(RTTNews) - Compuware Corp. (CPWR: News ), Thursday reported an increase in profit for its second quarter despite a decline in revenue, on lower expenses as it forfeited non-optimal revenue and unfavorable services contracts.

The Detroit, Michigan-based company's second-quarter net income increased to $28.0 million or $0.12 per share from $21.6 million or $0.08 per share a year ago.

Revenue for the second quarter decreased to $217.9 million from $269.8 million in the second quarter last year.

The company's income from operations increased to $41.43 million from $27.29 million, benefiting from lower expenses. Total operating expenses for the quarter eased to $176.50 million from $242.55 million last year.

Bob Paul, chief executive officer of the company, said, "Compared to the year-ago quarter, Compuware has divested peripheral product lines and exited unfavorable services contracts, foregoing 60 million dollars in non-optimal revenue. Reducing such revenues has almost doubled the company's operating margin from 10 to 19 percent."
Segment wise, software license fees declined to $50.1 million from $42.3 million while maintenance fees decreased to $109.7 million from $124.7 million last year. Revenue from professional services dropped to $58.1 million from $102.9 million in the same quarter last year.

For the six-month period, net income increased to $79.03 million or $0.33 per share from $56.31 million or $0.22 per share in the year-earlier period. Revenue for the period declined to $432.32 million from $568.43 million for the same period last year.

CPWR closed Thursday's regular trading at $7.10, up $0.09 or 1.28%, on a volume of 2.22 million shares on the Nasdaq. In after hours, the stock is gaining $0.40 or 5.63%.

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by RTT Staff Writer

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