Compuware Corp. (CPWR), 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%.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.