Compuware closes year of growth on high note; officially launches Compuware 2.0

Q4 results feature 38 per cent year-over-year increase in software license fees, seven per cent year-over-year increase in maintenance

Compuware Corporation (NASDAQ: CPWR) announced final financial results for its fourth quarter and fiscal year ended March 31, 2008.

''With an excellent performance in Q4, Compuware closed a solid year of growth on a very high note,'' said Compuware Chairman and CEO Peter Karmanos, Jr. ''For more than 35 years, Compuware has helped its customers economically benefit their businesses through powerful products and talented technical people. In the coming year, we will capitalise further on our heritage by becoming an even more focused, customer-responsive and dynamic company. I expect the results to be strong.''

Fiscal Year 2008 Results

During the fiscal year ended March 31, 2008, revenues were US$1.23 billion, up from US$1.21 billion in the previous fiscal year. Net income—before restructuring charges and capitalised software impairment—was US$164.6 million compared to US$158.1 million in fiscal 2007. Earnings per share—diluted computation before restructuring charges and capitalised software impairment—were 57 cents, an increase of 27 per cent from 45 cents in fiscal 2007, based upon 287.6 million and 351.0 million shares outstanding, respectively. On a GAAP basis, net income was US$134.4 million and earnings per share were 47 cents in fiscal 2008.

During fiscal 2008, software license fees were US$297.5 million, up from US$283.4 million in fiscal 2007. Maintenance revenue was US$476.4 million in fiscal 2008, compared toUS $457.6 million in fiscal 2007. Professional services fees for fiscal 2008 were US$455.7 million, compared to US$472.0 million in fiscal 2007.

Fourth Quarter Fiscal 2008 Results

Compuware reports fourth quarter net income—before restructuring charges—of US$63.1 million on revenues of US$338.9 million. On a GAAP basis, net income was US$61.2 million in Q4. Earnings per share—diluted computation—were 23 cents, based upon 268.7 million shares outstanding.

During the company's fourth quarter, software license fees were US$100.8 million, an increase of 38 per cent from US$73.2 million in the same quarter last year. Maintenance fees were US$126.3 million during the quarter, an increase of more than seven per cent from US$117.7 million in the same quarter last year. Fourth quarter revenue from professional services was US$111.8 million, compared to US$122.1 million in the same quarter last year.

Compuware 2.0 Launch

The company also formally launched Compuware 2.0, along with the official introduction of its new global theme ''We make IT rock around the world'' and a new microsite, www.wemakeitrockaroundtheworld.com.

''Compuware 2.0 is not a campaign, a one-time initiative or a message. Compuware 2.0 is a rebirth based on the company's longtime principles and anchored by definable, actionable and measurable objectives,'' explained Compuware President and Chief Operating Officer Bob Paul. ''While there is a marketing component to Compuware 2.0, the core of this effort is in approaching the market in a fresh way and delivering quantifiable economic value to our customers.''

Among the specific objectives for Compuware 2.0 are:

Instituting and communicating a strategic vision for the company that positions it as a best-in-class provider of solutions that customers—in the markets where Compuware chooses to compete—have a compelling reason to buy.
Going to market with complete solutions to compelling business problems by combining software, best practices and professional services.
Establishing and extending a lively, engaging corporate brand identity that customers and employees identify with, understand and trust.
Deploying a global recruiting, training and career development function to attract and retain the highest quality professionals.

For full details, visit www.wemakeitrockaroundtheworld.com.

Fourth Quarter Fiscal Year 2008 Highlights

During the fourth quarter, Compuware:

Announced that the company promoted Robert C. Paul to the position of President and Chief Operating Officer, leading the company's products and services operations, Compuware 2.0 effort and other key functions.
Acquired privately held Hilgraeve, Inc. This acquisition made Compuware Covisint the world's largest on-demand collaboration platform for lab and prescription data sharing.
Launched a new initiative to provide hospitals and physicians with the means to more effectively navigate the dynamically changing healthcare technology environment. Compuware's IT Service Management for Healthcare initiative drives improved patient care, reduces costs for hospitals and provides significant ROI.
Announced that Compuware Covisint entered into an agreement to work with Microsoft HealthVault, Microsoft's personal health technology platform. Covisint will provide physicians with better, more efficient and secure access to patients' records by enabling patients to grant provider access to their HealthVault records through Covisint's OnDemand platform.
Announced that it received Corp! Magazine's award for ''Diversity-focused Company.'' The award is based on the company's commitment to diversity—in race, ethnicity and more—as a business driver.
Announced the sponsorship of a webcast titled: ''Improving Quality in Your Application Delivery Process—A Success Story at Arizona Federal.'' In the webcast, Kevin Bingham, Assistant Vice President, Information Technology at Arizona Federal presented how his organisation leveraged test automation and a structured process to deliver applications without sacrificing budget, time or quality by using Compuware TestPartner.

Compuware Corporation

Compuware Corporation (NASDAQ: CPWR) maximises the value IT brings to the business by helping CIOs more effectively manage the business of IT. Compuware solutions accelerate the development, improve the quality and enhance the performance of critical business systems while enabling CIOs to align and govern the entire IT portfolio, increasing efficiency, cost control and employee productivity throughout the IT organisation. Founded in 1973, Compuware serves the world's leading IT organisations, including more than 90 percent of the Fortune 100 companies. Learn more about Compuware at http://www.compuware.com/.

Use of Non-GAAP Financial Information

In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, this press release uses a non-GAAP measure of net income and earnings per share. The net income and earnings per share disclosures on a non-GAAP basis excluded the impact of restructuring charges and capitalised software impairment. See the attached ''Reconciliation of non-GAAP Information'' schedule for complete details. Compuware management believes the non-GAAP financial information provided in this release helps investors better understand and assess Compuware's ongoing core operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in operating and evaluating its business and as such has determined that it is important to provide this information to investors.