While competitors such as BMC Software Corp are engaged in a frantic takeover spree, Compuware Corp, has been content to concentrate on organic growth – and no wonder. Shares of the Farmington Hills, Michigan, applications management and development tools company, ended last week 12.6% higher at $26.6 after the company turned in fourth quarter earnings per share of $0.31, comfortably beating the forecast of analysts surveyed by First Call of $0.29.
Exceptional growth has become the norm for Compuware and net income rose 61.9% in the fourth quarter to $123.9m on revenues 61.9% higher at $500.1m. For the year, net income shot up 80.3% to $349.8m on revenue that increased by 43.8% to $1.64bn.
Compuware now claims to be the world’s fifth largest ISV and software license fees increased 46.2% to $683.4m last year and professional service fees kept pace with a 45.1% rise to $620.7m. Maintenance revenue lagged slightly behind with a 36.9% increase to $334.4m.
In the current year, the boost from Y2K work will fade away but the big driver for growth will be in e-commerce applications, where revenues in the $400m-$500m range are expected, compared with around $210m last year. While Compuware has always concentrated on the world’s major corporations, the company has high hopes of its Uniface web application server, the kind of product that will appeal to the SME market.
