BMC Software Announces Fiscal 2010 Second Quarter Results
More News related to BMC
- BMC Software, Salesforce.com Forge Strategic Alliance to Deliver Cloud-Based IT Service Management on the Force.com Platform
- CUSTOMER WIN: i/o Data Centers Selects BMC Software to Maintain 100% Uptime Service Level
- NTRglobal Joins BMC Software's Technology Alliance Program
- CUSTOMER WIN: UGI Utilities Improves Performance, Reduces Costs with BMC Software
- BMC Software (BMC) Tops Q2 Views; Reaffirms
-- Total bookings increased 6 percent
-- Non-GAAP operating margin increased by 6 percentage points to 38 percent
-- Non-GAAP EPS was 66 cents, up 18 percent
-- Cash flow from operations was $93 million, up 24 percent
-- Company raises fiscal year 2010 non-GAAP EPS guidance and reiterates
guidance for other key metrics
HOUSTON--(BUSINESS WIRE)-- BMC Software (NASDAQ: BMC) today announced its fiscal 2010 second quarter results.
Fiscal 2010 second quarter total revenue was $462 million, a decrease of 1 percent from the year-ago period. License revenue was $174 million, a decrease of 1 percent compared to the second quarter of fiscal 2009. On a constant currency basis, both total revenue and license revenue were roughly flat.
The Company's GAAP net earnings for the quarter were $94 million, or $0.50 per diluted share, versus $70 million and $0.36 per diluted share in the year-ago period. The Company's non-GAAP net earnings for the fiscal second quarter, excluding special items, were $123 million, or $0.66 per diluted share, compared to $108 million, or $0.56 per diluted share, in the year-ago quarter. Included in the financial tables is a complete reconciliation between non-GAAP and GAAP results.
"Our solid performance in the quarter underscores our continued market leadership, technological innovation and operating discipline," said Bob Beauchamp, BMC's chairman and chief executive officer. "The need for more productive and efficient IT management has never been greater. To meet this demand, we remain focused on investing in our business to enhance our industry-leading, highly dynamic Business Service Management platform."
The Company posted the following key results for the fiscal 2010 second quarter:
-- Total bookings were $431 million, up 6 percent as reported and 4 percent
on a constant currency basis. Total bookings showed significant
improvement compared to the first quarter, increasing by 10 percent
sequentially.
-- ESM license bookings were $109 million in the second quarter, down 9
percent from the year-ago period. ESM license bookings increased by over
50 percent sequentially.
-- Total MSM annualized bookings for the trailing twelve months were $248
million, down 6 percent from $264 million compared to the year-ago
period, but down only 1 percent on a constant currency basis.
-- ESM non-GAAP operating income increased to $71 million from $40 million.
ESM non-GAAP operating margin increased by 12 percentage points to 26
percent.
-- MSM non-GAAP operating income was $104 million compared to $109 million
in the year-ago period. MSM non-GAAP operating margin was 56 percent
compared to 58 percent.
-- The Company's balance sheet remains strong, with $1.3 billion in cash
and investments and $1.7 billion in deferred revenue.
During the second quarter, BMC increased its stock repurchase activities from the prior quarter, spending $75 million to repurchase 2.1 million shares. As of September 30, 2009, the Company has approximately $220 million remaining under its existing share repurchase program.
Steve Solcher, BMC's chief financial officer, said: "We delivered solid second quarter financial results in what remains a challenging macroeconomic environment. We demonstrated significant sequential improvement as total bookings increased 10% and ESM license bookings increased over 50% compared to the first quarter. We also had strong growth compared to a year ago in total bookings, operating margin, earnings per share, and cash flow from operations."
Fiscal 2010 Expectations
As it did last quarter, the Company is once again increasing its full-year non-GAAP EPS guidance. The Company is reiterating guidance for all other key metrics.
The Company expects non-GAAP earnings per share in the range of $2.55 to $2.65 per share, which at the midpoint would represent a 15 percent increase year-over-year and a 7 percent increase compared to the Company's initial fiscal 2010 guidance. This range excludes an estimated range of $0.61 to $0.65 per share for special items, including expenses related to the amortization of acquired technology and intangibles, stock-based compensation and restructuring activity.
The assumptions underlying this full year fiscal 2010 estimate include:
-- Total bookings and revenue growth in the low single digits on a reported
basis. At today's rates, the Company expects currency impacts to have a
slightly positive impact on both revenue and bookings;
-- A license bookings ratable rate in the low 50's versus 50 percent in
fiscal 2009 as the Company expects to return to a more normal volume of
large transactions with complex terms and conditions; and
-- A non-GAAP tax rate of 29 percent.
The Company also expects full year fiscal 2010 cash flow from operations to be between $600 million and $650 million, unchanged from prior expectations.
Conference Call
A conference call to discuss second quarter fiscal 2010 results is scheduled for today, October 29, 2009 at 4:00 pm Central Time. Those interested in participating may call (913) 312-0640 and use the pass code BMC. To access a replay of the conference call, that will be available for one week, dial (719) 457-0820 or (888) 203-1112 and use the pass code BMC. A live web cast of the conference call will be available on the Company's website at www.bmc.com/investors. A replay of the web cast will be available within 24 hours and archived on the website.
Use of Non-GAAP Financial Measures
In an effort to provide investors with additional information regarding the Company's results as determined by U.S. generally accepted accounting principles (GAAP), the Company has also disclosed in this press release and the accompanying tables the following non-GAAP information: (a) non-GAAP operating expenses, (b) non-GAAP operating income, (c) non-GAAP operating margin, (d) non-GAAP net earnings and (e) non-GAAP diluted net earnings per share. Each of these financial measures excludes the impact of certain items and therefore has not been calculated in accordance with GAAP. These non-GAAP financial measures exclude the amortization of intangible assets, charges related to in-process research and development, share-based compensation expenses and restructuring charges, as well as the related tax impacts on these items. Each of the adjustments is described in more detail below. This press release also contains a reconciliation of each of these non-GAAP measures to its most comparable GAAP financial measure.
We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our operating results because they exclude amounts that BMC management and the Board of Directors do not consider part of operating results when assessing the performance of the organization and measuring the results of the Company's performance. In addition, we have historically reported similar non-GAAP financial measures. We believe that inclusion of these non-GAAP financial measures provides consistency and comparability with past reports of financial results. BMC Management and the Board of Directors use these non-GAAP financial measures to evaluate the Company's performance and for forecasting purposes, as well as the allocation of future capital investments, and they are key variables in determining management incentive compensation. Accordingly, we believe these non-GAAP financial measures are useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making.
While we believe that these non-GAAP financial measures provide useful supplemental information, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Items such as the amortization of intangible assets, charges related to in-process research and development, share-based compensation expenses and restructuring charges that are excluded from our non-GAAP financial measures can have a material impact on net earnings. As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, net earnings, cash flow from operations or other measures of performance prepared in accordance with GAAP. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measure. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures that are included elsewhere in this press release.
The following discusses the reconciliations of our non-GAAP financial measures to the most comparable GAAP financial measures:
-- Amortization of intangible assets. Our non-GAAP financial measures exclude costs associated with the amortization of intangible assets. Management and the Board of Directors believe it is useful in evaluating the Company's and its management teams' and business units' performance during a particular time period to review the supplemental non-GAAP financial measures, which exclude amortization of intangible assets, because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by management after the acquisition. Accordingly, management and the Board of Directors do not consider these costs for purposes of evaluating the performance of the business during the applicable time period after the acquisition, and they exclude such costs when evaluating the performance of the Company, its business units and its management teams and when making decisions to allocate resources among the Company's business units.
-- In-process research and development charges. Our non-GAAP financial measures exclude in-process research and development charges recorded in prior year periods. These amounts represent the estimated fair value of core research and development projects that were incomplete as of the respective dates of acquisition and had neither reached technological feasibility nor been determined to have alternative future uses pending achievement of technological feasibility upon further development. Such amounts were required to be expensed by us as of the date of the respective acquisition. Because the costs are fixed at the time of acquisition and are not subject to management influence, management does not consider the costs in evaluating the performance of the Company and its business units nor when it allocates resources among the business units. We believe excluding these items is useful to investors because it facilitates comparisons to our historical operating results without being affected by our acquisition history and the results of other companies in our industry, which have their own unique acquisition histories.
-- Share-based compensation expenses. Our non-GAAP financial measures exclude the compensation expenses required to be recorded by GAAP for equity awards to employees and directors. Management and the Board of Directors believe it is useful in evaluating the Company's and its management teams' and business units' performance during a particular time period to review the supplemental non-GAAP financial measures, which exclude expenses related to share-based compensation, because these costs are generally fixed at the time an award is granted, are then expensed over several years and generally cannot be changed or influenced by management once granted. Accordingly, our operational managers are evaluated based on the operating expenses exclusive of share-based compensation expenses and including such charges would hamper investors' ability to evaluate the performance of our management in the manner in which the Company's management evaluates performance. Additionally, we believe it is useful in measuring the Company's performance to exclude expenses related to share-based compensation expense because it enables comparability with prior period information. Accordingly, management and the Board of Directors do not consider these costs for purposes of evaluating the performance of the business, and they exclude such costs when evaluating the performance of the Company, its business units and its management teams and when making decisions to allocate resources among the Company's business units.
-- Restructuring charges. Our non-GAAP financial measures exclude exit costs and related charges, primarily consisting of severance costs and lease abandonment costs, and any subsequent changes in estimates related to exit activities as they relate to our restructurings, which involved significant layoffs. Management and the Board of Directors believe it is useful in evaluating the Company's and its management teams' and business units' performance during a particular time period to review the supplemental non-GAAP financial measures, which exclude restructuring costs, because our operational managers are evaluated based on the operating expenses exclusive of restructuring charges and including the restructuring charges would hinder investors' ability to evaluate the performance of our management in the manner in which the Company's management evaluates performance. Accordingly, management and the Board of Directors do not consider these costs for purposes of evaluating the performance of the business, and they exclude such costs when evaluating the performance of the Company, its business units and its management teams. Additionally, management uses the non-GAAP measures to assist in its determinations regarding the allocation of resources, such as capital investment, among the Company's business units and as part of its forecasting and budgeting.
In this press release we refer to certain bookings information. Bookings represent the transactional value of new contracts executed by us and reflected in our financial statements, including amounts recorded to both revenue and deferred revenue. We also refer to growth rates for revenue and bookings at constant currency or adjusting for currency so that the business results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of the Company's business performance. Generally, when the dollar either strengthens or weakens against other currencies, the growth at constant currency rates or adjusting for currency will be higher or lower than growth reported at actual exchange rates.
Business runs on IT. IT runs on BMC Software.
Business thrives when IT runs smarter, faster and stronger. That's why the most demanding IT organizations in the world rely on BMC Software across both distributed and mainframe environments. Recognized as the leader in Business Service Management, BMC offers a comprehensive approach and unified platform that helps IT organizations cut cost, reduce risk and drive business profit. For the four fiscal quarters ended September 30, 2009, BMC revenue was approximately $1.88 billion. Visit www.bmc.com for more information.
This news release and other related public statements we make contain both historical information and forward-looking information. Statements of plans, objectives, strategies and expectations for future operations and results, identified by words such as "believe," "anticipate," "expect," "estimate" and "guidance" are forward-looking statements. Numerous important factors affect BMC Software's operating results and could cause BMC Software's actual results to differ materially from the forecasts and estimates indicated by this press release or by any other forward-looking statements made by, or on behalf of, BMC Software, and there can be no assurance that future results will meet expectations, estimates or projections. These factors include, but are not limited to, the following: 1) the possibility that general economic conditions or uncertainty cause information technology spending to be reduced or purchasing decisions to be delayed; 2) competition in our markets can result in pricing pressures and competition for new customers as well as potential displacements of our existing customers; 3) our cash flow from operations could be affected by many factors, including, but not limited to, lengthening sales cycles, the size and timing of bookings, customer payment terms, the timing of collections, increased expenses, reduced net earnings and movement in foreign currency exchange rates; 4) a significant percentage of our license transactions are completed during the final weeks and days of each quarter, which creates a level of uncertainty as to whether revenue, license bookings and/or earnings will have met expectations until after the end of the quarter; 5) our operating costs and expenses are relatively fixed over the short term, so if we have a shortfall in revenue in any given quarter, our ability to offset revenue shortfalls in the near-term is limited; 6) changes to our sales organization, including personnel and process changes, may have unintended negative consequences; 7) our expectations for revenue and earnings are based on an assumption of the percentage of license revenue which will be recognized upfront versus deferred; if our actual results do not match our assumption, our recognized revenue and resultant earnings could fall short of expectations; 8) our effective tax rate is subject to quarterly fluctuation and any change in such tax rate could affect our earnings; and 9) the additional risks and important factors described in BMC Software's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission. These filings are available on our website at www.bmc.com/investors. We undertake no obligation to update information contained in this release.
BMC, BMC Software, and the BMC Software logo are the exclusive properties of BMC Software Inc., are registered with the U.S. Patent and Trademark Office, and may be registered or pending registration in other countries. All other BMC trademarks, service marks, and logos may be registered or pending registration in the U.S. or in other countries. All other trademarks or registered trademarks are the property of their respective owners. (C) 2009 BMC Software, Inc.
BMC SOFTWARE, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Quarter Ended September 30,
Incr/(Decr)
Percentage
2008 2009
Change
(In millions, except per share data)
Revenue:
License $ 175.5 $ 174.0 (0.9)%
Maintenance 255.5 257.4 0.7%
Professional services 35.7 30.4 (14.8)%
Total revenue 466.7 461.8 (1.0)%
Cost of license revenue 29.5 26.5 (10.2)%
Cost of maintenance revenue 46.6 36.7 (21.2)%
Cost of professional 36.3 31.8 (12.4)%
services revenue
Selling and marketing 136.7 130.6 (4.5)%
expenses
Research and development 53.7 41.7 (22.3)%
expenses
General and administrative 48.2 51.2 6.2%
expenses
Amortization of intangible 8.7 8.0 (8.0)%
assets
Severance, exit costs and 1.5 0.5 (66.7)%
related charges
Total operating expenses 361.2 327.0 (9.5)%
Operating income 105.5 134.8 27.8%
Other income (loss), net 3.2 (2.2) (168.8)%
Earnings before income 108.7 132.6 22.0%
taxes
Provision for income taxes 38.9 38.4 (1.3)%
Net earnings $ 69.8 $ 94.2 35.0%
Diluted earnings per share $ 0.36 $ 0.50 38.9%
Shares used in computing 192.2 187.0 (2.7)%
diluted earnings per share
BMC SOFTWARE, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended September 30,
Incr/(Decr)
Percentage
2008 2009
Change
(In millions, except per share data)
Revenue:
License $ 324.9 $ 341.0 5.0%
Maintenance 509.8 508.6 (0.2)%
Professional services 69.5 62.2 (10.5)%
Total revenue 904.2 911.8 0.8%
Cost of license revenue 57.1 54.6 (4.4)%
Cost of maintenance revenue 87.1 74.0 (15.0)%
Cost of professional 71.5 65.0 (9.1)%
services revenue
Selling and marketing 277.1 256.5 (7.4)%
expenses
Research and development 115.5 95.4 (17.4)%
expenses
General and administrative 101.7 105.8 4.0%
expenses
Amortization of intangible 17.2 16.0 (7.0)%
assets
In-process research and 50.3 - (100.0)%
development
Severance, exit costs and 7.9 1.5 (81.0)%
related charges
Total operating expenses 785.4 668.8 (14.8)%
Operating income 118.8 243.0 104.5%
Other income (loss), net 11.3 (2.9) (125.7)%
Earnings before income 130.1 240.1 84.6%
taxes
Provision for income taxes 59.1 63.5 7.4%
Net earnings $ 71.0 $ 176.6 148.7%
Diluted earnings per share $ 0.37 0.94 154.1%
Shares used in computing 192.8 187.4 (2.8)%
diluted earnings per share
BMC SOFTWARE, INC.
BALANCE SHEETS
Unaudited Unaudited
June 30, September December March 31, June 30, September
30, 31, 30,
2008 2008 2008 2009 2009 2009
(In millions)
Current
assets:
Cash and cash $ 986.5 $ 810.3 $ 871.5 $ 1,023.3 $ 997.0 $ 1,137.8 (a)
equivalents
Short-term - 115.3 89.9 73.6 213.8 74.7 (a)
investments
Trade
accounts 162.6 180.7 212.0 217.8 134.6 174.6
receivable,
net
Trade finance
receivables, 82.7 90.8 85.9 99.3 62.5 85.3
net
Other current 181.1 145.6 117.3 146.5 149.4 148.2
assets
Total current 1,412.9 1,342.7 1,376.6 1,560.5 1,557.3 1,620.6
assets
Property and
equipment, 100.3 106.2 100.0 103.0 106.7 104.3
net
Software
development 111.2 112.0 121.9 122.6 120.8 135.5
costs
Long-term 87.0 83.6 78.0 72.3 74.3 76.3 (a)
investments
Long-term
trade finance 54.5 71.6 75.3 92.1 44.9 52.5
receivables,
net
Goodwill and
intangible 1,588.7 1,560.6 1,528.5 1,478.6 1,469.9 1,490.8
assets, net
Other
long-term 256.0 352.9 331.9 268.4 263.0 267.3
assets
Total assets $ 3,610.6 $ 3,629.6 $ 3,612.2 $ 3,697.5 $ 3,636.9 $ 3,747.3
Current
liabilities:
Trade
accounts $ 45.1 $ 47.3 $ 51.1 57.2 55.2 50.1
payable
Finance 9.1 15.8 9.4 13.7 8.0 13.9
payables
Accrued 247.1 336.8 333.2 285.1 201.9 236.2
liabilities
Deferred 975.0 927.5 929.1 977.3 968.0 934.1
revenue
Total current 1,276.3 1,327.4 1,322.8 1,333.3 1,233.1 1,234.3
liabilities
Long-term
deferred 846.5 834.8 801.7 810.6 759.8 762.5
revenue
Long-term 306.4 311.1 309.3 313.6 311.7 309.8
debt
Other
long-term 204.9 197.5 206.2 191.5 196.3 215.7
liabilities
Total
long-term 1,357.8 1,343.4 1,317.2 1,315.7 1,267.8 1,288.0
liabilities
Total
stockholders' 976.5 958.8 972.2 1,048.5 1,136.0 1,225.0
equity
Total
liabilities
and $ 3,610.6 $ 3,629.6 $ 3,612.2 $ 3,697.5 $ 3,636.9 $ 3,747.3
stockholders'
equity
(a) Total
cash and $ 1,073.5 $ 1,009.2 $ 1,039.4 $ 1,169.2 $ 1,285.1 $ 1,288.8
investments
BMC SOFTWARE, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Quarter Ended September 30, Six Months Ended September 30,
2008 2009 2008 2009
(In millions) (In millions)
Cash flows from
operating
activities:
$ 69.8 $ 94.2 Net earnings $ 71.0 $ 176.6
Adjustments to
reconcile net
earnings to net
cash provided by
operating
activities:
45.5 42.0 Depreciation and 90.3 84.8
amortization
Share-based
20.9 21.9 compensation 43.3 42.5
expense
- - In-process research 50.3 -
and development
1.5 (1.4 ) Other 0.3 (2.6 )
Changes in
operating assets
and liabilities,
net of
acquisitions:
(19.2 ) (30.4 ) Trade finance (11.2 ) 53.6
receivables
89.0 37.3 Accrued liabilities 1.3 (45.8 )
(59.1 ) (33.6 ) Deferred revenue (24.7 ) (93.7 )
Other operating
(73.1 ) (36.6 ) assets and 6.0 33.3
liabilities
Net cash provided
75.3 93.4 by operating 226.6 248.7
activities
Cash flows from
investing
activities:
Cash paid for
acquisitions, net
0.4 (24.7 ) of cash acquired, (783.7 ) (24.7 )
and other
investments
(120.0 ) (48.3 ) Purchases of (122.2 ) (221.7 )
investments
Proceeds from
6.0 193.4 maturities / sales 107.2 229.4
of investments
Purchases of
(8.5 ) (6.0 ) property and (16.8 ) (13.8 )
equipment
Capitalization of
(15.1 ) (27.6 ) software (26.8 ) (40.4 )
development costs
(0.1 ) - Other investing (0.2 ) -
activities
Net cash provided
(137.3 ) 86.8 by (used in) (842.5 ) (71.2 )
investing
activities
Cash flows from
financing
activities:
(3.4 ) (5.9 ) Payments on debt (6.0 ) (9.6 )
and capital leases
Proceeds from stock
12.1 29.9 options exercised 62.5 47.4
and other
Proceeds from
issuance of
- - long-term debt, net 295.6 -
of debt issuance
costs
Excess tax benefit
1.1 3.7 from share-based 21.0 5.4
compensation
(100.0 ) (75.0 ) Treasury stock (200.0 ) (125.0 )
acquired
Repurchases of
stock to satisfy
(0.3 ) (2.4 ) employee tax (16.1 ) (7.3 )
withholding
obligations
Net cash provided
(90.5 ) (49.7 ) by (used in) 157.0 (89.1 )
financing
activities
Effect of exchange
(23.7 ) 10.3 rate changes on (19.1 ) 26.1
cash and cash
equivalents
Net change in cash
(176.2 ) 140.8 and cash (478.0 ) 114.5
equivalents
Cash and cash
986.5 997.0 equivalents, 1,288.3 1,023.3
beginning of period
Cash and cash
$ 810.3 $ 1,137.8 equivalents, end of $ 810.3 $ 1,137.8
period
BMC SOFTWARE, INC.
Table of Reconciliation from GAAP Operating Expenses to Non-GAAP Operating
Expenses
(In millions)
(Unaudited)
Quarter Ended September 30, Six Months Ended September 30,
2008 2009 2008 2009
GAAP operating $ 361.2 $ 327.0 $ 785.4 $ 668.8
expenses
Severance, exit
costs and (1.5 ) (0.5 ) (7.9 ) (1.5 )
related charges
Amortization of
intangible (20.7 ) (18.0 ) (39.2 ) (36.0 )
assets
Share-based (20.9 ) (21.9 ) (43.3 ) (42.5 )
compensation
In-process
research and - - (50.3 ) -
development
Non-GAAP
operating $ 318.1 $ 286.6 $ 644.7 $ 588.8
expenses
BMC SOFTWARE, INC.
Table of Reconciliation from GAAP Operating Income to Non-GAAP Operating Income
(In millions)
(Unaudited)
Quarter Ended September 30, Six Months Ended September 30,
2008 2009 2008 2009
GAAP operating $ 105.5 $ 134.8 $ 118.8 $ 243.0
income
Severance, exit
costs and related 1.5 0.5 7.9 1.5
charges
Amortization of 20.7 18.0 39.2 36.0
intangible assets
Share-based 20.9 21.9 43.3 42.5
compensation
In-process research - - 50.3 -
and development
Non-GAAP operating $ 148.6 $ 175.2 $ 259.5 $ 323.0
income
BMC SOFTWARE, INC.
Table of Reconciliation from GAAP Operating Margin to Non-GAAP Operating Margin
(In millions)
(Unaudited)
Quarter
Quarter Ended Quarter Ended Ended
September 30, September 30, September
30,
2008 2009 2008 2009 2008 2009
GAAP GAAP GAAP
revenue: $ 466.7 $ 461.8 operating $ 105.5 $ 134.8 operating 23% 29%
income: margin:
Severance,
exit costs 1.5 0.5
and related
charges
Amortization
of 20.7 18.0
intangible
assets
Share-based 20.9 21.9
compensation
GAAP Non-GAAP Non-GAAP
revenue: $ 466.7 $ 461.8 operating $ 148.6 $ 175.2 operating 32% 38%
income: margin:
Six Months Six Months Six Months
Ended Ended Ended
September 30, September 30, September
30,
2008 2009 2008 2009 2008 2009
GAAP GAAP GAAP
revenue: $ 904.2 $ 911.8 operating $ 118.8 $ 243.0 operating 13% 27%
income: margin:
Severance,
exit costs 7.9 1.5
and related
charges
Amortization
of 39.2 36.0
intangible
assets
Share-based 43.3 42.5
compensation
In-process
research and 50.3 -
development
GAAP Non-GAAP Non-GAAP
revenue: $ 904.2 $ 911.8 operating $ 259.5 $ 323.0 operating 29% 35%
income: margin:
BMC SOFTWARE, INC.
Table of Reconciliation from GAAP Net Earnings to Non-GAAP Net Earnings
(In millions)
(Unaudited)
Quarter Ended September 30, Six Months Ended September 30,
2008 2009 2008 2009
GAAP net earnings $ 69.8 $ 94.2 $ 71.0 $ 176.6
Severance, exit
costs and related 1.5 0.5 7.9 1.5
charges
Amortization of 20.7 18.0 39.2 36.0
intangible assets
Share-based 20.9 21.9 43.3 42.5
compensation
In-process research - - 50.3 -
and development
Subtotal pretax 43.1 40.4 140.7 80.0
reconciling items
Tax effect of (5.3) (11.3) (21.7) (22.7)
reconciling items
Non-GAAP net $ 107.6 $ 123.3 $ 190.0 $ 233.9
earnings
BMC SOFTWARE, INC.
Table of Reconciliation from GAAP Earnings Per Share to Non-GAAP Earnings Per
Share
(Unaudited)
Quarter Ended September 30, Six Months Ended September 30,
2008 2009 2008 2009
GAAP diluted $ 0.36 $ 0.50 $ 0.37 $ 0.94
earnings per share
Severance, exit
costs and related 0.01 - 0.04 0.01
charges
Amortization of 0.11 0.10 0.20 0.19
intangible assets
Share-based 0.11 0.12 0.22 0.23
compensation
In-process research - - 0.26 -
and development
Subtotal pretax $ 0.22 $ 0.22 $ 0.73 $ 0.43
reconciling items
Tax effect of (0.03) (0.06) (0.11) (0.12)
reconciling items
Non-GAAP diluted net $ 0.56 $ 0.66 $ 0.99 $ 1.25
earnings per share
Shares used in
computing diluted 192.2 187.0 192.8 187.4
earnings per share
(in millions)
Source: BMC Software
Related Categories
Press ReleasesStocks Mentioned
-0.03Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
