Compuware shares gain after 2Q profit climbs

DETROIT (AP) — Compuware Corp. shares jumped Friday after the software maker said its second-quarter earnings climbed, helped by the departure of some noncore product lines and unfavorable service contracts.

Shares of Compuware rose 85 cents, or 12 percent, to finish trading at $7.95.

Late Thursday, Compuware said it earned $28 million, or 12 cents per share, up 30 percent from $21.6 million, or 8 cents per share, in the year-ago quarter.

Revenue fell 19 percent to $217.9 million from $269.8 million.

Compuware said maintenance fees fell to $109.7 million from $124.7 million in the same quarter last year, while software license fees rose to $50.1 million from $42.3 million. Professional service fees sank to $58.1 million from $102.9 million.

Compuware nearly doubled its operating margin to 19 percent from 10 percent by divesting itself of the peripheral product lines and exiting the unfavorable services contracts, CEO Bob Paul said in a statement.

Compuware's operating expenses shrank 27 percent to $176.5 million, due mostly to a big drop in professional services costs and lower administrative and general costs.