Thursday, October 29, 2009

BMC Software Q2 Earnings Rise, Top Estimate; Boosts FY10 Earnings

BMC Software Inc. Thursday after the markets closed that its second quarter profit rose 35% from last year, as tight cost control helped offset a small decline in revenue. The company's quarterly earnings per share, excluding items, came in above analysts' expectations. At the same time, the company once again raised its earnings forecast for the fiscal year 2010.

The Houston, Texas-based business software maker reported GAAP net income for the second quarter of $94.2 million or $0.50 per share, compared to $69.8 million or $0.36 per share for the year-ago quarter.

Excluding items, non-GAAP net income for the second quarter was $123.3 million or $0.66 per share, compared to $107.6 million or $0.56 per share in the prior year quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.58 per share for the second quarter. Analysts' estimates typically exclude special items.

GAAP operating margin for the quarter improved to 29% from 23% a year ago, while non-GAAP operating margin increased to 38% from 32% last year.

Total revenue for the second quarter decreased 1% to $461.8 million from $466.7 million in the same quarter last year. Eleven analysts had a consensus revenue estimate of $463.43 million for the second quarter.

License revenue declined 0.9% from last year to $174 million in the second quarter, while maintenance revenue grew 7% to 257.4 million and professional services revenue fell 14.8% to $30.4 million.

"Our solid performance in the quarter underscores our continued market leadership, technological innovation and operating discipline," said Bob Beauchamp, BMC's chairman and chief executive officer

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