Compuware is more than aware of the power of diversity. The company's software includes testing, development, and management tools for programs running on traditional mainframe computer systems, distributed computer networks, and newer Web-based systems. It also makes application development, implementation, and support software for programmers, as well as file, data, and systems management tools. The company's Gomez platform is a Web-based software testing and monitoring tool sold on a subscription basis. Compuware's services include consulting, systems integration, custom programming, maintenance, and support. It sells directly and through distributors to such clients as the BBC, the NHL, Google, and Facebook.
Compuware continues to focus on applications for distributed computing and Web-based systems, including software and services for application development, integration, and performance management. The company reorganized its four operating segments into six in 2011 to enable increased visibility and control over its product groups.
While mainframe-related sales still account for the largest portion of its product revenue, the segment is declining in relation to other business units. Mainframe products accounted for 53% of total sales in 2012, down from two-thirds the previous year. As Compuware's mainframe business shrinks, the company's strategy has shifted to focus on building its line of application performance management (APM) tools (34% of sales in 2012), which are used by corporate and institutional IT departments to measure the effectiveness of their digital transactions and other IT systems usage, and provide data to help improve operational efficiency. To this end Compuware acquired Boston-based dynaTrace software in 2011 for $256 million in cash.
The company's Gomez subscription software product, which it acquired in the fiscal 2010 purchase of Gomez for $295 million in cash, encompasses on-demand APM software and services used by businesses to manage their Web presences, including offerings for load testing, browser compatibility, and performance analysis. This Software-as-a-Service (SaaS) product complements Compuware's line of Vantage APM tools.
The company's other key applications are Changepoint and Uniface. Changepoint features professional services automation and portfolio management functions to help businesses collect data from their ongoing projects, investments, and resources to inform operational and financial planning. Uniface is a development platform used to build and integrate complex enterprise applications across the various parts of a business.
Compuware's Covisint unit provides SaaS application services over a system known as ExchangeLink, largely to clients in the automotive, health care, and energy industries. It is designed to help businesses automate their processes and share data and software.
Compuware's sales rose in 2012, while profits dipped for the second year. Sales were higher in all geographic and business segments, including the company's software licenses, maintenance fees, subscription fees, and professional services. Income decreased for the year due to higher operating expenses across all parts of the business.
President and COO Bob Paul succeeded co-founder Pete Karmanos Jr. as CEO in 2011. The planned succession marked the first time since the company's founding in 1973 that someone other than Karmanos -- who remains with the company as executive chairman -- has held the top job.
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