
                        
Stock-based compensation expense
                        
 
                        
Cost of maintenance fees
  
$
178
    
$
217
      
(18.0
%)
Cost of subscription fees
    
29
      
35
      
(17.1
%)
Cost of professional services
    
84
      
92
      
(8.7
%)
Cost of application services
    
486
      
322
      
50.9
%
Technology development and support
    
575
      
644
      
(10.7
%)
Sales and marketing
    
2,776
      
1,784
      
55.6
%
Administrative and general
    
4,518
      
5,195
      
(13.0
%)
Restructuring costs
    
1,791
      
-
      
N/
A
 
                        
Total stock-based compensation expense before income taxes
  
$
10,437
    
$
8,289
      
25.9
%

Compuware Corporation Reports First Quarter, Fiscal Year 2014 Results
July 23, 2013
Page 9

COMPUWARE CORPORATION AND SUBSIDIARIES
BUSINESS UNIT RESULTS OF OPERATIONS
(In Thousands)

 
  
   
   
   
   
   
Covisint
    
Unallocated
    
 
 
  
   
   
   
   
Professional
    
Application
    
Expenses
    
 
Quarter Ended:
  
APM
    
Changepoint
    
Mainframe
    
Uniface
    
Services
    
Services
    
& Eliminations
    
Total
  
 
  
   
   
   
   
   
   
   
 
June 30, 2013
  
   
   
   
   
   
   
   
 
 
  
   
   
   
   
   
   
   
 
Software license fees
  
$
22,011
    
$
2,196
    
$
9,732
    
$
1,467
      
-
      
-
      
-
    
$
35,406
  
Maintenance fees
    
23,704
      
4,127
      
63,458
      
7,239
      
-
      
-
      
-
      
98,528
  
Subscription fees
    
20,132
      
653
      
-
      
-
      
-
      
-
      
-
      
20,785
  
Professional services fees
    
7,602
      
3,569
      
69
      
1,124
    
$
36,986
      
-
    
$
(654
)
    
48,696
  
Application services fees
    
-
      
-
      
-
      
-
      
-
    
$
24,101
      
-
      
24,101
  
Total revenues
    
73,449
      
10,545
      
73,259
      
9,830
      
36,986
      
24,101
      
(654
)
    
227,516
  
 
                                                                
Total operating expenses
    
74,046
      
10,314
      
19,176
      
5,170
      
30,632
      
25,423
      
50,991
      
215,752
  
 
                                                                
Income (loss) from operations
  
$
(597
)
  
$
231
    
$
54,083
    
$
4,660
    
$
6,354
    
$
(1,322
)
  
$
(51,645
)
  
$
11,764
  
Contribution margin %
    
(0.8
%)
    
2.2
%
    
73.8
%
    
47.4
%
    
17.2
%
    
(5.5
%)
            
5.2
%
 
                                                                
Operating expenses include:
                                                                
Stock awards compensation
  
$
2,823
    
$
3
    
$
534
    
$
5
    
$
64
    
$
486
    
$
6,522
    
$
10,437
  
Amortization of purchased software
  
$
2,276
    
$
-
    
$
-
    
$
-
    
$
-
    
$
94
    
$
-
    
$
2,370
  
Amortization of other acquired intangible assets
  
$
1,694
    
$
-
    
$
-
    
$
-
    
$
-
    
$
99
    
$
-
    
$
1,793
  
 
                                                                
June 30, 2012
                                                                
 
                                                                
Software license fees
  
$
22,357
    
$
793
    
$
9,050
    
$
1,794
      
-
      
-
      
-
    
$
33,994
  
Maintenance fees
    
20,765
      
4,130
      
70,546
      
7,508
      
-
      
-
      
-
      
102,949
  
Subscription fees
    
19,852
      
627
      
-
      
-
      
-
      
-
      
-
      
20,479
  
Professional services fees
    
8,195
      
3,444
      
293
      
1,176
    
$
35,044
      
-
      
-
      
48,152
  
Application services fees
    
-
      
-
      
-
      
-
      
-
    
$
20,587
      
-
      
20,587
  
Total revenues
    
71,169
      
8,994
      
79,889
      
10,478
      
35,044
      
20,587
      
-
      
226,161
  
 
                                                                
Operating expenses
    
76,096
      
9,689
      
22,845
      
5,419
      
28,920
      
18,016
    
$
48,613
      
209,598
  
 
                                                                
Income (loss) from operations
    
(4,927
)
    
(695
)
    
57,044
      
5,059
      
6,124
      
2,571
      
(48,613
)
    
16,563
  
Contribution margin %
    
(6.9
%)
    
(7.7
%)
    
71.4
%
    
48.3
%
    
17.5
%
    
12.5
%
            
7.3
%
 
                                                                
Operating expenses include:
                                                                
Stock awards compensation
  
$
1,504
    
$
15
    
$
961
    
$
27
    
$
73
    
$
322
    
$
5,387
    
$
8,289
  
Amortization of purchased software
  
$
2,259
    
$
-
    
$
-
    
$
-
    
$
-
    
$
148
    
$
-
    
$
2,407
  
Amortization of other acquired intangible assets
  
$
1,850
    
$
-
    
$
-
    
$
-
    
$
-
    
$
113
    
$
-
    
$
1,963
  

Compuware Corporation Reports First Quarter, Fiscal Year 2014 Results
July 23, 2013
Page 10

COMPUWARE CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP
(In Thousands, Except Per Share Data)

 
  
THREE MONTHS ENDED
  
 
  
JUNE 30,
  
 
  
2013
    
2012
  
 
  
   
 
NET INCOME
  
$
9,967
    
$
10,468
  
 
                
STOCK COMPENSATION (EXCLUDING RESTRUCTURING STOCK COMPENSATION)
    
8,646
      
8,289
  
AMORTIZATION OF PURCHASED SOFTWARE
    
2,370
      
2,407
  
AMORTIZATION OF ACQUIRED INTANGIBLES
    
1,793
      
1,963
  
RESTRUCTURING EXPENSES
    
5,112
      
-
  
ADVISORY FEES
    
1,156
      
-
  
 
                
TOTAL ADJUSTMENTS
    
19,077
      
12,659
  
INCOME TAX EFFECT OF ADJUSTMENTS
    
(6,627
)
    
(4,042
)
 
                
NON-GAAP NET INCOME
  
$
22,417
    
$
19,085
  
 
                
 
                
DILUTED EARNINGS PER SHARE - GAAP
  
$
0.05
    
$
0.05
  
 
                
STOCK COMPENSATION (EXCLUDING RESTRUCTURING STOCK COMPENSATION)
    
0.04
      
0.04
  
AMORTIZATION OF PURCHASED SOFTWARE
    
0.01
      
0.01
  
AMORTIZATION OF ACQUIRED INTANGIBLES
    
0.01
      
0.01
  
RESTRUCTURING EXPENSES
    
0.02
      
-
  
ADVISORY FEES
    
0.01
      
-
  
 
                
TOTAL ADJUSTMENTS
    
0.09
      
0.06
  
INCOME TAX EFFECT OF ADJUSTMENTS
    
(0.03
)
    
(0.02
)
 
                
NON-GAAP DILUTED EPS
  
$
0.10
    
$
0.09
  
 
                
DILUTED SHARES OUTSTANDING
    
219,694
      
221,396
  
 
 

Stock widget

Investing forum

COMPUWARE CORP Reports