CA Technologies and Compuware Under Review: Application Software
Companies Restructure to Survive
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
http://www.stockcall.com/registration
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
http://www.StockCall.com/CA020513.pdf
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
http://www.StockCall.com/CPWR020513.pdf
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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