BMC Software Announces Financial Results for First Quarter Fiscal Year 2001.Business Editors/High-Tech Writers HOUSTON--(BUSINESS WIRE)--July 25, 2000 BMC Software BMC Software, Inc. NYSE: BMC, is an American enterprise management software provider, focusing on IT infrastructure applications. BMC was founded in 1980 and is headquartered in Houston, Texas. Inc. (Nasdaq:BMCS BMCS Bristol Muslim Cultural Society (UK) BMCS Senior Chief Boatswain's Mate (Naval Rating) BMCS Blue Mountains Conservation Society (Wentworth Falls, NSW, Australia) ) today announced financial results for its first quarter of fiscal 2001, ended June June: see month. 30, 2000. BMC (BMC Software, Inc., Houston, TX, www.bmc.com) A leading supplier of software that supports and improves the availability, performance, and recovery of applications in complex computing environments. Software's revenues in the first quarter were $372.7 million, a 7 percent decrease from $400.7 million in the same quarter of fiscal 2000. Net earnings, excluding special charges and amortization of goodwill and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , decreased 53 percent to $49.9 million. Earnings per share on the same basis decreased 52 percent to $.20. Reflecting these charges, net earnings and earnings per share were $10.0 million and $.04 in the first quarter of fiscal year 2001 and were $16.4 million and $.07 per share in the first quarter of fiscal 2000. "The first quarter of our fiscal 2001 presented the company with many unforeseeable Un`fore`see´a`ble a. 1. Incapable of being foreseen. Adj. 1. unforeseeable - incapable of being anticipated; "unforeseeable consequences" unpredictable - not capable of being foretold market factors that negatively impacted us and all other independent software vendors with significant mainframe business," said Max Watson, chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of BMC Software. "Nevertheless, BMC Software remains a profitable company focused on solving complex customer problems with industry leading solutions. We are also fortunate to have the best employees in the industry and a very strong balance sheet. We remain focused on taking the necessary steps to ensure we earn the confidence that our customers, shareholders and employees have shown us throughout our 20-year history." Total license revenues declined 18 percent in the first quarter of fiscal 2001 from the first quarter of fiscal 2000, with North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. license revenues declining 23 percent and International license revenues declining 5 percent. Compared to the first quarter of fiscal 2000, maintenance revenues increased 12 percent and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. revenues increased 94 percent. Total distributed systems Distributed systems (computers) A distributed system consists of a collection of autonomous computers linked by a computer network and equipped with distributed system software. license and maintenance revenues increased 8 percent over the first quarter of fiscal 2000. Total license and maintenance revenues for the company's mainframe business decreased 16 percent, including an 18 percent decline in the core mainframe IMS (1) See IP Multimedia Subsystem. (2) (Information Management System) An early IBM hierarchical DBMS for IBM mainframes. IMS was widely implemented throughout the 1970s under MVS and continues to be used under z/OS. and DB2 database tools. First Quarter FY 2001 Highlights -- Acquired Evity Inc. -- allowing BMC to provide Web-transaction monitoring from outside the firewall via the SiteAngel(TM) technology as well as inside the firewall via PATROL(R). -- Announced intent to acquire OptiSystems -- which will give BMC the most comprehensive management solution for the transactional backbones for e-business (Electronic-BUSINESS) Doing business online. The term is often used synonymously with e-commerce, but e-business is more of an umbrella term for having a presence on the Web. (SAP sap, fluid in plants consisting of water and dissolved substances. Cell sap refers to this fluid present in the large vacuole, or cell cavity, that occupies most of the central portion of mature plant cells. R/3 and mySAP.com SAP's brand name for its Internet strategy in the late 1990s as well as a name for its business suite. SAP later changed the mySAP.com business suite to mySAP Business Suite. See mySAP. ). -- Launched PATROL 2000 -- the combination of industry-leading PATROL, COMMAND/POST and BEST/1 products into a single solution that, through a unique continuous improvement process, enables the rapid deployment of advanced service level management. -- Brought to market Web DBA -- the company's first Web-based interactive database solution that requires only a standard Internet browser See Web browser. to address the day-to-day day-to-day adj. 1. Occurring on a routine or daily basis: the day-to-day movements of the stock market. 2. database management tasks faced by today's database administrators (DBA) and developers. -- Announced the company's first solutions for managing Storage Area Networks (SANs). -- Unveiled industry's first guaranteed implementation program -- which accelerates a customer's time-to-value through fixed costs and mutually agreed timeframes, thereby shortening the time it takes to utilize technology for business advantage. -- Introduced industry's first systems management solution on Linux Linux Nonproprietary operating system (OS) for digital computers. In 1991 Linus Torvalds of Finland began asking for volunteer programmers over the Internet to collaborate on the development of a UNIX-like OS for personal computers; the “1. for OS/390. About BMC Software One of the world's largest independent software vendors, BMC Software delivers the most comprehensive e-business systems management software with the fastest guaranteed implementation. This Service Assurance(TM) strategy enhances the availability, performance and recoverability of companies' business-critical applications. Companies can use this management methodology to demonstrate their ability to deliver optimal service to their customers and partners by joining BMC Software OnSite(TM), a certification program which includes solution implementation and regular HealthChecks performed by BMC Software Professional Services. BMC Software is a Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes 500 company and a member of the S&P 500, with fiscal 2000 revenues exceeding $1.7 billion. The company is headquartered in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , with offices worldwide. For more information please visit BMC Software's Web site at www.bmc.com, or call 800/841-2031 or 713/918-8800. This news release contains both historical information and forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information. Statements of plans, objectives, strategies and expectations for future operations and results, identified by words such as "believe," "anticipate" and "expect" are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Numerous important factors affect BMC Software's operating results and could cause BMC Software's actual results to differ materially from the results 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) BMC Software's revenues and earnings are subject to a number of factors, including the significant percentage of quarterly sales typically closed at the end of each quarter, that make estimation estimation In mathematics, use of a function or formula to derive a solution or make a prediction. Unlike approximation, it has precise connotations. In statistics, for example, it connotes the careful selection and testing of a function called an estimator. of operating results prior to the end of a quarter extremely uncertain; 2) BMC Software's financial growth depends on the continued success of PATROL and other distributed systems products; 3) competition for BMC Software's products is at an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high and continues to increase for both the distributed systems and the mainframe database utility products; 4) international results have been and remain volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. ; 5) BMC Software continues to depend on large enterprise license transactions as an integral part of its core mainframe business; 6) continued demand for significant additional mainframe MIPS (Million Instructions Per Second) The execution speed of a computer. For example, .5 MIPS is 500,000 instructions per second; 100 MIPS is a hundred million instructions per second. capacity; 7) the uncertainties of whether new software products and product strategies will be successful; 8) the ability to recruit and retain qualified personnel; and 9) the additional risks and important factors described in the company's quarterly reports on Form 10-Q Form 10-Q See 10-Q. and in its Annual Report to Stockholders on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended March 31, 2000 and other filings with the SEC. Note to interested parties: BMC Software has scheduled a conference call for 4:00 p.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT today to discuss the first quarter fiscal year 2001 results. Interested parties may participate by calling 847/413-3237. Investors will also have the opportunity to listen to the conference call and view a financial presentation over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the through the investor relations Investor relations The process by which the corporation communicates with its investors. section of the BMC website (http://www.bmc.com). For those unable to listen to the live broadcast, Internet replays will be available shortly after the call on www.bmc.com. BMC Software, BMC Software OnSite, the BMC Software logos, and all other BMC Software product or service names are registered trademarks or trademarks of BMC Software Inc. All other trademarks or registered trademarks belong to their respective companies. (c) 2000 BMC Software Inc. All rights reserved.
BMC SOFTWARE INC. AND SUBSIDIARIES
STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended
June 30,
---------------------
Fiscal Fiscal %
2000 2001 Increase
------ ------
(In millions, except
per share data)
Revenues:
Licenses $279.8 $229.7 -18%
Maintenance 112.0 125.7 12%
Professional
services 8.9 17.3 94%
------ ------
Total revenues 400.7 372.7 -7%
Selling and
marketing expenses 127.0 152.2 20%
Research and
development expenses 57.5 57.5 0%
Cost of maintenance
services and product
licenses 37.2 49.1 32%
Cost of professional
services 13.4 20.6 54%
General and
administrative
expenses 34.3 38.3 12%
Acquired research
and development 80.8 11.7 -86%
Merger-related costs
and compensation
charges 12.5 2.1 -83%
Amortization of
goodwill, acquired
technology &
intangibles 30.3 39.6 31%
------ ------
Operating income 7.7 1.6 -79%
Other income, net 10.9 12.4 14%
------ ------
Earnings before
income taxes 18.6 14.0 -25%
Income taxes 2.2 4.0 82%
Net earnings $16.4 $10.0 -39%
====== ======
Diluted earnings
per share $0.07 $0.04 -43%
====== ======
Shares used in
computing diluted
earnings per share 249.8 254.4 2%
====== ======
BMC SOFTWARE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, June 30,
2000 2000
--------- --------
(Unaudited)
(in millions)
Current Assets:
Cash and cash equivalents $152.4 $139.7
Investment securities 102.8 112.7
Trade receivables 532.2 414.2
Other current assets 108.8 95.1
-------- --------
Total current assets 896.2 761.7
Investment securities 820.3 890.6
Property and equipment 337.5 371.0
Goodwill and other intangibles 329.1 352.0
Other long-term assets 579.0 550.7
-------- --------
$2,962.1 $2,926.0
======== ========
Current liabilities:
Accounts payable, accrued
liabilities and other $214.3 $169.4
Current portion of
deferred revenue 406.6 427.4
Short-term borrowings 263.0 160.0
-------- --------
Total current liabilities 883.9 756.8
Deferred revenue and other 297.3 330.0
Total stockholders' equity 1,780.9 1,839.2
-------- --------
$2,962.1 $2,926.0
======== ========
BMC SOFTWARE INC. AND SUBSIDIARIES
SCHEDULE OF SPECIAL ITEMS
FOR THE THREE MONTHS ENDED JUNE 30, 2000
(Unaudited)
(in millions)
Special Items
------------------------------------
Acquired Merger- Amortization
Operations Research related of Goodwill Net,
(before and Costs and and Other as
Special items) Develop- Compensation Intangibles Reported
ment
------------- ---------- ------------ ----------- --------
Earnings
before
income
taxes $67.4 $(11.7) $(2.1) $(39.6) $14.0
Income
taxes (17.5) 1.7 -- 11.8 (4.0)
------------- ---------- ---------- ----------- -------
Net
earnings 49.9 (10.0) (2.1) (27.8) 10.0
============= ========== ========== =========== ========
Diluted
earnings
per
share $0.20 $(0.04) $(0.01) $(0.11) $0.04
============= ========== ========== =========== =======
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