Compuware (CPWR) has bad news for investors and its share price was run-over as a result.
The company’s shares dropped 20% to $9.75.
TheStreet.com writes: "Compuware said it expects first-quarter revenue of approximately $278 million, 8% short of analysts’ expectations for $303 million. It now expects break-even earnings per share. Analysts had been expecting EPS of 10 cents a share, according to Thomson Financial."
The company also said it plans to cut $90 to $100 million in annual costs.
The odd part of the announcement is that the company would seem to be in a good business delivering software that manage businesses to manage their IT enterprises systems. Compuware claims that 90 or the Fortune 100.
What does that say about corporate IT spending?
Douglas A. McIntyre
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