EDS. With a market cap of $7 billion, business-software supplier BMC posted annual revenue of $1.73 billion for the year just ended. "In last 24 hours,
I have spoken with very senior executives for the largest tech companies in the world who view" H-P's buyout of the consultant and systems integrator as a move toward becoming "a more hostile, less friendly partner," as H-P creates a mirror image of IBM's ( IBM - Get Report) business model, Beauchamp said. The acquisition poses competitive threats to many EDS hardware and software suppliers, as well as other integrators who have not previously viewed H-P as a competitor. EDS has historically been a good customer of BMC, which sells software tools for mainframe computers, Beauchamp said. "They'll need to maintain that relationship with us or go to IBM. We'll do a good job of being a provider of mainframe tools" to EDS going forward, he added. Houston, Texas-based BMC reported revenue of $466.9 million, up 11.3% from $419.4 million for the same quarter of last year. Analysts were expecting a top line of $460.3 million, according to Thomson Reuters. Net income jumped 54.5% to $97 million, or 50 cents a share, vs. $62.8 million, or 30 cents a share, in the prior year.
Excluding special items, EPS was 63 cents. Analysts were looking for EPS of 51 cents. Shares were up $1.59, or 4.4%, to $38.02 in recent trading. But the company revised reported earnings for the prior three quarters, reducing reported EPS for the year just ended by 5 cents, excluding special items, and bringing full-year reported EPS to $2. The company "identified immaterial errors in its original calculation of the cumulative effect of adopting" new accounting rules, reducing retained earnings by $45.2 million during the fourth quarter to compensate for the cumulative effect of the rule change, the company stated. Excluding items, operating margin was 29%, up 8 percentage points year over year. Total deferred revenue at the end of the quarter was $1.78 billion, up 2.8% from $1.73 billion a year ago. Core software license bookings were up 16% year over year to $88 million, about $5 million below BMC's estimates, but still growing faster than the market, Beauchamp said. For fiscal 2009, BMC said EPS, excluding special items, would range from $2.10 and $2.20. Analysts were looking for a top line of $1.833 billion and EPS, less items, of $2.09. In the software sector, Intuit ( INTU - Get Report) will post earnings Tuesday, May 20. Salesforce.com ( CRM - Get Report) reports results Wednesday, May 21.