BMC Software Inc.
) reported first quarter 2013 earnings per share of 43 cents, below
the Zacks Consensus Estimate of 60 cents.
Total revenue in the reported quarter was $504.4 million, edging
up 0.4% year over year.
The company reported total ESM revenue of $308 million, almost
flat with the year-ago period. Total MSM revenue inched up 1.0%
year on year to $197.0 million.
License revenue in the first quarter was $171.6 million, down
9.4% from the year-ago quarter. This apart, the ESM license revenue
was $97 million, down 18% on a year-over-year basis, while MSM
license revenue was $75.0 million, up 5% from the year-ago
Maintenance revenue in the first quarter was $278.8 million, an
increase of 5.4% compared with the year-ago period. ESM maintenance
revenue was $157 million, up 11% and MSM maintenance revenue was
$122 million, down 1% from the first quarter of fiscal 2012.
Professional services revenue, which is included in the ESM
business unit, increased 11.8 year on year to $54.0 million.
Cloud-related license bookings in the quarter nearly doubled
year over year. In the quarter, BMC's SaaS solutions added roughly
70 new customers. The number of active SaaS customers jumped almost
225.0% from the prior-year quarter.
Operating income on a GAAP basis was $73.9 million, down 35.8%
from $115.1 million in the year-ago quarter. Excluding special
items such as severance costs and amortization of intangible assets
but including stock-based compensation expense, non-GAAP operating
income was $139.7 million in the reported quarter, up 26.5% from
$110.4 million in the prior-year quarter.
Net income on a GAAP basis was $54.1 million compared with $95.7
million in the year-ago quarter. Excluding special items such as
amortization and severance costs but including stock-based
compensation expense, non-GAAP net income was 43 cents per share
compared with 56 cents in the year-ago quarter.
Balance Sheet, Cash Flow & Share Repurchase
BMC Software generated $219.6 million in cash flow from
operations in the reported quarter versus $212.9 million in the
previous quarter. The company exited the quarter with cash and
investments of $1.60 billion, up from $1.58 billion in the prior
During the reported quarter, BMC repurchased 3.5 million shares
of the company's common stock for a total cost of $150 million.
For fiscal 2013, BMC expects non-GAAP diluted earnings per share
in the range of $3.49 to $3.59. The company also expects full-year
fiscal 2013 cash flow from operations to be in the range of $785.0
million to $835.0 million, reflecting almost a 100 basis point
improvement over the midpoint range of fiscal 2012.
BMC Software is one of the leading software vendors and
providers of system and service management solutions across the
globe. BMC reported sluggish first quarter 2013 results, with EPS
falling short of our expectation and revenue remaining flat.
However, the company witnessed substantial cloud bookings and
increased SaaS customers.
The company witnessed growth in most of its business segments
and generated decent cash flow. However, we are a bit apprehensive
about the bleak business conditions in Europe. Moreover, growing
competition from big players such as
) will pose challenges for the company.
The company carries a Zacks #3 Rank, implying a short-term Hold
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