BMC software reports strong Q3

Enterprise management software provider BMC Software has reported a 32% increase in net income to $111m for the third quarter 2010, compared to net income of $84m in the same quarter last year. Revenue increased 4% to $508m.

Operating income grew 28% to $134.8m, while diluted EPS rose 34% to $0.59. The company's total bookings were up 18% to $539m. It repurchased 2 million shares for $75m.

The company said license revenue increased 12% to $216m, maintenance revenue increased 2% to $260m, and professional services revenue declined 20% to $32m.

During the quarter, the company acquired IT discovery solutions provider Tideway Systems to enhance its Business Service Management (BSM) platform and help organizations minimize risks associated with business-critical initiatives such as data center consolidation, virtualization and compliance. It also formed an alliance with enterprise cloud computing company salesforce.com to deliver IT management solutions on the Force.com platform.

For the nine-month period, BMC Software reported an 86% increase in net income to $287m compared to net income of $155m in the previous year. Revenue increased 2% to $1.4 billion.

Steve Solcher, CFO at BMC Software, said: "During the quarter, we grew the bottom line while showing strength in bookings across both business units and solid performance across our two major geographies. Our ESM business delivered solid growth in license bookings, while MSM business capitalized on customer renewal opportunities and won new business. Our third quarter results position us well to achieve our fiscal 2010 financial goals across all key measures."

Looking ahead to fiscal 2010, the company expects non-GAAP EPS in the range of $2.64 to $2.72 and cash flow from operations between $600m and $650m.

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