BMC Software Announces Financial Results for Third Quarter Fiscal 2001.Business Editors/High-Tech Writers HOUSTON--(BUSINESS WIRE)--Jan. 18, 2001 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 third quarter of fiscal 2001, ended Dec. 31, 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 third quarter were $385.5 million, a 10 percent decrease from $426.4 million in the same quarter of fiscal 2000 and a $62.5 million or 19 percent increase from the second quarter of fiscal 2001. 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. and including a $.02 one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain, decreased 44 percent to $58.8 million. Earnings per share on the same basis were $.24. Reflecting these charges and amortization of goodwill and intangible assets, net earnings and earnings per share were $21.9 million and $.09, respectively, in the third quarter of fiscal 2001 and were $69.2 million and $.27 per share in the third quarter of fiscal 2000. "I am very pleased with the progress that BMC Software made during the third quarter of fiscal 2001," said Bob Beauchamp Beauchamp is a surname that may refer to:
named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. , European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. , and Latin Lat·in n. 1. a. The Indo-European language of the ancient Latins and Romans and the most important cultural language of western Europe until the end of the 17th century. b. American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of markets." Total license revenues decreased 21 percent in the third quarter of fiscal 2001 compared to the third quarter of fiscal 2000, with North American license revenues decreasing 33 percent and International license revenues decreasing 5 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 revenues decreased 10 percent from the third quarter of fiscal 2000. Total license revenues for the company's mainframe mainframe Digital computer designed for high-speed data processing with heavy use of input/output units such as large-capacity disks and printers. They have been used for such applications as payroll computations, accounting, business transactions, information retrieval, business decreased 27 percent. Compared to the third quarter of fiscal 2000, maintenance revenues increased 7 percent and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. revenues increased 74 percent. Third Quarter Fiscal 2001 Highlights -- Completed the acquisition of the assets of Sylvain Faust Inc., adding depth to BMC Software's existing range of distributed data management offerings. -- Launched the Application-Centric Storage Management(TM) initiative, which allows customers to manage storage in a way that optimizes application availability, performance and recoverability. Through this initiative, BMC Software is the industry's first to add application intelligence to heterogeneous storage environments. Partnerships were formed with 15 leading hardware and software storage vendors. -- Formed alliance with EMC to develop a virtual tape solution for S/390 environments. The Virtual Tape and Management Solution will give customers the ability to "virtualize" tape, or provide the ability to seamlessly switch to disk and operate as if they are still using tape. -- Formed the Distributed Data Management business unit, which delivers the newly branded BMC Software DataOne(TM) solutions that include more than 30 distributed database products. -- Created a new Service Provider Solutions business unit designed to deliver BMC Software solutions to service provider partners on a subscription basis. -- Announced PATROL for Service Level Management (SLM), a solution that sets the standard for monitoring and managing service levels. Also announced the addition of BMC Software OnSite(TM) Elite, which is part of BMC Software's certification program and is the pinnacle achievement for companies delivering SLM through the implementation of a Service Assurance Center(R). -- Partnered with PricewaterhouseCoopers and Sun Microsystems to develop www.nextslm.org, an online service level management learning community. -- Announced Workload License Pricing and support for IBM's new e-server zSeries 900 hardware platforms and z/OS operating system. -- Announced an alliance with Siebel Systems and the plan to deliver PATROL(R) for Siebel eBusiness Applications. About BMC Software One of the world's largest independent software vendors, BMC Software delivers the most comprehensive ebusiness See 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 An application management suite from BMC that uses agents to report on software activities on all the servers within the enterprise. Using the information in "knowledge modules" (KMs) about each system component, agents detect events, collect information and notify system and network and other distributed systems products; 3) 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; 4) competition for BMC Software's products is intense and continues to increase for both the distributed systems and the mainframe database utility products; 5) certain platform vendors, including IBM and Microsoft See Microsoft and IBM. , have recently announced strategies to offer management tools for their particular platforms; 6) 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. ; 7) BMC Software continues to depend on large enterprise license transactions as an integral part of its core mainframe business; 8) the uncertainties of whether new software products and product strategies will be successful; 9) the ability to recruit RECRUIT. A newly made soldier. and retain qualified personnel; and 10) 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. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. today to discuss the third quarter fiscal 2001 results. Interested parties in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. may participate by calling 800/680-9685 with the passcode of "BMC Software." Those outside of the U.S. may call 334/260-0508 or 334/323-9854 with the passcode of "BMC Software." 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 Software Web site (http://www.bmc.com). For those unable to listen to the live broadcast, Internet replays will be available shortly after the call is completed 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) 2001 BMC Software Inc. All rights reserved.
BMC SOFTWARE INC. AND SUBSIDIARIES
STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended
December 31,
---------------------
Fiscal Fiscal %
2000 2001 Increase
-------- --------
(In millions, except
per share data)
Revenues:
License $288.3 $228.9 -21%
Maintenance 124.9 133.6 7%
Professional services 13.2 23.0 74%
-------- --------
Total revenues 426.4 385.5 -10%
Selling and marketing
expenses 139.5 154.4 11%
Research and
development expenses 54.6 56.6 4%
Cost of maintenance
services and product
licenses 43.7 54.6 25%
Cost of professional
services 19.1 24.0 26%
General and administrative
expenses 37.4 36.4 -3%
Acquired research
and development -- 0.4 n/a
Merger-related costs
and compensation charges 0.4 2.4 500%
Legal settlement 16.6 -- -100%
Amortization of goodwill,
acquired technology
& intangibles 36.2 46.7 29%
-------- --------
Operating income 78.9 10.0 -87%
Other income, net 10.7 20.6 93%
-------- --------
Earnings before
income taxes 89.6 30.6 -66%
Income taxes 20.4 8.7 -57%
-------- --------
Net earnings $69.2 $21.9 -68%
======== ========
Diluted earnings
per share $0.27 $0.09 -67%
======== ========
Shares used in
computing diluted
earnings per share 255.4 249.3 -2%
======== ========
BMC SOFTWARE INC. AND SUBSIDIARIES
STATEMENTS OF EARNINGS
(Unaudited)
Nine Months Ended
December 31,
---------------------
Fiscal Fiscal %
2000 2001 Increase
-------- --------
(In millions, except
per share data)
Revenues:
License $850.6 $632.5 -26%
Maintenance 355.8 388.6 9%
Professional services 36.4 60.1 65%
-------- --------
Total revenues 1,242.8 1,081.2 -13%
Selling and marketing
expenses 402.9 439.4 9%
Research and
development expenses 161.4 173.2 7%
Cost of maintenance
services and product
licenses 121.8 154.8 27%
Cost of professional
services 52.5 68.1 30%
General and administrative
expenses 101.4 112.9 11%
Acquired research
and development 80.8 18.1 -78%
Merger-related costs
and compensation charges 14.3 7.8 -45%
Legal settlement 55.4 -- -100%
Amortization of goodwill,
acquired technology
& intangibles 102.8 131.1 28%
-------- --------
Operating income (loss) 149.5 (24.2) -116%
Other income, net 31.4 52.4 67%
-------- --------
Earnings before
income taxes 180.9 28.2 -84%
Income taxes 36.4 8.8 -76%
-------- --------
Net earnings $144.5 $19.4 -87%
======== ========
Diluted earnings
per share $0.57 $0.08 -86%
======== ========
Shares used in
computing diluted
earnings per share 252.8 252.5 0%
======== ========
BMC SOFTWARE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2000 2000
-------- --------
(Unaudited)
(in millions)
Current Assets:
Cash and cash equivalents $152.4 $148.7
Investment securities 102.8 146.9
Trade receivables 532.2 458.8
Other current assets 108.8 114.8
-------- --------
Total current assets 896.2 869.2
Investment securities 820.3 726.4
Property and equipment 337.5 424.7
Goodwill and other intangibles 329.1 344.3
Other long-term assets 579.0 581.8
-------- --------
$2,962.1 $2,946.4
======== ========
Current liabilities:
Accounts payable, accrued
liabilities and other $214.3 $200.8
Current portion of
deferred revenue 406.6 433.9
Short-term borrowings 263.0 166.0
-------- --------
Total current liabilities 883.9 800.7
Deferred revenue 288.6 350.5
Other long-term liabilities 8.7 7.9
Total stockholders' equity 1,780.9 1,787.3
-------- --------
$2,962.1 $2,946.4
======== ========
BMC SOFTWARE INC. AND SUBSIDIARIES
SCHEDULE OF SPECIAL ITEMS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2000
(Unaudited)
(in millions, except per share data)
Special Items
-------------
Acquired Merger- Amorti-
Operations Research related zation of
(before and Costs and Goodwill
Special Develop- Compen- and Other Net, as
Items)(a) ment sation Intangibles Reported
---------- ---------- --------- ---------- ---------
Earnings
before
income
taxes $80.1 $(0.4) $(2.4) $(46.7) $30.6
Income
taxes (21.3) 0.1 -- 12.5 (8.7)
---------- ---------- --------- ---------- ---------
Net
earnings 58.8 (0.3) (2.4) (34.2) 21.9
========== ========== ========= ========== =========
Diluted
earnings
per share $0.24 $-- $(0.01) $(0.14) $0.09
========== ========== ========= ========== =========
(a) Includes a one-time $0.02 per share gain from a real estate
transaction.
BMC SOFTWARE INC. AND SUBSIDIARIES
SCHEDULE OF SPECIAL ITEMS
FOR THE NINE MONTHS ENDED DECEMBER 31, 2000
(Unaudited)
(in millions, except per share data)
Special Items
-------------
Acquired Merger- Amorti-
Operations Research related zation of
(before and Costs and Goodwill
Special Develop- Compen- and Other Net, as
Items)(a) ment sation Intangibles Reported
---------- ---------- --------- ---------- ---------
Earnings
before
Income
taxes $185.2 $(18.1) $(7.8) $(131.1) $28.2
Income
taxes (48.6) 3.6 -- 36.2 (8.8)
---------- ---------- --------- ---------- ---------
Net
earnings 136.6 (14.5) (7.8) (94.9) 19.4
========== ========== ========= ========== =========
Diluted
earnings
per share $0.54 $(0.06) $(0.03) $(0.37) $0.08
========== ========== ========= ========== =========
(a) Includes a one-time $0.02 per share gain from a real estate
transaction in the third quarter.
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