BMC Software Beats Estimates

Revenue grows 34%.

Author:: Ivy Lessner
Publish date:: Nov 6, 2007 4:53 PM EST

SAN FRANCISCO -- BMC Software's (BMC) second-quarter earnings trounced the Street's expectations Tuesday.

The Houston-based business software company reported revenue of $420.7 million, up 8.8% from $386.7 million in the same quarter of last year. Analysts polled by Thomson Financial were expecting a top line of $404.6 million.

Earnings rose 34% to $78.2 million, or 39 cents a share, from $58.2 million, or 28 cents a share, a year ago.

Excluding items, EPS was 48 cents. Analysts were expecting 42 cents.

Excluding items, operating margin for the quarter was 28%, vs. 22% a year ago. BMC said cash flow from operations had tripled during the first half of the fiscal year to $319 million, from $83 million for the same period of last year.

Shares of BMC were up 92 cents, or 2.7%, to $34.60.

The company said third-quarter revenue will range from $430 million to $445 million. Excluding items, EPS is expected to be between 46 cents and 51 cents. Analysts were looking for a top line of $431 million and EPS, excluding items, of 47 cents.