EXHIBIT 99.1
| NEWS RELEASE | |
| COMPUWARE CORPORATION | |
Corporate Headquarters One Campus Martius · Detroit, Michigan 48226 (313) 227-7300 For Immediate Release January 22, 2013 |  |
Compuware Announces Fiscal Year 2013 Q3 Results
| · | Earns twelve cents per share on $257.9M in total revenues |
| · | APM total revenues increase 18 percent y-o-y to $85.1M |
| · | Covisint revenues increase 28 percent y-o-y to $23.9M |
DETROIT--January 22, 2013 (BUSINESSWIRE)--Compuware Corporation (Nasdaq: CPWR), the technology performance company, today announced financial results for its third quarter ended December 31, 2012 that reflect improving margins and strong revenue momentum from its growth businesses, particularly its APM unit.
During the third quarter, total revenues were $257.9 million, compared to $253.1 million in the third quarter last year. Net income was $25.3 million, compared to $21.6 million in the third quarter last year. Earnings per share were twelve cents compared to ten cents last year, based upon 217 million and 222 million shares outstanding, respectively.
“Our results reflect the progress we are making in our business transformation, as our two growth businesses experienced year-over-year revenue growth and margin improvement,” said Compuware CEO Bob Paul. “We have stabilized the Mainframe business and continue to generate significant revenue and cash flow to fund investments and innovation in our growth businesses. Mainframe revenue grew 17 percent quarter-over-quarter, and we expect our new Compuware APM for Mainframe offering to meaningfully contribute to our Mainframe earnings going forward. At the same time, we continued to extend our competitive advantages beyond Mainframe into higher-growth, market-leading capabilities. Today, more than 40% of our revenues come from these higher-growth businesses, which is a dramatic improvement over prior years. Our APM business delivered 27 percent growth over last quarter, driven by the strength of the enterprise licensing business, which was up 89 percent from the second quarter.
“We are moving quickly to anticipate industry trends and drive the business forward with differentiated value solutions that optimize the user experience,” Paul added. “We remain focused on optimizing each of our business units through prudent capital allocation and improved efficiencies and are also pursuing specific shareholder value creation strategies such as the IPO of Covisint, for which we filed a registration statement with the SEC during the quarter. While we have additional work ahead of us, we are confident that our strategic approach to business transformation and shareholder value is delivering results.”
Mr. Paul noted that Compuware’s Board of Directors is in the process of carefully reviewing the proposal by Elliott Management Corporation. The Board will be meeting later this week to conclude its review and plans to respond very shortly to the proposal.
Compuware noted that during the company's third quarter:
| · | software license fees were $64.8 million |
| · | maintenance fees were $102.3 million |
| · | subscription fees were $20.8 million |
Page 2
Compuware Announces Fiscal Year 2013 Q3 Results
January 22, 2013
| · | professional services fees were $46.0 million |
| · | application services fees were $23.9 million |
Third Quarter Fiscal Year 2013 Highlights
During the third quarter, Compuware:
| · | Introduced Compuware APM for Mainframe, which is marketed as PurePath for zOS, the industry’s first and only solution for deep transaction management from the edge through the Mainframe. PurePath gives Compuware a formidable differentiator to successfully compete and grow market share, and is showing strong potential with several early deals already completed. The company also announced major enhancements to Compuware Strobe. |
| · | Submitted a registration statement on a confidential basis for Covisint Corporation, to the U.S. Securities and Exchange Commission for a possible initial public offering of its Class A common stock. |
| · | Announced that it has been positioned by Gartner, Inc. in the “Magic Quadrant for Integrated IT Portfolio Analysis (IIPA) Applications,” based on analyst evaluation of the Company’s market-leading project and portfolio management solution Changepoint. |
| · | Announced that John Van Siclen, General Manager of Compuware's application performance management business, was named a Top 25 Disrupter of 2012 by CRN. |
| · | Was recognized by the Michigan Business & Professional Association for the 12th consecutive year as a "101 Best and Brightest Companies to Work For" in the Detroit region. |
| · | Developed a new generation performance analytics solution that raises the intelligence of software-as-a-service application performance management. Outage Analyzer provides real-time visualizations and alerts of outages in third-party web services that are mission critical to web, mobile and cloud applications around the world. |
| · | Detailed its strategy for helping customers to modernize enterprise applications and to leverage new technologies including cloud computing. |
| · | Released Uniface 9.6, a significant milestone in its vision of helping organizations modernize applications and enabling the development of applications of engagement. |
| · | Announced that it is providing “day one” support for IBM’s CICS Transaction Server for z/OS V5.1, a crucial component of modern, multi-tiered and customer-facing applications. |
| · | Announced that it has partnered with REAL TECH AG, a provider of software solutions for enterprise-wide IT management and SAP consultancy, to incorporate Compuware APM – dynaTrace Data Center Real User Monitoring into the latest release of its IT service management software. |
Page 3
Compuware Announces Fiscal Year 2013 Q3 Results
January 22, 2013
Compuware Corporation
Compuware Corporation, the technology performance company, provides software, experts and best practices to ensure technology works well and delivers value. Compuware solutions make the world's most important technologies perform at their best for leading organizations worldwide, including 46 of the top 50 Fortune 500 companies and 12 of the top 20 most visited U.S. web sites. Learn more at: http://www.compuware.com.
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The Compuware logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5950
Conference Call Information
Compuware will host a conference call to discuss these results at 5:00 p.m. Eastern time (21:00 GMT) today. To join the conference call, interested parties in the United States should call 800-700-7860. For international access, the conference call number is +1-612-332-0226. No password is required.
A conference call replay will also be available. The United States replay number will be 800-475-6701, and the international replay number will be +1-320-365-3844. The replay passcode will be 274653. Additionally, investors can listen to the conference call via webcast by visiting the Compuware Corporation Investor Relations web site at http://www.compuware.com.
Press Contact
Lisa Elkin, Senior Vice President, Investor Relations, Marketing and Communications +1-313-227-7345
Certain statements in this release that are not historical facts, including those regarding the Company's future plans, objectives and expected performance, are "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. While we believe any forward-looking statements we have made are reasonable, actual results could differ materially since the statements are based on our current expectations and are subject to risks and uncertainties. These risks and uncertainties are discussed in the Company's reports filed with the Securities and Exchange Commission. Readers are cautioned to consider these factors when relying on such forward-looking information. The Company does not undertake, and expressly disclaims any obligation, to update or alter its forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
COMPUWARE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
| AS OF DECEMBER 31, | ||||||||
| ASSETS | ||||||||
| 2012 | 2011 | |||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 64,884 | $ | 82,201 | ||||
| Accounts receivable, net | 449,964 | 470,724 | ||||||
| Deferred tax asset, net | 38,669 | 47,460 | ||||||
| Income taxes refundable | 3,693 | 4,634 | ||||||
| Prepaid expenses and other current assets | 32,377 | 32,283 | ||||||
| Total current assets | 589,587 | 637,302 | ||||||
| PROPERTY AND EQUIPMENT, LESS ACCUMULATED DEPRECIATION AND AMORTIZATION | 314,404 | 326,099 | ||||||
| CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS, NET | 119,041 | 117,175 | ||||||
| ACCOUNTS RECEIVABLE | 190,613 | 216,735 | ||||||
| DEFERRED TAX ASSET, NET | 36,254 | 40,789 | ||||||
| GOODWILL | 799,823 | 797,163 | ||||||
| OTHER ASSETS | 35,202 | 35,547 | ||||||
| TOTAL ASSETS | $ | 2,084,924 | $ | 2,170,810 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 13,509 | $ | 16,805 | ||||
| Current portion of long term debt | - | 110,000 | ||||||
| Accrued expenses | 98,171 | 107,512 | ||||||
| Income taxes payable | 14,883 | 19,073 | ||||||
| Deferred revenue | 413,446 | 435,219 | ||||||
| Total current liabilities | 540,009 | 688,609 | ||||||
| LONG TERM DEBT | 70,000 | - | ||||||
| DEFERRED REVENUE | 311,036 | 356,693 | ||||||
| ACCRUED EXPENSES | 29,139 | 27,908 | ||||||
| DEFERRED TAX LIABILITY, NET | 84,648 | 77,100 | ||||||
| Total liabilities | 1,034,832 | 1,150,310 | ||||||
| SHAREHOLDERS' EQUITY: | ||||||||
| Common stock | 2,121 | 2,188 | ||||||
| Additional paid-in capital | 692,133 | 681,359 | ||||||
| Retained earnings | 368,445 | 355,650 | ||||||
| Accumulated other comprehensive loss | (12,607 | ) | (18,697 | ) | ||||
| Total shareholders' equity | 1,050,092 | 1,020,500 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,084,924 | $ | 2,170,810 | ||||
COMPUWARE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
| THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||
| DECEMBER 31, | DECEMBER 31, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| REVENUES: | ||||||||||||||||
| Software license fees | $ | 64,831 | $ | 57,121 | $ | 130,499 | $ | 152,958 | ||||||||
| Maintenance fees | 102,341 | 106,843 | 307,487 | 322,908 | ||||||||||||
| Subscription fees | 20,793 | 19,931 | 61,503 | 58,156 | ||||||||||||
| Professional services fees | 46,049 | 50,575 | 140,155 | 157,403 | ||||||||||||
| Application services fees | 23,852 | 18,587 | 64,981 | 52,302 | ||||||||||||
| Total revenues | 257,866 | 253,057 | 704,625 | 743,727 | ||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| Cost of software license fees | 5,388 | 4,844 | 15,117 | 13,150 | ||||||||||||
| Cost of maintenance fees | 8,639 | 9,603 | 26,653 | 28,907 | ||||||||||||
| Cost of subscription fees | 7,603 | 7,291 | 22,823 | 22,192 | ||||||||||||
| Cost of professional services | 39,694 | 45,277 | 122,080 | 136,496 | ||||||||||||
| Cost of application services | 20,758 | 17,265 | 57,468 | 53,934 | ||||||||||||
| Technology development and support | 25,629 | 27,265 | 79,675 | 78,706 | ||||||||||||
| Sales and marketing | 65,773 | 69,683 | 184,604 | 197,255 | ||||||||||||
| Administrative and general | 44,733 | 39,236 | 122,819 | 122,717 | ||||||||||||
| Total operating expenses | 218,217 | 220,464 | 631,239 | 653,357 | ||||||||||||
| INCOME FROM OPERATIONS | 39,649 | 32,593 | 73,386 | 90,370 | ||||||||||||
| OTHER INCOME (EXPENSE), NET | (55 | ) | 231 | (90 | ) | 1,221 | ||||||||||
| INCOME BEFORE INCOME TAXES | 39,594 | 32,824 | 73,296 | 91,591 | ||||||||||||
| INCOME TAX PROVISION | 14,254 | 11,236 | 26,894 | 30,339 | ||||||||||||
| NET INCOME | $ | 25,340 | $ | 21,588 | $ | 46,402 | $ | 61,252 | ||||||||
| DILUTED EPS COMPUTATION | ||||||||||||||||
| Numerator: Net income | $ | 25,340 | $ | 21,588 | $ | 46,402 | $ | 61,252 | ||||||||
| Denominator: | ||||||||||||||||
| Weighted-average common shares outstanding | 212,836 | 218,534 | 215,318 | 218,427 | ||||||||||||
| Dilutive effect of stock options | 4,036 | 3,349 | 4,153 | 4,134 | ||||||||||||
| Total shares | 216,872 | 221,883 | 219,471 | 222,561 | ||||||||||||
| Diluted EPS | $ | 0.12 | $ | 0.10 | $ | 0.21 | $ | 0.28 | ||||||||
COMPUWARE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
| NINE MONTHS ENDED | ||||||||
| DECEMBER 31, | ||||||||
| 2012 | 2011 | |||||||
| CASH FLOWS PROVIDED BY OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 46,402 | $ | 61,252 | ||||
| Adjustments to reconcile net income to cash provided by operations: | ||||||||
| Depreciation and amortization | 49,358 | 44,706 | ||||||
| Stock award compensation | 20,663 | 17,555 | ||||||
| Deferred income taxes | 6,172 | 7,460 | ||||||
| Other | 552 | 221 | ||||||
| Net change in assets and liabilities, net of effects from currency fluctuations and acquisitions: | ||||||||
| Accounts receivable | 17,140 | (14,201 | ) | |||||
| Prepaid expenses and other current assets | (2,024 | ) | 1,940 | |||||
| Other assets | 6,632 | (3,451 | ) | |||||
| Accounts payable and accrued expenses | (24,868 | ) | 783 | |||||
| Deferred revenue | (91,181 | ) | (53,184 | ) | ||||
| Income taxes | 20,122 | 10,604 | ||||||
| Net cash provided by operating activities | 48,968 | 73,685 | ||||||
| CASH FLOWS USED IN INVESTING ACTIVITIES: | ||||||||
| Purchase of: | ||||||||
| Business, net of cash acquired | - | (249,337 | ) | |||||
| Property and equipment | (18,241 | ) | (15,879 | ) | ||||
| Capitalized software | (24,817 | ) | (18,346 | ) | ||||
| Other | (1,400 | ) | (575 | ) | ||||
| Net cash used in investing activities | (44,458 | ) | (284,137 | ) | ||||
| CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||||||
| Proceeds from borrowings | 142,800 | 180,200 | ||||||
| Payments on borrowings | (117,800 | ) | (70,200 | ) | ||||
| Net proceeds from exercise of stock awards including excess tax benefits | 11,965 | 8,503 | ||||||
| Employee contribution to common stock purchase plans | 2,046 | 2,101 | ||||||
| Repurchase of common stock | (76,366 | ) | (4,259 | ) | ||||
| Net cash provided by (used in) financing activities | (37,355 | ) | 116,345 | |||||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH | (1,451 | ) | (3,936 | ) | ||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (34,296 | ) | (98,043 | ) | ||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 99,180 | 180,244 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 64,884 | $ | 82,201 | ||||
COMPUWARE CORPORATION AND SUBSIDIARIES
OPERATIONAL HIGHLIGHTS
(Dollar Amounts In Thousands)
| QUARTER | ||||||||||||
| ENDED | ||||||||||||
| DEC 31, | YR - YR | |||||||||||
| 2012 | 2011 | % Chg | ||||||||||
| Total Product Software Revenue by Geography | ||||||||||||
| North America | $ | 106,211 | $ | 98,244 | 8.1 | % | ||||||
| International | 81,754 | 85,651 | (4.5 | %) | ||||||||
| Deferred License Fees | ||||||||||||
| Current | $ | 19,451 | $ | 26,952 | (27.8 | %) | ||||||
| Long-term | 10,276 | 12,270 | (16.3 | %) | ||||||||
| Deferred Maintenance | ||||||||||||
| Current | $ | 310,450 | $ | 323,485 | (4.0 | %) | ||||||
| Long-Term | 269,275 | 305,549 | (11.9 | %) | ||||||||
| Deferred Subscription | ||||||||||||
| Current | $ | 48,315 | $ | 50,444 | (4.2 | %) | ||||||
| Long-Term | 8,333 | 13,265 | (37.2 | %) | ||||||||
| Deferred Professional Services | $ | 22,322 | $ | 20,361 | 9.6 | % | ||||||
| Deferred Application Services | $ | 36,060 | $ | 39,586 | (8.9 | %) | ||||||
| Other: | ||||||||||||
| Total Company Headcount | 4,579 | 4,722 | (3.0 | %) | ||||||||
| Total DSO (Billed) | 83.9 | 88.0 | ||||||||||
| Total DSO | 157.0 | 167.4 | ||||||||||
| Stock-based compensation expense | ||||||||||||
| Cost of license fees | $ | - | $ | - | N/A | |||||||
| Cost of maintenance fees | 164 | 202 | (18.8 | %) | ||||||||
| Cost of subscription fees | (47 | ) | (68 | ) | 30.9 | % | ||||||
| Cost of professional services | 65 | 54 | 20.4 | % | ||||||||
| Cost of application services | 396 | 254 | 55.9 | % | ||||||||
| Technology development and support | 468 | 575 | (18.6 | %) | ||||||||
| Sales and marketing | 1,328 | 1,493 | (11.1 | %) | ||||||||
| Administrative and general | 3,110 | 3,062 | 1.6 | % | ||||||||
| Total stock-based compensation expense before income taxes | $ | 5,484 | $ | 5,572 | (1.6 | %) | ||||||
COMPUWARE CORPORATION AND SUBSIDIARIES
BUSINESS UNIT RESULTS OF OPERATIONS
(In Thousands)
| Covisint | ||||||||||||||||||||||||||||||||
| Professional | Application | Unallocated | ||||||||||||||||||||||||||||||
| Quarter Ended: | APM | Changepoint | Mainframe | Uniface | Services | Services | Expenses | Total | ||||||||||||||||||||||||
| December 31, 2012 | ||||||||||||||||||||||||||||||||
| Software license fees | $ | 33,938 | $ | 2,684 | $ | 24,743 | $ | 3,466 | - | - | - | $ | 64,831 | |||||||||||||||||||
| Maintenance fees | 23,369 | 4,139 | 67,048 | 7,785 | - | - | - | 102,341 | ||||||||||||||||||||||||
| Subscription fees | 20,130 | 663 | - | - | - | - | - | 20,793 | ||||||||||||||||||||||||
| Professional services fees | 7,624 | 3,137 | 673 | 1,413 | $ | 33,202 | - | - | 46,049 | |||||||||||||||||||||||
| Application services fees | - | - | - | - | - | $ | 23,852 | - | 23,852 | |||||||||||||||||||||||
| Total revenues | 85,061 | 10,623 | 92,464 | 12,664 | 33,202 | 23,852 | - | 257,866 | ||||||||||||||||||||||||
| Operating expenses | 76,773 | 10,951 | 24,727 | 5,254 | 28,264 | 21,664 | $ | 50,584 | 218,217 | |||||||||||||||||||||||
| Income (loss) from operations | $ | 8,288 | $ | (328 | ) | $ | 67,737 | $ | 7,410 | $ | 4,938 | $ | 2,188 | $ | (50,584 | ) | $ | 39,649 | ||||||||||||||
| Contribution margin % | 9.7 | % | (3.1 | %) | 73.3 | % | 58.5 | % | 14.9 | % | 9.2 | % | 15.4 | % | ||||||||||||||||||
| Operating expenses include: | ||||||||||||||||||||||||||||||||
| Stock awards compensation | $ | 680 | $ | 12 | $ | 606 | $ | 6 | $ | 45 | $ | 396 | $ | 3,739 | $ | 5,484 | ||||||||||||||||
| Amortization of purchased software | $ | 2,272 | $ | - | $ | - | $ | - | $ | - | $ | 148 | $ | - | $ | 2,420 | ||||||||||||||||
| Amortization of other acquired intangible assets | $ | 1,758 | $ | - | $ | - | $ | - | $ | - | $ | 113 | $ | - | $ | 1,871 | ||||||||||||||||
| December 31, 2011 | ||||||||||||||||||||||||||||||||
| Software license fees | $ | 24,360 | $ | 3,513 | $ | 26,720 | $ | 2,528 | - | - | - | $ | 57,121 | |||||||||||||||||||
| Maintenance fees | 19,441 | 3,895 | 75,782 | 7,725 | - | - | - | 106,843 | ||||||||||||||||||||||||
| Subscription fees | 19,379 | 552 | - | - | - | - | - | 19,931 | ||||||||||||||||||||||||
| Professional services fees | 8,893 | 4,517 | 558 | 981 | $ | 35,626 | - | - | 50,575 | |||||||||||||||||||||||
| Application services fees | - | - | - | - | - | $ | 18,587 | - | 18,587 | |||||||||||||||||||||||
| Total revenues | 72,073 | 12,477 | 103,060 | 11,234 | 35,626 | 18,587 | - | 253,057 | ||||||||||||||||||||||||
| Operating expenses | 82,118 | 11,683 | 24,721 | 5,044 | 31,794 | 17,265 | $ | 47,839 | 220,464 | |||||||||||||||||||||||
| Income (loss) from operations | $ | (10,045 | ) | $ | 794 | $ | 78,339 | $ | 6,190 | $ | 3,832 | $ | 1,322 | $ | (47,839 | ) | $ | 32,593 | ||||||||||||||
| Contribution margin % | (13.9 | %) | 6.4 | % | 76.0 | % | 55.1 | % | 10.8 | % | 7.1 | % | 12.9 | % | ||||||||||||||||||
| Operating expenses include: | ||||||||||||||||||||||||||||||||
| Stock awards compensation | $ | 1,679 | $ | 82 | $ | 415 | $ | 47 | $ | 28 | $ | 254 | $ | 3,067 | $ | 5,572 | ||||||||||||||||
| Amortization of purchased software | $ | 2,563 | $ | - | $ | - | $ | - | $ | - | $ | 148 | $ | - | $ | 2,711 | ||||||||||||||||
| Amortization of other acquired intangible assets | $ | 2,143 | $ | - | $ | - | $ | - | $ | - | $ | 113 | $ | - | $ | 2,256 | ||||||||||||||||
COMPUWARE CORPORATION AND SUBSIDIARIES
BUSINESS UNIT RESULTS OF OPERATIONS
(In Thousands)
| Covisint | ||||||||||||||||||||||||||||||||
| Professional | Application | Unallocated | ||||||||||||||||||||||||||||||
| Nine Months Ended: | APM | Changepoint | Mainframe | Uniface | Services | Services | Expenses | Total | ||||||||||||||||||||||||
| December 31, 2012 | ||||||||||||||||||||||||||||||||
| Software license fees | $ | 74,237 | $ | 5,545 | $ | 43,566 | $ | 7,151 | - | - | - | $ | 130,499 | |||||||||||||||||||
| Maintenance fees | 66,544 | 12,321 | 205,972 | 22,650 | - | - | - | 307,487 | ||||||||||||||||||||||||
| Subscription fees | 59,526 | 1,977 | - | - | - | - | - | 61,503 | ||||||||||||||||||||||||
| Professional services fees | 23,003 | 9,898 | 1,640 | 3,684 | $ | 101,930 | - | - | 140,155 | |||||||||||||||||||||||
| Application services fees | - | - | - | - | - | $ | 64,981 | - | 64,981 | |||||||||||||||||||||||
| Total revenues | 223,310 | 29,741 | 251,178 | 33,485 | 101,930 | 64,981 | - | 704,625 | ||||||||||||||||||||||||
| Operating expenses | 226,928 | 31,392 | 67,856 | 15,279 | 85,322 | 59,731 | $ | 144,731 | 631,239 | |||||||||||||||||||||||
| Income (loss) from operations | $ | (3,618 | ) | $ | (1,651 | ) | $ | 183,322 | $ | 18,206 | $ | 16,608 | $ | 5,250 | $ | (144,731 | ) | $ | 73,386 | |||||||||||||
| Contribution margin % | (1.6 | %) | (5.6 | %) | 73.0 | % | 54.4 | % | 16.3 | % | 8.1 | % | 10.4 | % | ||||||||||||||||||
| Operating expenses include: | ||||||||||||||||||||||||||||||||
| Stock awards compensation | $ | 3,834 | $ | 42 | $ | 2,118 | $ | 42 | $ | 160 | $ | 1,105 | $ | 13,362 | $ | 20,663 | ||||||||||||||||
| Amortization of purchased software | $ | 6,755 | $ | - | $ | - | $ | - | $ | - | $ | 444 | $ | - | $ | 7,199 | ||||||||||||||||
| Amortization of other acquired intangible assets | $ | 5,435 | $ | - | $ | - | $ | - | $ | - | $ | 338 | $ | - | $ | 5,773 | ||||||||||||||||
| December 31, 2011 | ||||||||||||||||||||||||||||||||
| Software license fees | $ | 54,142 | $ | 7,643 | $ | 83,874 | $ | 7,299 | - | - | - | $ | 152,958 | |||||||||||||||||||
| Maintenance fees | 57,003 | 11,647 | 230,776 | 23,482 | - | - | - | 322,908 | ||||||||||||||||||||||||
| Subscription fees | 56,639 | 1,517 | - | - | - | - | - | 58,156 | ||||||||||||||||||||||||
| Professional services fees | 22,646 | 12,487 | 3,960 | 3,259 | $ | 115,051 | - | - | 157,403 | |||||||||||||||||||||||
| Application services fees | - | - | - | - | - | $ | 52,302 | - | 52,302 | |||||||||||||||||||||||
| Total revenues | 190,430 | 33,294 | 318,610 | 34,040 | 115,051 | 52,302 | - | 743,727 | ||||||||||||||||||||||||
| Operating expenses | 231,489 | 33,989 | 72,926 | 15,595 | 95,045 | 53,934 | $ | 150,379 | 653,357 | |||||||||||||||||||||||
| Income (loss) from operations | $ | (41,059 | ) | $ | (695 | ) | $ | 245,684 | $ | 18,445 | $ | 20,006 | $ | (1,632 | ) | $ | (150,379 | ) | $ | 90,370 | ||||||||||||
| Contribution margin % | (21.6 | %) | (2.1 | %) | 77.1 | % | 54.2 | % | 17.4 | % | (3.1 | %) | 12.2 | % | ||||||||||||||||||
| Operating expenses include: | ||||||||||||||||||||||||||||||||
| Stock awards compensation | $ | 4,945 | $ | 288 | $ | 1,451 | $ | 164 | $ | 231 | $ | 1,196 | $ | 9,280 | $ | 17,555 | ||||||||||||||||
| Amortization of purchased software | $ | 5,994 | $ | - | $ | - | $ | - | $ | - | $ | 444 | $ | 6,438 | ||||||||||||||||||
| Amortization of other acquired intangible assets | $ | 5,956 | $ | - | $ | - | $ | - | $ | - | $ | 338 | $ | 6,294 | ||||||||||||||||||