Business software maker Compuware Corp. (CPWR), Tuesday reported a swing to loss in the fourth-quarter from a profit last year, hurt mainly by lower revenues and impairment and restructuring costs. Nevertheless, adjusted earnings and revenues for the quarter came in line with Wall Street estimates.
Detroit, Michigan-based Compuware's fourth-quarter loss was $63.7 million or $0.30 per share, compared to a profit of $27.1 million or $0.12 per share last year.
The company's bottom line was hurt mainly by restructuring charges, advisory fees and goodwill impairment associated with its margin-expansion initiatives. For the quarter, goodwill impairment charges were $71.8 million and restructuring costs were $16.6 million.
Fourth-quarter adjusted earnings, which excludes special items, dropped to $0.05 per share from $0.12 per share last year. On average, five analysts polled by Thomson Reuters expected earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.
Compuware's revenues for the period dropped 9.8 percent to $239.9 million from $266.0 million last year. Four analysts had a consensus revenue estimate of $239.68 million for the quarter.
Commenting on the results, Chief Executive Bob Paul said, "While our fourth quarter results were a disappointment, as a large number of deals we had anticipated closing were pushed into the new fiscal year, we made great strides executing on our strategic initiatives to transform the company while positioning Compuware for improved profitability in 2014 and 2015."
Last month, Compuware had warned its fourth-quarter results would come in way below analysts' consensus, due to delays in closing a large number of deals.
Looking forward to the full year 2014, Compuware expect earnings of $0.35 to $0.37 per share and revenues of about $1.0 billion. Analysts currently expect earnings of $0.42 per share and revenues of $1.01 billion for 2014.
CPWR closed Tuesday's trading at $11.32, up $0.04 or 0.35%, on a volume of 1.9 million shares, on the Nasdaq.
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