BMC Software has reported better than expected results for its fiscal first quarter as revenue at the software firm rose more than 40%. Houston-based BMC, which makes business software, says net income came to $16,4 million, or 7c a share on a fully diluted basis, compared with $67,2 million, or 27c a diluted share, in the year-earlier period. Revenue increased 43% to $400,7 million.
However, the company says results for the quarter, ended June 30, included merger costs of $11,1 million, or four cents a share, acquired research and development costs of $56,6 million, or 23 cents a share, and amortisation of goodwill of $21,2 million, or 8c a share.
Excluding the costs, the company says it would have posted earnings of $105,3 million, or 42 cents a share. This was in line with analysts` expectations of 40c a share, excluding charges.
BMC says it experienced strong growth in both mainframe- and distributed-systems licence revenue and maintenance and services revenue. First-quarter total licence revenue rose 47%, and North American licence revenue rose 63%. International licence revenue rose 17% from a year earlier.
Maintenance and services revenue rose 36% for the first quarter, total mainframe revenue rose 42% and total distributed systems revenue rose 63%, from the year-ago period.
In June, the company announced it expected to take about $97 million worth of first-quarter charges in relation to an acquisition and a restructuring.
The company also announced it would cut about 275 jobs in an effort to eliminate redundancies caused in part by recent mergers. BMC Software has about 6 000 employees worldwide.
In announcing the job cuts, the company says the cuts will be across divisions and geographic areas.
* BMC products are distributed in South Africa by Software Futures, a Computer Configurations Holdings subsidiary.
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