Sluggish 4Q for BMC - Analyst Blog
11 Maggio 2012 - 11:00AM
Zacks
BMC Software Inc.
(BMC) reported fourth quarter 2012 earnings per share of 59 cents,
lagging the Zacks Consensus Estimate of 66 cents.
Revenue
Total revenue in the reported
quarter was $564.7 million, up 0.4% year over year. The company
witnessed indifferent results across different revenue segments.
The SaaS business performed well across its different business
segments. This is best measured on the basis of recurring revenue
and also on the basis of total bookings.At the end of the quarter,
SaaS MRR totaled $1.7 million, up 350% year over year, while total
bookings for the year grew almost 250% to $26 million.
License revenue in the fourth
quarter was $233.6 million, down 6.8% year over year. ESM license
revenue was $145 million, down 8.0%, while MSM license revenue came
in at $89.0 million, down 5.0% year over year.
Maintenance revenue during the
fourth quarter was $273.0 million, up 5.6% year over year.
Professional services revenue in the quarter was $58.1 million, up
9.6% year over year.
Bookings
Total cloud bookings for fiscal
2012 were approximately $100 million, with cloud-related license
bookings increasing 70.0% on a year-over-year basis in fiscal 2012.
SaaS bookings skyrocketed 250.0% with over 200 customers added
during fiscal 2012. MSM bookings for fiscal 2012 rose 6.0% year
over year
Operating
Results
Operating income on a GAAP basis
was $106.0 million, down 25.2% from $141.8 million in the year-ago
quarter. Excluding special items such as severance costs and
amortization of intangible assets but including stock-based
compensation expense, non-GAAP operating income was $419.2 million
in the reported quarter, up 6.0% from $395.4 million in the
prior-year quarter.
Net income on a GAAP basis was
$70.7 million compared with $122.5 million in the year-ago quarter.
Excluding special items such as amortization and severance costs
but including stock-based compensation expense, non-GAAP net income
was 59 cents per share compared with 75 cents in the year-ago
quarter.
Balance Sheet, Cash Flow
& Share Repurchase
BMC Software generated $212.9
million in cash flow from operations in the reported quarter versus
$164.3 million in the previous quarter. The company exited the
quarter with cash and investments of $1.58 billion, down from $1.36
billion in the prior quarter.
During the reported quarter, BMC
repurchased 4.1 million shares for a total cost of $150.0 million.
At the end of the quarter, BMC had $850.0 million remaining under
its current share repurchase program.
Guidance
For fiscal 2013, the company
expects non-GAAP diluted earnings per share in the range of $3.49
to $3.59 per share. BMC expects fiscal 2013 cash flow from
operations to be between $800.0 million and $850.0 million, which
at the midpoint represent a 3 percent improvement over fiscal
2012.
Our Take
BMC Software is one of the leading
software vendors and providers of system and service management
solutions across the globe. BMC reported sluggish fourth quarter
results but guidance was modest for fiscal 2013. However, the
company witnessed substantial cloud bookings.
The company witnessed growth in
most of its business segments and generated decent cash flow.
However, we are a bit apprehensive about the bleak business
conditions in Europe. This apart, growing competition from big
players such as International Business Machines
Inc. (IBM), Hewlett-Packard Company
(HPQ), EMC Corp. (EMC) and CA
Inc. (CA), will pose challenges to the company.
The company carries a Zacks #3
Rank, implying a short-term Hold rating.
BMC SOFTWARE (BMC): Free Stock Analysis Report
CA INC (CA): Free Stock Analysis Report
EMC CORP -MASS (EMC): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
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