BMC Software Exceeds Expectations With Fourth Quarter Fiscal 2001 Results; Strong Quarter to Quarter Growth Across All Geographies.Business Editors/High-Tech Writers HOUSTON--(BUSINESS WIRE)--April 24, 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. ), the leading provider of enterprise systems management, today announced financial results for its fourth quarter of fiscal 2001, ended March 31, 2001. Total revenues for the fourth quarter of fiscal 2001 were $422.8 million, a 10 percent increase compared to the third quarter of fiscal 2001 and an 11 percent decrease from the same quarter of fiscal 2000. In the fourth quarter, diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , excluding special charges and amortization of goodwill and intangibles Property that is a "right" such as a patent, Copyright, or trademark, or one that is lacking physical existence, such as good will. , were $.26, an 18 percent increase compared to the third quarter of fiscal 2001, and a 47 percent decrease from the prior year's fourth quarter. These revenue and earnings per share results exceed the guidance provided by the Company in January January: see month. 2001. Net earnings, excluding special charges and amortization of goodwill and intangibles, were $65.8 million, a 20 percent increase compared to the third quarter of fiscal 2001, and a 47 percent decrease from the prior year's fourth quarter. Net earnings and diluted earnings per share reflecting these charges and benefits were $23.0 million and $.09 for the fourth quarter of fiscal 2001, as compared to $98.0 million and $.39 for the fourth quarter of fiscal 2000, respectively. Total revenues in fiscal 2001 were $1,504.0 million, a 13 percent decrease from total revenues of $1,719.2 million in fiscal 2000. Fiscal 2001 net earnings and diluted earnings per share, excluding special charges and amortization of goodwill and intangibles and a third quarter real estate gain, were $198.3 million and $.79, respectively. This represented a decline of 55 percent, compared to earnings and diluted earnings per share in fiscal 2000 of $444.6 million and $1.76, excluding special charges and amortization of goodwill and intangibles. Net earnings and diluted earnings per share reflecting these charges and benefits were $42.4 million and $.17 for fiscal 2001, as compared to $242.5 million and $.96 in fiscal 2000. "I am pleased that our significant progress continued into the fourth quarter," said Bob Beauchamp Beauchamp is a surname that may refer to:
geographic pertaining to geography. region with broad strength across our product lines. During the fourth quarter, we added $34 million in license revenue to our deferred revenues, as we continue to seek to build a more predictable revenue stream and provide customers with more flexibility for their changing buying patterns. Our strong recovery in the second half of fiscal 2001 provides good momentum as we enter our new fiscal year." Total license revenues increased 13 percent compared to the third quarter of fiscal 2001 and decreased 21 percent in the fourth quarter of fiscal 2001 compared to the fourth quarter of fiscal 2000. 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 increased 26 percent compared to the third quarter of fiscal 2001 and decreased 19 percent compared to the fourth quarter of fiscal 2000. Total 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, license revenues increased 4 percent compared to the third quarter of fiscal 2001 and decreased 23 percent compared to the fourth quarter of fiscal 2000. Maintenance revenues increased 1 percent compared to the third quarter of fiscal 2001 and increased 4 percent compared to the fourth quarter of fiscal 2000. Professional Services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. revenues increased 20 percent compared to the third quarter of fiscal 2001 and increased 63 percent compared to the fourth quarter of fiscal 2000. Fourth Quarter Fiscal 2001 Highlights -- Acquired Perform, SA, a French Web-based network optimization software developer, which will extend BMC Software's market leading ability to provide true end-to-end Service Level Management from an application services perspective. -- Reinforced commitment to Application-Centric Storage Management(TM) (ACSM) initiative by forming the Professional Services Storage Practice. Through this industry-leading strategic practice group, current and potential BMC Software customers can now have all their storage needs -- from solution development to product implementation -- addressed through one vendor. -- Announced a component of the ACSM initiative, PATROL(R) Storage Network Manager, which is a comprehensive storage network management tool that provides a single, integrated point of control for monitoring, management, control and automation of storage elements across an enterprise. -- Collaborated with Microsoft Corporation to provide recovery capabilities to BMC Software's existing solution for Microsoft's SQL Server 2000 and enhancements to BMC Software's SQL Server database recovery offering by providing advanced transaction-level analysis and recovery. -- Announced the new PATROL for Sun(TM) Automated Dynamic Reconfiguration (ADR) solution designed to proactively manage domain resources for the Sun Enterprise(TM) 10000 server. -- Announced PATROL for Ariba Buyer, which allows customers to manage their complex ebusiness infrastructure from a single point of control. -- Announced the opening of its Asia Pacific R&D, Distribution & Production Center in Singapore. The new facility will provide customers with quicker turnaround time on all product deliveries, local Asian production of new products and reduced time-to-market. -- Moved the trading of its common stock from the Nasdaq to the New York Stock Exchange (NYSE) under the ticker symbol "BMC". About BMC Software BMC Software, Inc. (NYSE:BMC), is the leading provider of enterprise systems 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 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 year 2001 revenues exceeding $1.5 billion and offices worldwide. For more information, please visit BMC Software's Web site at 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) the effects of workforce reductions, including possible organizational disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. , on BMC Software and its future earnings cannot be predicted; 2) a weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. of economic factors, particularly 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. economy, may affect the overall demand for software
and services which could result in decreased revenues or lower revenue
growth rates Growth RatesThe 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. ; 3) BMC Software's financial growth depends on the continued success and acceptance of its existing and new software products; 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) 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; and 6) 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, 2000 and other filings with the SEC. BMC Software undertakes no obligation to update information contained in this release. 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 fourth quarter and fiscal 2001 results. Interested parties in the United States may participate by calling 800/680-9685 with the passcode of "BMC Software." Those outside of the U.S. may call 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
March 31,
------------------
Fiscal Fiscal %
2000 2001 Increase
------ ------
(In millions, except
per share data)
Revenues:
License $329.6 $259.7 -21%
Maintenance 129.9 135.5 4%
Professional services 16.9 27.6 63%
------ ------
Total revenues 476.4 422.8 -11%
Selling and marketing expenses 156.8 161.3 3%
Research and development expenses 51.8 60.5 17%
Cost of maintenance services and
product licenses 55.4 53.1 -4%
Cost of professional services 21.6 27.4 27%
General and administrative expenses 33.7 47.5 41%
Acquired research and development -- 3.3 n/a
Merger-related costs and
compensation charges (0.2) 0.8 -500%
Severance expenses -- 6.1 n/a
Amortization of goodwill, acquired
technology & intangibles 36.3 47.1 30%
------ ------
Operating income 121.0 15.7 -87%
Other income, net 9.5 16.5 74%
------ ------
Earnings before income taxes 130.5 32.2 -75%
Income taxes 32.5 9.2 -72%
------ ------
Net earnings $98.0 $23.0 -77%
====== ======
Diluted earnings per share $0.39 $0.09 -77%
====== ======
Shares used in computing diluted
earnings per share 253.8 251.6 -1%
====== ======
BMC SOFTWARE INC. AND SUBSIDIARIES
STATEMENTS OF EARNINGS
(Unaudited)
Year Ended
March 31,
----------------------
Fiscal Fiscal %
2000 2001 Increase
-------- --------
(In millions, except
per share data)
Revenues:
License $1,180.2 $892.2 -24%
Maintenance 485.7 524.1 8%
Professional services 53.3 87.7 65%
-------- -------
Total revenues 1,719.2 1,504.0 -13%
Selling and marketing
expenses 559.7 600.7 7%
Research and development
expenses 213.2 233.7 10%
Cost of maintenance
services and product
licenses 177.2 207.9 17%
Cost of professional
services 74.1 95.5 29%
General and
administrative expenses 135.1 160.4 19%
Acquired research and
development 80.8 21.4 -74%
Merger-related costs and
compensation charges 14.1 8.6 -39%
Legal settlement 55.4 -- -100%
Severance expenses -- 6.1 n/a
Amortization of goodwill,
acquired technology
& intangibles 139.1 178.2 28%
-------- -------
Operating income 270.5 (8.5) -103%
Other income, net 40.9 68.9 68%
-------- -------
Earnings before
income taxes 311.4 60.4 -81%
Income taxes 68.9 18.0 -74%
-------- -------
Net earnings $242.5 $42.4 -83%
======== =======
Diluted earnings
per share $0.96 $0.17 -82%
======== =======
Shares used in computing
diluted earnings
per share 253.0 252.5 0%
======== =======
BMC SOFTWARE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, March 31,
2000 2001
-------- --------
(Unaudited)
(in millions)
Current Assets:
Cash and cash equivalents $152.4 $146.0
Investment securities 102.8 144.7
Trade receivables 532.2 506.1
Other current assets 108.8 149.2
-------- --------
Total current assets 896.2 946.0
Investment securities 820.3 713.3
Property and equipment 337.5 456.5
Goodwill and other intangibles 329.1 317.6
Other long-term assets 579.0 584.2
-------- --------
$2,962.1 $3,017.6
======== ========
Current liabilities:
Accounts payable, accrued liabilities and
other $214.3 $188.7
Current portion of deferred revenue 406.6 474.6
Short-term borrowings 263.0 150.0
-------- --------
Total current liabilities 883.9 813.3
Deferred revenue 288.6 382.8
Other long-term liabilities 8.7 6.2
Total stockholders' equity 1,780.9 1,815.3
-------- --------
$2,962.1 $3,017.6
======== ========
BMC SOFTWARE INC. AND SUBSIDIARIES
SCHEDULE OF SPECIAL ITEMS
FOR THE THREE MONTHS ENDED MARCH 31, 2001
(Unaudited)
(in millions)
Special Items
--------------------------------------------------
Acquired Merger- Amortization
Operations Research related of Goodwill
(before and Costs and and Net,
Special Develop- Compen- Severance Other as
items) ment sation Expenses Intangibles Reported
---------- -------- --------- --------- ----------- --------
Earnings
before
income
taxes $89.5 $(3.3) $(0.8) $(6.1) $(47.1) $32.2
Income
taxes (23.7) -- -- 2.1 12.4 (9.2)
------- ------- ------- -------- -------- -------
Net
earnings 65.8 (3.3) (0.8) (4.0) (34.7) 23.0
======= ======= ======= ======== ======== =======
Diluted
earnings
per share $0.26 $(0.01) $(0.00) $(0.02) $(0.14) $0.09
======= ======= ======= ======== ======== =======
BMC SOFTWARE INC. AND SUBSIDIARIES
SCHEDULE OF SPECIAL ITEMS
FOR THE YEAR ENDED MARCH 31, 2001
(Unaudited)
(in millions)
Special Items
------------------------------------------
Amort-
ization
of
Operat- Merger- Good- Gain
ions Acquired related will from
(before Research Costs Sever- and Real Net,
Special and and ance Other Estate as
items) Develop- Compen- Ex- Intan- Trans- Re-
(a) ment sation penses gibles action ported
------- -------- ------- ------ ------- ------ ------
Earnings
before
Income
taxes $268.4 $(21.4) $(8.6) $(6.1) $(178.2) $6.3 $60.4
Income
taxes (70.1) 3.6 -- 2.1 48.6 (2.2) (18.0)
------- -------- ------- ------ ------- ------ ------
Net
earnings 198.3 (17.8) (8.6) (4.0) (129.6) 4.1 42.4
======= ======== ======= ====== ======= ====== ======
Diluted
earnings
per
share $0.79 $(0.07) $(0.03) $(0.02) $(0.52) $0.02 $0.17
======= ======== ======= ====== ======= ====== ======
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