BMC Software revenue at $1.73bn

BMC Software (NYSE: BMC) today announced that Company revenue reached an all-time historical high of $1.73 billion in fiscal 2008. In addition, the Company reported an 11 percent increase in total revenue for the fourth quarter, driven by significantly higher license revenue growth of 14 percent. Core BSM license bookings totaled $88 million, a key leading indicator of customer adoption and future revenue growth for BMC’s Business Service Management offerings in the fourth quarter of fiscal 2008, up 16 percent over the year-ago quarter.

BMC’s fiscal 2008 fourth quarter net earnings on a GAAP basis were $97 million, or $0.50 per diluted share, compared to $63 million and $0.30 per diluted share in the year-ago quarter. The Company’s non-GAAP net earnings for the fiscal fourth quarter, which excludes special items, were $123 million, or $0.63 per diluted share, representing a 47 percent increase over the year-ago quarter. This includes a non-GAAP effective tax rate for the quarter of 21 percent. The Company also posted record annual non-GAAP earnings per share of $2.00.

“BMC Software continues to make powerful strides in every area of our business,” said Bob Beauchamp, BMC’s president and chief executive officer. “We’re building strategic relationships with more and more customers as our sales teams convert mindshare to market share. BMC is out innovating our competitors, and our company is executing more effectively and efficiently than ever before. Business Service Management has gone mainstream, even as BMC has extended our leadership in this rapidly growing space.”

Included in the financial tables is a complete reconciliation between non-GAAP and GAAP results.

In addition, the Company posted the following key results:

• Total revenue for the fourth quarter of fiscal 2008 was $467 million, up 11% over the prior year.

• Total revenue for the year posted at $1.73 billion, a 10 percent increase over the previous year.

• GAAP operating margin for the year was 21 percent compared to 13 percent in the prior year.

• Non-GAAP operating margin for the year increased from 22 percent in the prior year to 28 percent in fiscal 2008.

• Cash flow from operations for the year was $594 million, up 41% and the highest level in the past five years.

• The Company continues to maintain a strong balance sheet, ending the fiscal fourth quarter with a record $555 million in deferred license revenue, up 3 percent sequentially.

• The Company ended fiscal 2008 with $1.78 billion in total deferred revenue and $1.48 billion in cash and marketable securities.

Beauchamp added: “BMC’s record of bookings growth attests to the strength of the market for our solutions. This strong customer acceptance of BMC’s Business Service Management platform, as well as the enthusiasm for our leadership in Service Automation, will continue to drive our performance. None of our competitors are even close to delivering this complete suite of solutions built on a unified architecture, and we see that competitive gap widening further as we fully integrate BladeLogic and prepare to launch the next generation of BSM.”

During the fourth fiscal quarter, the Company continued its stock buy-back program, spending $110 million to re-purchase 3.3 million shares. As of March 31, 2008, the Company has $675 million remaining under the existing share repurchase program.

Steve Solcher, BMC’s chief financial officer, said: “Last year at this time, I said that BMC’s focus in fiscal 2008 would be to create a more agile, efficient and profitable company that moved quicker, exerted greater competitive power, and created significant value for shareholders. Today, it’s very clear that BMC has attained all of those goals. The company has generated improvements in just about every key metric, ranging from bookings to revenues to non-GAAP operating margin to cash flow from operations. We continue to tightly control expenses, an effort that will continue as we further enhance our key business processes and realign our people and assets to meet the requirements of the marketplace. We’re looking forward to seeing further improvements in our performance during fiscal 2009.”

Sourced From: Ogilvy Public Relations Worldwide