Compuware Corp. (NASDAQ: CPWR) said Wednesday that its net income leapt to $34.7 million in the first fiscal quarter ended June 30 from just $189,000 a year ago. Revenue rose 6.9 percent to $298.6 million from $279.4 million a year earlier.
Earnings per share was 13 cents in the most recent quarter, up from zero a year earlier.
During the first quarter, new software license fees -- an important indicator of future growth -- improved to $61.5 million from $47.3 million in the same quarter last year. Maintenance fees were $126.5 million, up from $113.7 million in the first quarter last year. Revenue from professional services was $110.6 million, down from $118.4 million in the same quarter last year.
The profit spread on professional services narrowed in the quarter, with the cost of those services falling only from $104.1 million last year to $103.8 million a year earlier despite the sharper decline in revenue. Sales and marketing expenses were cut from $64.7 million last year to $61.3 million this year, while administrative and general spending also fell, from $45.4 million to $41.1 million.
Reflecting the company's continued stock buybacks, the average number of common shares outstanding fell to 259.7 million in the quarter from 302 million a year earlier.
The company remained a cash flow machine, generating $47.8 million in cash from operating activities in the quarter, up frmo $37.8 million a year earlier. However, the company spent $58.9 million in the buying back its stock. Still, the company retains a substantial cash hoard -- $216.5 million at the end of the quarter.
By product line, sales of distributed software fees rose 9.4 percent and mainframe products jumped 53.3 percent. Individual product winners were Vantage, up 30.2 percent, and Changepoint, up 31.4 percent. DevPartner sales fell 22.3 percent and Uniface 21.7 percent.
The company's total employment fell 14 percent of the past year, reflecting last year's restructuring, to 6,099, from 7,091 a year earlier.
Compuware officials said co-founder and CEO Peter Karmanos Jr. was "recovering well from a recent surgery" and could not join in a conference call with reporters and market analysts.
Compuware president and COO Bob Paul said the company "delivered a strong Q1," combining "disciplined expense management and strong sales and marketing efforts." He said the quarter produced "meaningful revenue improvement at the core of Compuware -- Vantage, Changepoint and mainframe," and that the strongly growing products "help business and IT leaders solve their most pressing business problems."
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