BMC Wins Specsavers Deal - Analyst Blog

By Zacks Equity Research,

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BMC Software Inc. ( BMC ) was selected by the privately-held UK-based Specsavers for their information technology service management (ITSM) needs. Specsavers, one of the world's biggest optical chain stores, is increasing its store count two-fold and they opted for BMC's solutions to efficiently address the multiple requirements of its optometrist partners. The financial impact for BMC was not disclosed.

Specsavers has a tight deadline in mind, which is expected to be met by the flexible nature of BMC's solution. Moreover, BMC found favor with Specsavers because its solutions surpassed the price-to-performance needs of the company.  BMC not only met all the needs of Specsavers, but also offered a quality solution at a reasonable price to the company, which was one of the deciding factors.

Separately, BMC has been winning deals from different state departments. The company recently announced that it would provide its information ITSM support to the State of Connecticut for an undisclosed amount.

Significant Fed budget cuts have put a restriction on funds for IT administration. In such a situation, the state had no other option but to search for a cost-effective IT supervision system. After evaluating ITSM systems from key players such as CA Inc. ( CA ) and Hewlett-Packard Co. ( HPQ ), the state's administration department found BMC Software's FootPrints solution to be suitable.

Despite the flow of deals, the company reported a sluggish first quarter. However, the company saw substantial cloud bookings and increased SaaS customers.

Additionally, BMC has witnessed growth in most of its business segments and generated decent cash flow. However, the company is a bit apprehensive about the bleak business conditions in Europe. Moreover, growing competition from big players such as IBM Inc. ( IBM ), Hewlett-Packard Company ( HPQ ) , EMC Corp. ( EMC ) and CA Inc. ( CA ) will pose challenges for the company.

BMC carries a Zacks #3 Rank, implying a short-term Hold rating.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: BMC , CA , EMC , HPQ , IBM

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