CA Technologies and Compuware Under Review: Application Software Companies Restructure to Survive

  CA Technologies and Compuware Under Review: Application Software Companies
                            Restructure to Survive

  PR Newswire

  LONDON, February 5, 2013

LONDON, February 5, 2013 /PRNewswire/ --

Application software industry is constantly evolving and the influx of new
technologies forces the companies to adopt new product mixes. In some cases,
such transition may lead to a need for quick adaptation as evidenced by
leading application software company CA Technologies (NASDAQ: CA). The company
faces changing demand for its mainframe business due to technological
innovation. Consequently, it is focusing on alternatives like providing
enterprise solutions. Compuware Corporation (NASDAQ: CPWR), on the other hand,
is planning to adapt to changing times by cutting costs and disinvesting
non-core businesses. StockCall released new technical research on the
Application Software industry players CA Technologies and Compuware. Sign up
with us today free of charge and read through the complete analysis at

CA Technologies Focuses on Enterprise Solutions

CA Technologies is an attractive income stock with 4 percent dividend yield.
The company also reported better-than-expected results for its fiscal third
quarter, however it retained its lower outlook for the entire year. The
company recently hired ex-CEO of Taleo Corp., Michael Gregoire as its new
chief executive officer. The appointment raised some speculation about the
company positioning itself as a takeover target. However, no such indication
has been given by CA Technologies. The new CEO also has not provided any
vision for his future plans and it looks like that it would be business as
usual for CA Technologies. Download the free technical analysis on CA
Technologies by registering now at

The stock slowed down late last year after cutting back its forecasts.
However, it also plans to return up to $2.5 billion to its shareholders by
March 31 of 2014. Despite this, the future for the company is a little
interesting as its mainframe business is struggling to hold its own in the
wake of technological advancements. Similarly, its enterprise solutions
business is also slowly getting into a position to generate buzz. Enterprise
solutions also have lower margins, so even if CA Technologies is able to make
inroad in this segment, it is likely that the growth will be able to offset
the impact of slowdown in mainframe business. In order to protect its margins,
the company is now looking to curtail its costs.

Compuware Corporation Fends off Acquisition Bid

Compuware Corporation presented better-than-expected quarterly numbers, albeit
it beat margins only slightly. However, the company had been at the center of
a lucrative buyout deal. The company received $11 a piece offer from Elliott
Management Corporation but the offer was summarily declined by Compuware
Corporation as it felt that the offer undervalues its potential. Sign up for
free and access the complimentary technical analysis on Compuware at

The company is all set to go ahead with its cost-cutting plan spanning next 3
years. Compuware Corporation is looking to slash its costs by $60 million. The
cost-cutting will help the company in boosting its bottom-line. It also
recently announced payment of 50 cents per share in dividend, which gives it a
dividend yield of healthy 4.5 percent. The market welcomed the news and the
stock is currently trading above the price offered by Elliott Management.

Compuware Corporation is expected to benefit from the spinning of its cloud
storage service unit, Covisint. The company is planning to float an IPO for
this purpose. For its third quarter, Covisint increased its revenue 28 percent
on a year-over-year basis. Compuware Corporation itself reported better
revenue as well as margins.

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