QUOTE AND NEWS
Cloud Computing  Jul 21  Comment 
Compuware Corporation (Nasdaq: CPWR), the technology performance company, today announced that it has appointed Christopher O’Malley President of Mainframe Operations effective July 21, 2014. In this role, O’Malley will...
Benzinga  May 23  Comment 
Compuware (NASDAQ: CPWR) released a corrected earnings report for full-year and fourth quarter fiscal 2014 on Thursday after the market close. The company's shares are trading down nearly four percent on Friday. Bob Paul, Compuware CEO,...
SeekingAlpha  May 23  Comment 
Start Time: 17:37 End Time: 18:20 Compuware Corporation (CPWR) Q4 2014 Earnings Conference Call May 22, 2014 05:30 PM ET Executives Robert C. Paul - CEO, President and Director Joseph R. Angileri - CFO and Treasurer Lisa Elkin...
newratings.com  May 23  Comment 
WASHINGTON (dpa-AFX) - Software company Compuware Corp. (CPWR) reported Thursday a profit for the fourth quarter compared to a loss last year, which was weighed down by hefty goodwill impairment charges. Adjusted earnings per share from continuing...
newratings.com  May 22  Comment 
WASHINGTON (dpa-AFX) - Compuware Corp. (CPWR) Thursday reported fourth-quarter profit of $20.3 million or $0.09 per share, compared to net loss of $63.7 million or $0.30 per share in the same period last year. Adjusted earnings for the quarter...
SeekingAlpha  May 22  Comment 
The following audio is from a conference call that will begin on May 22, 2014 at 17:30 PM ET. The audio will stream live while the call is active, and can be replayed upon its completion. Listen now Complete Story »
Cloud Computing  May 22  Comment 
Conference call time should be 5:30 p.m. Eastern time (instead of 5 p.m. Eastern time). read more
Cloud Computing  Apr 22  Comment 
Research and Markets (http://www.researchandmarkets.com/research/jtl652/global) has announced the addition of the "Global Application Performance Management (APM) Software Market 2014-2018 with CA Technologies, Compuware, HP &...
Benzinga  Apr 16  Comment 
ASML Holding NV (NASDAQ: ASML) fell 5.57% to $80.40 in pre-market trading after the company reported a rise in its first-quarter net profit and lowered its first-half forecast. Credit Suisse Group AG (NYSE: CS) dipped 3.02% to $30.80 in the...
Cloud Computing  Mar 11  Comment 
Compuware Corporation on Tuesday announced that effective February 1, 2014, it has opened a new Center of Excellence for SAP solutions in the Partner Port, located near SAP headquarters, where more than 100 SAP partners and other companies with...




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

Compuware Corporation (NASDAQ:CPWR) sells software to the IT department of large companies. These software products do everything from automatically managing requests for IT resources and services to monitoring the application response times for every user of an application. Compuware charges its customers licensing fees and offers maintenance contracts for technical support of their products. The company also offers a broad range of IT services such as outsourcing, project management, resource planning, and customer relationship management. With over 23,000 customers, Compuware's clients include over 70% of Fortune 500 companies; however, no single customer makes up more than 10% of CPWR's total sales.[1]

The company began offering products and professional services for mainframe computers in the 1970's and expanded its offering to distributed systems, which consist of a network of computers running simultaneously, in the 1990's. However, in 2010 (CPWR's fiscal year ends on March 31 of each year), 48.8% of its revenue still came from the mainframe market, which has been declining since the 1990s.[2] While the increasing complexity of IT departments offers opportunities for Compuware to grow, competition in the distributed systems market is greater than in the mainframe market due to the large number of vendors.[3] Large IT companies such as IBM and HP also offer bundled services such as both hardware and software products that compete directly with Compuware's software offerings.

Company Overview

Business Financials

In 2010, CPWR earned total revenues of $892 million, a decline from its 2009 revenues of $1.1 billion. However, despite the decrease in total revenues, CPWR was able to keep its net income steady. Between 2009 and 2010, CPWR had its net income increase from $140 million in 2009 to $141 million in 2010.

Business Segments

Compuware's revenue comes from license fees, maintenance costs, and professional services:

License Fess

Compuware sells its software through licenses that customers buy to use their products for a period of time. These contracts are often multi-year and are very lucrative. Compuware also offers trial periods to customers after which customers must buy licenses if they wish to continue using the software.

Maintenance Costs

Compuware's customers may decide to buy support services for the products they use. These agreements can be renewed each year for an annual fee based on the license price of the product and gives customers access to technical support and advice as well as any product updates.

Professional Services

Compuware offers professional services in three primary areas: application delivery, service management, and IT portfolio management. Application delivery services allow companies to develop applications to meet business needs, service management services allows companies to measure and manage infrastructure performance from a business perspective, and IT portfolio management allows IT executives to make better investment decisions by measuring the value of IT products.

Trends and Forces

A Payments & Settlement solution that deelivrs a highly flexible and secure PCI compliant payment capability at customer checkout. 이라는 설명이 있는 걸 보니 결제도 가능하다는 얘기 같은데요, 어떻게 결제가 되는지 설명된 자료를 좀 볼 수 있으면 참 좋겠습니다. 기다려봐도 될까요?? ㅋ

Compuware is Dependent on its Mainframe Business, which is Being Replaced by Distributed Computing Technologies

Mainframes are being replaced by distributed computing networks, and Compuware's revenue from its mainframe division has been declining for the last couple of years. Compuware also competes with companies such as CA and BMC, both of which also rely on the mainframe market for over 40% of their revenue.

Compuware Will Face More Competition from Hardware Manufactures Bundling in Their Own Software

Companies such as IBM and HP sell both hardware and IT management software. These companies have been aggressively promoting bundled offerings to their clients while Compuware relies on other companies to provide the hardware to implement its products. IBM, especially, has been using its mainframe installation base to offer clients software and consulting services. Compuware's software also relies on IBM's hardware and software, which puts it in a tough position as some of its products overlap with IBM's own IT management offerings.

Decline in the U.S. Automotive Industry Will Hurt Compuware's Revenue

Approximately 33% of Compuware's worldwide professional services revenue comes from customers in the automotive industry, with a large part of that related to U.S. domestic automotive manufacturers.[4] Many of these companies such as Ford Motor Company (F) and General Motors (GM) are currently engaged in restructuring and cost-cutting efforts, leading to decreasing IT expenditures. Demand for Compuware's services, therefore, has decreased and may decrease further as increasing oil prices continue to hurt demand for automotive purchases.

Competition

Compuware faces competition from large, diversified technology companies such as IBM and HP, other IT management companies such as CA, BMC Software (BMC), Accenture, and niche companies such as EMC and Symantec. The IT services sector is also becoming more consolidated as larger companies acquire smaller ones, which would be favorable for large companies like IBM and HP with large cash reserves.

  • International Business Machines (IBM) - One of the most influential and oldest technology companies, IBM is also one of the largest technology consulting companies in the world. In the last couple of years, it has refocused its business on higher-value, more profitable segments of the industry and and 77% of its sales come from it software and services divisions.[5] IBM also offers a complete set of IT products from servers and storage to application management services that Compuware cannot. IBM, however, is not as specialized as Compuware in helping clients realize the business potential of IT. IBM's Global Business Services, which provides IT management services, made up 18.4% of its revenue while its software division made up 20.4% of its revenue.
  • Hewlett-Packard Company (HPQ) - Like IBM, HP has been expanding their software and services offerings in order to boost profit margins. HP also acquired Mercury Interactive Corporation for $4.5 billion in 2006 to increase their product offerings. Like IBM, HP bundles its software with its enterprise hardware. However, HP still earns the largest portion of its revenue from selling personal computer systems, which account for nearly a quarter of its revenue.
  • CA (CA) - One of the four largest IT management companies, CA competes directly with Compuware in a number of markets. The company provides security, storage, and business service management products to over 99% of Fortune 1000 companies and other governmental, educational, and corporate customers. With over 1,400 software offerings, CA also has business division in both the mainframe and distributed computing sectors. Approximately 47% of CA's revenue comes from their offerings for mainframes while the rest comes from their offerings for distributed computing systems.
  • BMC Software (BMC) - Another enterprise IT management company, BMC heavily promotes its Business Service Management (BSM) strategy, which automates many IT processes to reduce costs. Their software can perform many of the same monitoring and management tasks such as organizing and analyzing databases. However, Compuware has more offerings in the appliance management market that helps companies develop and test new software. BMC also once focused exclusively on the mainframe market before entering the distributed computing market and still depends on the mainframe market for 43% of its revenue. Compuware has a much larger professional services division, however, as 38.9% of its revenue came from that while only 6.30% of BMC's revenue came from its professional services division.

References

  1. CPRW 10-K 2010 Item 1 Pg. 12
  2. Article: The mainframe's virtual renaissance
  3. Compuware Annual Report 2007, Page 16
  4. Compuware Annual Report 2007, Page 21
  5. IBM Annual Report 2007, Page 8
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki