Compuware Corporation (CPWR) reported revenues of $247.0 million in the third quarter of fiscal 2011, up 7.5% year over year and up 9.3% sequentially. Revenue was within management’s guidance range of $240-$260 million and lagged behind the Zacks Consensus Estimate of $250 million.

Michigan-based Compuware Corporation provides software products and professional services to many of the largest users of information systems across the world.

On a segment basis, revenues from software license fees increased 15.6% year over year to $60.2 million. Revenues from maintenance and subscription fees came in at $124.2 million, up 5.6% from the year-earlier quarter. Revenues from professional services inched up 4.1% year over year to $62.7 million.

Covisint (Compuware markets its application services under the brand name Covisint) revenues increased 32.8% year over year to $14.4 million, attributable to strong growth in healthcare vertical which grew by 42%.

Management expects that the rapid growth of its application performance management (APM) and secure collaboration businesses will diversify the company’s revenue mix by adding recurrent revenue and additional visibility. This revenue shift to more distributed and subscription base revenue bodes well for the company.

Total APM revenues (consisting of Vantage and Gomez solutions) grew 34% year over year to $56.1 million. Vantage license fees were up 3.4% and Gomez subscription fees were up 25.6%.

Operating expenses came in at $197.5 million, up 2.0% year over year and within management’s forecast of $195 million and $200 million. Net income increased 39.3% year over year to approximately $34.0 million.

EPS was 15 cents in the quarter, up 36.4% year over year, primarily due to higher net earnings and lower number of shares outstanding. During the quarter, Compuware repurchased approximately 5.4 million shares for about $57.6 million. The reported figure was in line with the Zacks Consensus Estimate of 15 cents and at the mid-point of management’s guidance range of 14-16 cents.

Management did not provide any update of its fiscal year 2011 guidance. According to the second quarter call, fiscal year 2011 it is anticipated that revenue would  be roughly $950 million and EPS within 48 cents and 56 cents range. Cash flow from operations is expected to range within $175-$200 billion.

Shares of Compuware were down 1.2% and closed at $11.57 after-hours trading.

 
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