CNET también está disponible en español.

Ir a español

Don't show this again

Tech Industry

Compuware crumbles on downgrades, warning

    Shares of Compuware Corp. (Nasdaq: CPWR) tumbled Wednesday, after the software maker warned its fourth quarter earnings would be weaker than Wall Street forecasts.

    Analysts promptly downgraded the stock.

    Compuware shares fell 7 9/16 to 12 1/2, or 38 percent, as more than 15 million shares traded hands. The stock crumbled in March too, when it got a downgrade from Donaldson, Lufkin & Jenrette.

    J.P. Morgan and Chase Hambrecht & Quist downgraded the stock to "market perform" from "buy," the two investment firms said in separate statements on Wednesday.

    Compuware said as a result of weaker revenue from its professional services and products divisions, it expected to report earnings of 13 to 15 cents a share for the quarter ended March 31, far below the 35 cents a share predicted by First Call and the 31 cents a share in the year earlier period.

    Compuware estimated fourth quarter revenue was about $566 million to $581 million.

    J.P. Morgan said the revenue forecast is 20 percent below its forecasts for $705 million. In a report, the investment firm said "top line weakness was across the board, but especially heavy in software.''

    Revenue from professional services was estimated to be in a range of $260 million to $265 million. Software license fee revenues were projected to be $193 million to $198 million. Maintenance revenues were estimated to be $113 million to $118 million.

    Compuware competes with Computer Associates (NYSE: CA), Oracle (Nasdaq: ORCL) and BMC Software (Nasdaq: BMCS).

    Compuware crumbles on downgrade
    CPWR estimates
    HEADLINE scan
    Earnings calendar
    Market Summary