Compuware estimates its fourth quarter revenues will be in a range of $505-to-$515 million, compared with the consensus analyst estimate of $548 million. Earnings per share (diluted computation before amortization expense) are estimated to be in a range of $.15-to-$.17, on target with the consensus analyst estimate of $.16. Compuware President and Chief Operating Officer Joe Nathan attributed $10-to-$15 million of the revenue shortfall to the negative impact of foreign currency and the reorganization of the professional services business.
Foreign currency exchange rates significantly dampened what would have been a solid quarter, given current economic conditions, Nathan said. But we are pleased with the sequential growth we see in our earnings and distributed product line, evidence that our transition to a transaction-based business model is succeeding.
