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Compuware shares tumble
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April 12, 2000: 1:26 p.m. ET
Computer software maker warns 4Q profit will be half analysts' estimates
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NEW YORK (CNNfn) - Shares in Compuware sank Wednesday as investors reacted to the company's dismal warning on fiscal fourth-quarter earnings.
Stock in Compuware (CPWR: Research, Estimates), a Farmington Hills, Mich.-based computer software firm, tumbled 7-7/16 to 12-5/8 in morning trade.
Compuware warned Wednesday that its earnings for the fourth quarter, ended March 31, at 13-to-15 cents a share, will be less than half what Wall Street had expected. The consensus of analysts surveyed by FirstCall/Thomson Financial was 35 cents a share.
 "We're obviously quite disappointed with our performance during the fourth quarter," Compuware said in a statement. "Revenue from both our professional services and products divisions are lower than expected."
Compuware said management in the professional services unit were concentrating more on delivery services than sales leading, which contributed to a loss of about 12-1/2 cents for the quarter.
"We had well-intentioned executives that made several bad decisions," said Beth Chappell, Compuware executive vice president of corporate communications and investor relations in a conference call. "They are no longer with the company."
Compuware estimated fourth-quarter revenue will be $566 million to $581 million. Revenue from professional services was estimated at $260 million to $265 million; software license fee revenue was projected at $193 million to $198 million; and maintenance revenue was estimated at $113 million to $118 million.
Compuware was also hit by a number of business deals that did not close during the quarter.
Both J.P. Morgan and Chase Hambrecht & Quist downgraded Compuware to "market perform" from "buy."
"I think it will take a while for the company to get back on track," said Christopher J. Galvin, an analyst with Chase H & Q. "There are some deep organizational issues so we are just going to wait it out for a while." 
-- from staff and wire reports
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Compuware Corp.
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