BMC Software Announces First Quarter Fiscal 2002 Financial Results.Business Editors & High-Tech high-tech also hi-tech adj. Informal Of, relating to, or resembling high technology. high-tech Adjective same as hi-tech Adj. 1. Writers HOUSTON--(BUSINESS WIRE)--July 23, 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. (NYSE NYSE See: New York Stock Exchange :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. ) today announced financial results for its first quarter of fiscal 2002, ended June June: see month. 30, 2001. BMC Software's revenues in the first quarter were $339.2 million, a 9 percent decrease from $372.7 million in the same 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. , decreased 67 percent to $16.6 million. Earnings per share for the quarter, excluding special charges and amortization of goodwill and intangible assets, were $0.07. Reflecting special charges and amortization of goodwill and intangible assets, net earnings and earnings per share were a loss of $34.5 million and a loss of $0.14, respectively, in the first quarter of fiscal 2002 and were $10.0 million and $0.04 per share in the first quarter of fiscal 2001. Total license revenues decreased 22 percent in the first quarter of fiscal 2002 compared to the first quarter of fiscal 2001, with North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. license revenues decreasing 28 percent and International license revenues decreasing 8 percent. Compared to the first quarter of fiscal 2001, maintenance revenues increased 11 percent to $139.3 million and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. revenues increased 15 percent to $19.9 million. "We are committed to executing our new business model and are implementing significant expense reduction initiatives that we expect to result in over $100 million in cost savings compared to our original fiscal year 2002 plan," said Bob Beauchamp Beauchamp is a surname that may refer to:
v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. our expense model with current market realities is necessary as we remain focused on improving profit margins." "In light of the challenging economic environment that our industry is facing, we are in the enviable en·vi·a·ble adj. So desirable as to arouse envy: "the enviable English quality of being able to be mute without unrest" Henry James. position of having a very strong balance sheet with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1 billion in cash and investment securities, strong cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , and no debt," said Beauchamp. First Quarter Fiscal 2002 Highlights -- Expanded its alliance with Oracle Corp. to leverage each company's technology to enable comprehensive, end-to-end systems management solutions to support e-business. The agreement includes Oracle's deployment of BMC Software's PATROL(R) products internally to complement its use of Oracle Enterprise Manager for measurement and management of Oracle's Global IT Operations. Also, as a part of the extended relationship, BMC Software announced support of the Oracle9i Database in its SQL management, space management and performance management solutions. -- Launched the industry's first network-aware application management solutions through its Application-Centric Network Management initiative. The initiative will allow customers to manage their enterprise network assets in a way that optimizes application availability and performance. -- Solidified its DB2 leadership position by delivering a new solutions model that addresses customers' DB2 management requirements. The solutions are designed with built-in intelligence to automate management actions based on the status of DB2 databases and applications. -- Reinforced its commitment to Application-Centric Storage Management(TM) (ACSM(TM)) by announcing MAINVIEW(R) Storage Resource Manager (MAINVIEW SRM), PATROL Application Storage Resource Manager(TM), and the formation of the ACSM Consortium partner program which allows members to widen their customer base, gain greater market exposure and increase revenue opportunities by leveraging their relationship with BMC Software's Recovery and Storage Management team. Initial Consortium members include Brocade Communications Systems Inc., Cisco Systems, EMC Corp. and Hitachi Data Systems, among others. -- Acquired the business of MicroCell Software Inc., a Dallas-based network solutions provider, that will extend BMC Software's Service Level Management (SLM) capabilities to include network performance and availability information. About BMC Software BMC Software Inc. (NYSE:BMC) is the leading provider of enterprise management solutions that assure business availability - maintaining and optimizing business-critical systems with automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. infrastructure management and unique service management capabilities. BMC Software is a member of the S&P 500, with fiscal year 2001 revenues exceeding $1.5 billion and offices worldwide. For more information, please visit BMC Software's Web site at www.bmc.com. Note to interested parties: BMC Software has scheduled a conference call for 5:00 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 2002 results. Interested parties may access the call by dialing 800/619-2383 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. or 712/257-3060 outside of the U.S. and using the passcode "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/investors). For those unable to listen to the live broadcast, Internet replays will be available shortly after the call is completed on www.bmc.com. 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) Weak economic conditions worldwide may continue to affect the overall demand for software and services which could result in decreased revenues or lower revenue growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. ; 2) 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; 3) 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 its other 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. products; 4) competition for BMC Software's products is intense and continues to increase for both the distributed systems and the 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, database utility products; 5) BMC Software continues to depend on large enterprise license transactions as an integral part of its core mainframe business; 6) growth in BMC Software's mainframe revenues is dependent on 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) new software products and product strategies may not be successful; and 8) the additional risks and important factors described in BMC Software'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, 2001 and other filings with the SEC. BMC Software undertakes no obligation to update information contained in this release. 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
June 30,
------------------
Fiscal Fiscal %
2001 2002 Increase
-------- --------
(In millions, except
per share data)
Revenues:
License $229.7 $180.0 -22%
Maintenance 125.7 139.3 11%
Professional services 17.3 19.9 15%
------- -------
Total revenues 372.7 339.2 -9%
Selling and marketing expenses 152.2 152.8 0%
Research and development expenses 106.6 113.0 6%
Cost of professional services 20.6 25.1 22%
General and administrative expenses 38.3 41.9 9%
Acquired research and development 11.7 -- -100%
Amortization of acquired
technology, goodwill & intangibles 39.6 48.2 22%
Severance and related expenses -- 12.0 --
Merger-related costs and
compensation charges 2.1 2.7 29%
------- -------
Operating income (loss) 1.6 (56.5) --
Other income, net 12.4 8.6 -31%
------- -------
Earnings (loss) before
income taxes 14.0 (47.9) -442%
Income taxes 4.0 (13.4) -435%
------- -------
Net earnings (loss) $10.0 $(34.5) -445%
======= --=====
Diluted earnings (loss)
per share $0.04 $(0.14) -450%
======= =======
Shares used in computing
diluted earnings (loss) per share 254.4 247.3 -3%
======= =======
BMC SOFTWARE INC. AND SUBSIDIARIES
SCHEDULE OF SPECIAL ITEMS
FOR THE THREE MONTHS ENDED JUNE 30, 2001
(Unaudited)
(in millions)
Special Items
-------------------------------------------
Merger-
Operations Amortization Severance related Loss on
(before of Goodwill and Costs Equity Net,
Special and Other Related and Invest- as
Items) Intangibles Expenses Compensation ment Reported
---------- ------------ --------- ------------ ------ --------
Earnings
(loss)
before
income
taxes $22.4 $(48.2) $(12.0) $(2.7) $(7.4) $(47.9)
Income
taxes (5.8) 12.4 4.2 -- 2.6 13.4
------ ------ ------ ------ ------ ------
Net
earnings
(loss) 16.6 (35.8) (7.8) (2.7) (4.8) (34.5)
====== ====== ====== ====== ====== ======
Diluted
earnings
(loss) per
share $0.07(a) $(0.15) $(0.03) $(0.01) $(0.02) $(0.14)(a)
====== ====== ====== ====== ====== ======
(a) Diluted earnings per share from operations is computed using 251.6
million diluted shares. Diluted net loss per share, as reported,
is computed using 247.3 million basic shares, as the incremental
shares from stock options, etc. are antidilutive.
BMC SOFTWARE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, June 30,
2001 2001
-------- --------
(Unaudited)
(in millions)
Current assets:
Cash and cash equivalents $146.0 $129.0
Investment securities 144.7 162.7
Trade receivables 506.1 411.2
Other current assets 105.9 142.3
-------- --------
Total current assets 902.7 845.2
Property and equipment 456.5 461.1
Investment securities 713.3 707.0
Goodwill and other intangibles 317.6 282.4
Other long-term assets 643.8 576.9
-------- --------
$3,033.9 $2,872.6
======== ========
Current liabilities:
Accounts payable and accrued liabilities $204.4 $176.2
Short-term borrowings 150.0 --
Current portion of deferred revenue 474.6 528.2
-------- --------
Total current liabilities 829.0 704.4
Deferred revenue 382.8 390.7
Other long-term liabilities 6.8 11.3
Total stockholders' equity 1,815.3 1,766.2
-------- --------
$3,033.9 $2,872.6
======== ========
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