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BMC Beats Street, Raises 2010 Guidance

Software maker BMC beats Wall Street's first-quarter sales and profit estimates.

HOUSTON --

BMC Software

(MSFT) - Get Report

enjoyed a first-quarter profit boost, beating Wall Street estimates in spite of a tough economy.

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The company earned 44 cents a share on net income of $82 million, up from 1 cent a share and $1 million in the same period last year. Last year's numbers, however, were impacted by a $50 million R&D writedown associated with BMC's acquisition of

BladeLogic

.

Excluding charges, BMC earned 59 cents a share on net income of $111 million, compared to 43 cents a share and $82 million in the prior year's quarter. Analysts surveyed by Thomson Reuters had expected earnings of 49 cents a share.

BMC, which

competes with

CA

(CA) - Get Report

,

IBM

(IBM) - Get Report

and

Hewlett-Packard

(HPQ) - Get Report

, reported sales of $450 million, up 3% on the first quarter of last year and above Wall Street's forecast of $441.11 million.

BMC Mixes Ancient & Modern

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"In a difficult operating environment, BMC performed relatively well during the first quarter of fiscal 2010," said BMC CEO Bob Beauchamp in a statement. "We achieved solid results across most of our key financial metrics, we remain on track to attain our goals for the year, and we are in fact raising our fiscal 2010 guidance."

Excluding items, BMC now expects earnings of between $2.47 and $2.57 a share for fiscal 2010, a 10-cent increase on its prior estimates. Analysts had forecast earnings of $2.42.

Beauchamp nonetheless acknowledged that a longer sales cycle and the "lumpy" nature of its

Mainframe Service Management (MSM)

business affected first-quarter results.

By "lumpy," Beauchamp means that MSM sales were spread out unevenly during the quarter, something that is a constant source of frustration to tech firms making financial projections.

BMC Shares fell 10 cents, or 0. 29, to $34.21 in extended trading.