Segment Information

6 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

Note 10 – Segment Information

In previous fiscal years, the Company 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) and Gomez On-premises software (formerly Vantage) comprise the APM segment; and (3) the operating results of our software related professional 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. dynaTrace operations are included within our APM segment. The acquisition of dynaTrace provided additional technology which enables continuous tracking of business transactions and provides exact identification of performance problems, enhancing our Gomez On-premises software solutions.

·   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.

·   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
	September 30, 2011
																Unallocated
	APM			MF		CP			UF		PS		AS			Expenses			Total
Software license fees	$	18,329		$	38,456	$	2,136		$	2,790	$	-	$	-		$	-		$	61,711
Maintenance and subscription fees		37,728			78,019		4,415			8,019		-		-			-			128,181
Professional services fees		6,787			1,569		4,300			1,072		39,528		17,548			-			70,804
Total revenues		62,844			118,044		10,851			11,881		39,528		17,548			-			260,696
Operating expenses		79,932			24,129		10,944			5,151		31,662		19,835			50,883			222,536
Income (loss) from operations	$	(17,088	)	$	93,915	$	(93	)	$	6,730	$	7,866	$	(2,287	)	$	(50,883	)	$	38,160

	Three Months Ended
	September 30, 2010
															Unallocated
	APM			MF		CP			UF		PS		AS		Expenses			Total
Software license fees	$	18,229		$	22,761	$	2,248		$	2,375	$	-	$	-	$	-		$	45,613
Maintenance and  subscription fees		33,201			77,886		3,611			7,309		-		-		-			122,007
Professional services fees		5,309			1,488		3,829			1,056		34,405		12,162		-			58,249
Total revenues		56,739			102,135		9,688			10,740		34,405		12,162		-			225,869
Operating expenses		57,282			23,420		11,402			4,612		28,836		10,963		48,493			185,008
Income (loss) from operations	$	(543	)	$	78,715	$	(1,714	)	$	6,128	$	5,569	$	1,199	$	(48,493	)	$	40,861

	Six Months Ended
	September 30, 2011
																Unallocated
	APM			MF		CP			UF		PS		AS			Expenses			Total
Software license fees	$	29,782		$	57,154	$	4,130		$	4,771	$	-	$	-		$	-		$	95,837
Maintenance and subscription fees		74,822			154,994		8,717			15,757		-		-			-			254,290
Professional services fees		13,753			3,402		7,970			2,278		79,425		33,715			-			140,543
Total revenues		118,357			215,550		20,817			22,806		79,425		33,715			-			490,670
Operating expenses		149,371			48,205		22,306			10,551		63,251		36,669			102,540			432,893
Income (loss) fromoperations	$	(31,014	)	$	167,345	$	(1,489	)	$	12,255	$	16,174	$	(2,954	)	$	(102,540	)	$	57,777

	Six Months Ended
	September 30, 2010
															Unallocated
	APM			MF		CP			UF		PS		AS		Expenses			Total
Software license fees	$	32,461		$	37,469	$	4,600		$	4,413	$	-	$	-	$	-		$	78,943
Maintenance and subscription fees		61,646			155,627		7,162			14,331		-		-		-			238,766
Professional services fees		9,467			3,134		7,348			2,036		69,259		23,401		-			114,645
Total revenues		103,574			196,230		19,110			20,780		69,259		23,401		-			432,354
Operating expenses		114,077			47,172		22,690			9,299		58,640		21,440		95,788			369,106
Income (loss) from operations	$	(10,503	)	$	149,058	$	(3,580	)	$	11,481	$	10,619	$	1,961	$	(95,788	)	$	63,248

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				Six Months Ended
	September 30,				September 30,
	2011		2010		2011		2010
Revenues:
United States	$	171,097	$	145,740	$	320,336	$	277,896
Europe and Africa		55,726		53,073		110,330		101,411
Other international operations		33,873		27,056		60,004		53,047
Total revenues	$	260,696	$	225,869	$	490,670	$	432,354

	As of		As of
	September 30,		March 31,
	2011		2011
Long-lived assets
United States	$	948,363	$	944,506
Europe and Africa		250,075		33,037
Other international operations		9,194		7,838
Total long-lived assets	$	1,207,632	$	985,381

Long-lived assets are comprised of property, plant and equipment, goodwill and capitalized software.