BMC Software Results Miss Estimate; Cuts Outlook - InvestingChannel

BMC Software Results Miss Estimate; Cuts Outlook

BMC Software Inc. (BMC: Quote) said Monday after the markets closed that its third quarter profit fell 11% from last year, as higher expenses more than offset a 6% increase in revenue.

The company’s quarterly earnings per share, excluding items, also came in below analysts’ expectations as did its quarterly revenue. At the same time, the company cut its fiscal 2013 earnings outlook.

“This quarter, BMC Software saw lower-than-expected bookings from our MSM and ESM business units. Two large MSM renewal transactions slipped out of the quarter. We believe they will close in the fourth quarter, as well as a number of other key renewals,” said Steve Solcher, BMC’s chief financial officer.

“We are scrutinizing the entire company to improve our operational discipline. This review is currently underway, and it should position us well as we enter fiscal year 2014,” said Bob Beauchamp, BMC’s chairman and chief executive officer.

BMC Software shares are currently losing 7.73% in after hours trading after closing the day’s regular trading session at $44.48, down 2 cents. The shares trade in a 52-week range of $35.16 to $45.70.

For the third quarter ended December 31, 2012, the enterprise IT management software company reported net income of $106.3 million or $0.70 per share, compared to $119.9 million and $0.71 per share for the year-ago quarter.

Excluding items, adjusted net income for the third quarter was $150.5 million or $0.99 per share, compared to $156.9 million or $0.93 per share in the prior year quarter.

On average, 14 analysts polled by Thomson Reuters expected the company to earn $1.01 per share for the third quarter. Analysts’ estimates typically exclude special items.

Total revenue for the third quarter rose 6% to $580.2 million from $548.2 million in the same quarter last year. Thirteen analysts had a consensus revenue estimate of $587.38 million.

The company said active SaaS customers more than doubled year-over-year to about 550. Third quarter SaaS revenue also more than doubled year-over-year. Cloud related license bookings for the quarter were up 44% and professional services revenue for the quarter was up 16% year-over-year.

During the third quarter, BMC repurchased a total of 14.3 million shares of its common stock. As part of the accelerated share repurchase agreement executed in November, the company received 13.1 million shares, which is in addition to 1.2 million shares repurchased for $50 million earlier in the quarter. The company currently has $700 million share repurchase authorization remaining.

The company lowered its fiscal year 2013 adjusted earnings outlook to a range of $3.35 to $3.45 per share from its prior outlook of $3.49 to $3.59 per share. Analysts currently expect the company to earn $3.56 per share for the fiscal year 2013.

Fiscal 2013 revenue growth is now expected in the low single digits, compared to prior expectations of growth in the mid single digits. Analysts currently expect growth of 3.60%.

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by RTT Staff Writer

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