Wednesday, July 27, 2011

BMC Software Reports Earnings

BMC reported 1st quarter results today, EPS was $.72 compared to the estimate of $.68. Operating income rose 6%. Net income in the three months through June 30 rose 3 percent to $95.7 million, or 53 cents per share, from $92.8 million, or 50 cents per share, a year earlier. Revenue was $502 million compared to expecatations of $506 million.

The miss in revenue was due to the lackluster growth of BMC's Enterprise Management Service which accounts for 2/3 of sales. However, BMC raised its EPS targets for next year by $.04. BMC looks to profit from businesses shifting towards cloud services and other IT-infustructures. BMC has high expectations for the coming year. The CEO, Bob Beauchamp, looks to leverage technology leadership and capitalize on growing customer demand for more flexible IT-infastructures.

Based on the slow start, BMC reduced its annual forecast for enterprise systems management bookings growth to the mid-teen percentages from the low 20s.


No comments: