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Compuware to Reorganize Professional Services Operations
Takes Restructuring Charge Against Fourth Quarter FY02 Earnings
FARMINGTON HILLS, Mich. -- April 1, 2002 -- Compuware Corporation (Nasdaq: CPWR) today announced that it will begin immediately to implement a restructuring plan to improve profitability and position the company for future growth. The restructuring plan will reorganize Compuware's North American and European professional services operations, and result in a restructuring charge the company will take against fourth quarter FY02 earnings. "We have carefully evaluated our business and determined that we must make significant changes in order to improve profitability and better position the company for long-term success," said Compuware Chairman and CEO Peter Karmanos, Jr. "While these decisions have been difficult, Compuware is obligated to take action that helps ensure the future growth and profitability of the organization, for the sake of employees as well as shareholders." Staff reductions associated with the restructuring will primarily impact professional services employees and those employees in positions that support them, as well as sales support personnel. The plan ranges from the reduction of professional services staff at some locations to the closing of entire professional services offices. Compuware will provide severance packages, including job search assistance, to affected employees. The number of offices that will be reduced or closed, their location, and the exact number of employees affected by the reorganization will not be announced until all employees impacted by the reorganization are notified. The restructuring will begin immediately and should be substantially completed by the end of April in North America; timing in Compuware's European locations will be based on the applicable laws of each country. "As part of our review of Compuware's financial performance, we identified a number of professional services locations where we have not been able to build critical mass or achieve a level of profitability," Karmanos said. "We do not expect these circumstances to change in the foreseeable future. The restructuring effort is focused on addressing this situation. We are currently formulating plans to provide support packages to affected employees and to ensure seamless support for our customers. We intend to honor all existing contracts where our professional services employees are currently on assignment," he said, concluding, "In locations where we are closing offices, we will provide incentives for employees to stay on their assignments until they finalize Compuware's commitment to our customers." A member of Compuware's local account management team will contact each customer affected by the reorganization. Compuware has also established a transition office to manage reorganization activities. In addition, information for customers is available on the company's web site at http://www.compuware.com/. Compuware Corporation will report its fourth quarter fiscal results after market close on May 7, 2002. Compuware will hold a conference call at 5:00 p.m. Eastern Daylight Time (2100 GMT/UTC) to announce final financial results for the fourth quarter and Fiscal Year 2002 and provide an outlook for business going forward. Compuware CorporationCompuware Corporation, a multi-billion dollar company, 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 more than 12,000 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/.
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