9. SEGMENT INFORMATION
Compuware operates in two business segments in the software industry: products and services. The Company provides software products and professional services to the world's largest IT organizations that help IT professionals efficiently develop, implement and support the applications that run their businesses.

The Company's products are designed to support three key activities within the application development process: building, testing and managing the application to optimize performance in production.

The Company also offers a broad range of data processing professional services including business systems analysis, design and programming, software conversion and system planning and consulting.

The Company evaluates the performance of its segments based primarily on operating profit before administrative and general expense, purchased research and development expense and net other income. The allocation of income taxes is not evaluated at the segment level.

No single customer provides more than 10% of the Company's revenue.

Financial information for the Company's business segments is as follows (in thousands):

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

The Company does not evaluate assets and capital expenditures on a segment basis, and accordingly such information is not provided. Less than 10% of the Company's long-lived assets, other than financial instruments, are located outside of the United States.

  Annual Report 1999