BMC Software`s non-GAAP earnings, which exclude special items, assuming an effective tax rate of 28%, were $64 million, or $0.30 per diluted share, for the third quarter of fiscal 2006. This represents a 36% increase in earnings per share over the year-ago quarter.
Reporting financial results for the third quarter of fiscal 2006, ended 31 December 2005, the company says in a statement that its non-GAAP net income was $50 million, or $0.22 per diluted share.
Fiscal 2006 third quarter net earnings on a GAAP basis were $47 million, or $0.22 per diluted share, representing a 38% increase in earnings per share over the year-ago quarter. In the year-ago quarter, net earnings on a GAAP basis were $36 million, or $0.16 per diluted share.
Total revenues, BMC states, for the period were $380 million, compared with $387 million a year ago and $362 million in the second quarter. Non-GAAP operating expenses declined by $36 million, or 10% from a year ago to $310 million, and increased by about $10 million from the second quarter.
Non-GAAP operating income increased by $29 million, or 71%, to $71 million, and non-GAAP operating margin for the quarter increased from 11% in the prior year to 19%. The company continues to maintain a strong balance sheet, ending the third quarter of fiscal 2006 with $1.17 billion of cash and marketable securities and $1.57 billion in deferred revenues.
During the third fiscal quarter, the company continued its accelerated stock buy-back programme, it says, spending $100 million to repurchase 4.9 million outstanding shares. During the current fiscal year, the company repurchased a total of 14.8 million shares for $286 million.
This includes repurchases under the company`s new $1 billion buyback programme approved by BMC`s board of directors in the third quarter.
"We continued to deliver on our key goals during the third quarter," said Bob Beauchamp, president and CEO of BMC.
"We significantly improved profitability and saw momentum continue with our service management solutions with strong growth in licence bookings. Our company remains focused on executing our business service management strategy and on maintaining our financial discipline in order to further improve our performance."
Licence bookings in the third quarter of fiscal 2006 were $170 million, an increase of 57% sequentially and a decline of 11% from the year-ago quarter.
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