Compuware Corporation Announces Fourth Quarter and Fiscal Year 2001 Financial Results

Compuware Meets Consensus EPS Estimates for Year and Quarter

FARMINGTON HILLS, Mich. -- May 2, 2001 -- Compuware Corporation (Nasdaq: CPWR) today announced financial results for its fourth quarter and fiscal year ended March 31, 2001.

Compuware reports fourth quarter revenues of $514.5 million, compared to $582.1 million in the fourth quarter of the previous year. Net income before amortization expense in the quarter increased to $59.1 million from $57.5 million in the same quarter of the previous year. Earnings per share before amortization expense (diluted computation) increased 6.7 percent to 16 cents from 15 cents, based upon 376.3 million and 381.0 million shares outstanding, respectively. Including amortization expense, earnings per share (diluted computation) were 12 cents per share, matching the 12 cents earned in the fourth quarter of fiscal 2000.

During the company’s fourth quarter, software license fees were $138.2 million, compared to $196.1 million in the same period of the previous fiscal year. Maintenance fees were $110.9 million versus $118.2 million during the same period last year. Revenue from professional services was $265.4 million, compared with $267.7 million in the fourth quarter of fiscal 2000.

During the fiscal year ended March 31, 2001, revenues were $2.010 billion compared with $2.231 billion in fiscal 2000. Before special charges and amortization expense during fiscal year 2001, net income was $163.8 million compared with $392.2 million in the previous fiscal year. Including special charges and amortization expense, net income was $119.1 million from $352.0 million in the previous fiscal year. Earnings per share before special charges and amortization expense (diluted computation) were 44 cents compared with $1.02 in the prior fiscal year, based upon 372.8 and 384.7 million shares outstanding, respectively. Earnings per share including special charges and amortization expense (diluted computation) were 32 cents versus 91 cents.

During the year, software license fees were $495.6 million, compared with $819.2 million in fiscal 2000. Maintenance revenue grew 5.5 percent to $456.5 million from $432.7 million. Professional services fees for the fiscal year increased 8.1 percent to $1.058 billion from $978.7 million.

"We are pleased to have met consensus EPS estimates for the quarter and the year in what has been one of the most challenging periods for our industry and our business," said Peter Karmanos, Jr., Compuware Chairman and CEO. "I am confident that Compuware has emerged stronger for having persevered and remained profitable through a difficult time in the technology sector. Our company is more focused, more competitive and more responsive than ever before." Karmanos continued: "I am energized and optimistic about fiscal year 2002. We are poised to achieve our goals, because our organization rests on a base of strong fundamentals and talented individuals. We are committed to delivering long-term value to our shareholders, our customers and our employees. And we believe our strategy for the upcoming year will help us honor that commitment."

Compuware Corporation

With fiscal 2001 revenues of more than $2 billion, Compuware Corporation provides business value through software and professional services that optimize productivity and reduce costs across the application life cycle. Meeting the rapidly changing needs of businesses of all sizes, Compuware’s market-leading solutions improve the quality, ease the integration and enhance the performance of distributed, e-business and enterprise software. Compuware employs approximately 15,000 information technology professionals worldwide. For more information about Compuware, please contact the corporate offices at 800-521-9353. You may also visit Compuware on the World Wide Web at http://www.compuware.com.