Segment Information

3 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Information

Note 9 – Segment Information

The Company previously operated in four business segments: products, web application performance management services, professional services and application services. Effective April 1, 2011, the Company realigned its business unit structure which had the following effect: (1) the former products segment split into four new segments: Application Performance Management, Mainframe, Changepoint and Uniface; (2) the former web performance services segment (Gomez SaaS solution) is combined with Gomez on-premises software (formerly Vantage) and reported within the APM segment; and (3) the operating results of our software related services are reported within APM, Mainframe, Changepoint and Uniface, as applicable (previously reported in the Professional Services segment).

As a result of these changes, Compuware now has six business segments: APM, Mainframe, Changepoint, Uniface, Professional Services and Application Services.

This business unit structure gives the Company better visibility and control over the operations of the business and increases its market agility, enabling it to more effectively capitalize on market conditions and competitive advantages to maximize revenue growth and profitability. The segment presentation in the prior period has been recast to conform to the current presentation of the business segments. This change did not have an impact on previously reported consolidated financial results.

The Company's products and services are offered worldwide to the largest IT organizations across a broad spectrum of technologies, including mainframe, distributed, Internet and mobile platforms and provide the following capabilities:

· APM includes Gomez SaaS and on-premises solutions. The SaaS solutions are designed to test and monitor the performance, availability and quality of companies' web and mobile applications. The on-premises solutions provide detailed application insight that identifies and helps correct the causes of poor application performance within client workstations, network, server, Java and .NET environments.

· Mainframe solutions are designed to improve the productivity of development, maintenance and support teams in application analysis, testing, defect detection and remediation, fault management, file and data management, data compliance and application performance management specifically within IBM mainframe environments.

· Changepoint is a business portfolio management and professional services automation solution that addresses the needs of executives within technology companies, enterprise IT and professional services organizations, allowing for management of the entire customer lifecycle, as well as for improved process efficiency, planning and visibility across program, project and product portfolios.

· Uniface is a rapid application development environment for building, renewing and integrating the largest and most complex enterprise applications. Uniface enables enterprises to meet increasing demand for developing complex, secure and global Web 2.0 applications, deployable on any platform including the cloud.

· IT professional services include a broad range of IT services for mainframe, distributed and mobile environments, including mobile computing application development and integration, package software customization, cloud computing consulting, and development and integration of legacy systems.

· Application services, marketed under the brand name “Covisint” and provided on a SaaS platform, use business-to-business applications to integrate vital business information and processes between partners, customers and suppliers.

The Company evaluates the performance of its segments based primarily on operating profit before certain charges such as internal information system support, finance, human resources, legal, administration and other corporate charges (“unallocated expenses”). The allocation of income taxes is not evaluated at the segment level. Financial information for the Company's business segments was as follows (in thousands):

	Three Months Ended
	June 30, 2011
																Unallocated
	APM			MF		CP			UF		PS		AS			Expenses			Total
Software license fees	$	11,453		$	18,698	$	1,994		$	1,981	$	-	$	-		$	-		$	34,126
Maintenance and subscription fees		37,094			76,975		4,302			7,738		-		-			-			126,109
Professional services fees		6,966			1,833		3,670			1,206		39,897		16,167			-			69,739
Total revenues		55,513			97,506		9,966			10,925		39,897		16,167			-			229,974
Operating expenses		69,439			24,076		11,362			5,400		31,589		16,834			51,657			210,357
Income (loss) from operations	$	(13,926	)	$	73,430	$	(1,396	)	$	5,525	$	8,308	$	(667	)	$	(51,657	)	$	19,617

	Three Months Ended
	June 30, 2010
															Unallocated
	APM			MF		CP			UF		PS		AS		Expenses			Total
Software license fees	$	14,232		$	14,708	$	2,352		$	2,038	$	-	$	-	$	-		$	33,330
Maintenance and subscription fees		28,445			77,741		3,551			7,022		-		-		-			116,759
Professional services fees		4,158			1,646		3,519			980		34,854		11,239		-			56,396
Total revenues		46,835			94,095		9,422			10,040		34,854		11,239		-			206,485
Operating expenses		56,795			23,752		11,288			4,687		29,804		10,477		47,295			184,098
Income (loss) from operations	$	(9,960	)	$	70,343	$	(1,866	)	$	5,353	$	5,050	$	762	$	(47,295	)	$	22,387

The Company does not evaluate assets and capital expenditures on a segment basis, and accordingly such information is not provided.

Financial information regarding geographic operations is presented in the table below (in thousands):

	Three Months Ended
	June 30,
	2011		2010
Revenues:
United States	$	149,239	$	132,156
Europe and Africa		54,604		48,338
Other international operations		26,131		25,991
Total revenues	$	229,974	$	206,485