DOW JONES NEWSWIRES
BMC Software Inc.'s (BMC) fiscal second-quarter profit grew 35%
on improved margins as the maker of business software posted higher
bookings, but lower revenue.
The company again raised its full-year earnings target by 8
cents a share to $2.55 to $2.65. The revenue view was reiterated.
Shares rose 2.1% to $38 in after-hours trading. At the close, the
stock is up 38% this year.
BMC has benefited from a trend toward virtualization, which
allows one computer to do the job of many. The company has made a
number of acquisitions in recent years, including Tideway Systems
Ltd. earlier this month and MQSoftware in August.
For the quarter ended Sept. 30, BMC posted a profit of $94.2
million, or 50 cents a share, up from $69.8 million, or 36 cents a
share, a year earlier. Excluding items such as restructuring and
stock-compensation costs, earnings rose to 66 cents from 56
cents.
Revenue slid 1.1% to $461.8 million as license sales declined
0.9% but maintenance revenue grew 0.7%. Professional-services
revenue was down 15%.
Analysts polled by Thomson Reuters expected earnings of 58 cents
on revenue of $463 million.
Operating margin surged to 29.2% from 22.6%.
Total bookings for the quarter rose 6% to $431 million.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com