BMC Software Inc. Earnings Cheat Sheet: Streak of Two Straight Profit Rises Snapped

S&P 500 (NYSE:SPY) component BMC Software, Inc. (NASDAQ:BMC) reported its results for the second quarter. BMC Software is a software vendor offering an extensive portfolio of software solutions, including mainframe, distributed and virtualized systems, applications, databases, and IT process management functions.

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BMC Software Earnings Cheat Sheet for the Second Quarter

Results: Net income for the application software company fell to $114.7 million (65 cents per share) vs. $131.8 million (73 cents per share) a year earlier. This is a decline of 13% from the year earlier quarter.

Revenue: Rose 10.8% to $556.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: BMC reported adjusted net income of 87 cents a share. By that measure, it beat the mean estimate of 71 cents per share. It beat the average revenue estimate of $540.4 million.

Quoting Management: “During the second quarter, we reported solid growth in total revenue, non-GAAP earnings and cash flow from operations, however, our performance was mixed,” said Bob Beauchamp, BMC’s chairman and chief executive officer. “While we are aggressively addressing our business challenges, we continue to see positive trends and increasing market opportunities in several initiatives, including cloud management, Software-as-a Service and professional services. We also continue to benefit from the strength of our technology, solid MSM results and large platform wins.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 9% to $502.4 million in the first quarter. The figure rose 14.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 6.3% in the third quarter of the last fiscal year from the year-ago quarter.

Last quarter’s profit decrease breaks a streak of two consecutive quarters of year-over-year profit increases. Net income rose 3.1% in the first quarter and 3.1% in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the third quarter have not changed from 75 cents. For the fiscal year, the average estimate has moved down from $2.80 a share to $2.78 over the last sixty days.

Competitors to Watch: Oracle Corporation (NASDAQ:ORCL), Microsoft Corporation (NASDAQ:MSFT), Red Hat, Inc. (NYSE:RHT), CA, Inc. (NASDAQ:CA), Novell, Inc. (NASDAQ:NOVL), Intl. Business Machines Corp. (NYSE:IBM), Quest Software, Inc. (NASDAQ:QSFT), Compuware Corporation (NASDAQ:CPWR), SAP AG (NYSE:SAP), and Hewlett-Packard Company (NYSE:HPQ).

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(Source: Xignite Financials)