Compuware Expects Flat 1Q, Shares Plunge
10.07.2007 21:01
Computers
- Source: Forbes
Compuware Corp., which makes software for mainframe computers, said Tuesday it expects to break even in its fiscal first quarter because evaluation and restructuring work distracted from sales efforts. The company said preliminary results show it reporting revenue of $278 million for the quarter. In the year-ago period, the company earned $29.3 million, or 8 cents per share, on sales of $296.3 million. Analysts polled by Thomson Financial expected the company to report earnings of 10 cents per share on sales of $303 million for the quarter. In a statement, Compuware (nasdaq: CPWR - news - people ) chief executive and chairman Peter Karmanos Jr. said he is "extremely disappointed" in the company's first-quarter results. The company's evaluation and restructuring costs lowered Compuware's net income by 4 cents per share for the quarter, Karmanos said. Hank Jallos, its president and chief operating officer of products, resigned from Compuware, effective immediately, the company also said Tuesday. The company's CEO will oversee the product sales management team in the short term, Compuware said. Compuware shares lost $2.24, or 18.4 percent, to $9.93 in after-hours trading, after finishing regular trading up 5 cents at $12.17. __________ Questions or comments about this story should be directed to the Financial News desk of The Associated Press at 212-621-7190. Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
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