Compuware to make decision soon on takeover bid
Jan 22, 2013 (Menafn - Detroit Free Press - McClatchy-Tribune Information Services via COMTEX) --Compuware CEO Robert Paul said its board of directors is wrapping up its review this week of an unsolicited takeover bid by a New York hedge fund.
Paul is scheduled to speak in a conference call with analysts at 5 p.m. today. He made his remarks as the Detroit-based software company reported its first first earnings report since last month's offer by Elliot Management.
Compuware stock closed up 6 cents to 11.06 before the earnings were released after the close of the stock market.
Compuware reported a small year-over-year increase in quarterly revenues. The company's board of directors had said it wouldn't decide whether to accept the 2.3 billion, 11-per-share offer from Elliott Management until the release of the earnings report.
Total revenues at Compuware for the quarter ending Dec. 31 were 257.9 million, up 4.8 million from the same quarter a year ago. The company's net income was 25.3 million, an increase of 3.7 million from the same quarter in 2011.
Earnings per share were .12 for the quarter and .21 for the fiscal year to date. Per-share earnings were .28 in the first three quarters of the previous year.
However, the firm's net income for the first nine months of its current fiscal year is down 14.8 million from levels of a year ago. The company's fiscal year ends March 31.
"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," Paul said in the statement.
Elliott Management, which owns about 8% of Compuware stock, says its 11-per-share bid is 25% higher than what the stock was trading for in late November when it initially disclosed the possibility of a takeover.
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