BMC Software Results Miss Estimates

(RTTNews) - BMC Software Inc. (BMC), which has agreed to be taken private in a $6.9 billion deal, said Monday after the markets closed that its first quarter profit fell 3% from last year, as revenue declined 4.1%.

The company's quarterly earnings per share, excluding items, also came in below analysts' expectations as did its quarterly revenue.

The Houston, Texas-based company reported net income for the first quarter of $52.5 million or $0.36 per share, compared to $54.1 million or $0.33 per share in the prior-year quarter.

Excluding items, adjusted net income for the first quarter was $111.5 million or $0.77 per share, compared to $105.9 million or $0.65 per share in the year-ago quarter.

On average, 10 analysts polled by Thomson Reuters expected the company to earn $0.79 per share for the first quarter. Analysts' estimates typically exclude special items.

Revenues for the first quarter fell 4.1% to $483.6 million from $504.4 million in the same quarter last year, and missed nine Wall Street analysts' consensus estimate of $527.63 million.

License revenues slipped 17.8% to $141.0 million, while maintenance revenues grew 3.8% to $289.3 million. Professional services revenue decreased 1.3% to $53.3 million.

Total company bookings for the quarter grew 6% from a year ago.

In May, BMC Software agreed to be taken private by a consortium led by private equity firms Bain Capital LLC and Golden Gate Capital for $46.25 per share in cash or about $6.9 billion. The group also includes Government of Singapore Investment Corp. Pvt. Ltd. and Insight Venture Partners. The deal is expected to close later in 2013.

The sale ends a sustained campaign by activist hedge fund Elliott Management to force BMC into a sale, citing under-performance and loss of shareholder value.

BMC Software shares, which have traded in a 52-week range of $38.04 to $47.98 over the past year, closed Monday's regular trading session at $45.99, down a penny, and lost an additional 4 cents in after hours trading.