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BMC Boosts Forecast

The systems management software maker expects second-quarter profit and sales to beat its previous guidance.

Late Tuesday,

BMC Software


raised its guidance on the top and bottom lines for the company's second quarter.

BMC said its non-GAAP EPS will surpass its top range of 27 cents to 32 cents, forecast in August.

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Likewise, the IT infrastructure company said that revenue will exceed the high end of its previous guidance of $365 million to $380 million.

The revised outlook beats the average estimate from Thomson First Call analysts who pegged the company's EPS of 32 cents on sales of $373.6 million.

On Monday, Credit Suisse analyst Jason Maynard raised his rating on the stock from underperform to neutral, and bumped up his price target from $21 to $31. Maynard said that bookings and revenue have stabilized, and combined with the company's cost-cutting measures, there is less downside risk to estimates.

Additionally, he said that BMC should hit the high end of its guidance, projecting $379 million in sales and a profit of 32 cents a share.

BMC will update fiscal 2007 guidance when it reports results on Nov. 8.

Shares dipped a dime in recent after-hours trading to $28.56.