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BMC, which has a manufacturing and distribution operation in Dublin employing 70 people, said it had net income of USD5.2 million, or USD0.02 a share, in its first fiscal quarter. This compared to a net loss of USD34.5 million, or USD0.14 a share, in the same period a year ago.
Although earnings were up, revenues were down in the quarter to USD305.2 million from the USD341 million achieved in the same quarter of its previous fiscal year. License revenues were USD136 million, which was a fall from USD180 million, while professional services revenues also dropped to USD19.5 million from USD21.7 million. On a brighter note, maintenance revenues increased over the year from USD139.3 million to USD149.7 million.
The company also booked USD64.7 million in deferred revenue and said it signed a USD30 million deal during the quarter with a large financial services company. The revenues from that deal will be paid over the lifetime of the five-year contract.
Excluding charges for amoritisation of goodwill and intangibles and special items, BMC earned USD18.3 million, or USD0.08 a share, which was in line with the Thomson Financial/First Call consensus.
BMC said the fall in revenues was partly due to the "continued weakness" of its European business, as well as the fall in demand for its flagship Patrol Product, which monitors networks of server computers running the Unix operating system.
Pointing toward better figures, BMC said it reduced its operating expenses by 12 percent over the year to USD295.1 million. It also had cash and marketable securities of USD1.25 billion, which it said was a record for the company.
Looking forward, BMC's president and chief executive, Bob Beauchamp, said he expected more companies to look for contracts that allow deferred payments and that the European market will remain weak. "The IT environment remains tight with few signs of near-term recovery," said Beauchamp.
BMC said that it expected second quarter fiscal 2003 earnings per share in the range of USD0.02 to USD0.06. The analysts' average was earnings of around USD0.09. For the whole of fiscal 2003, BMC said earnings should be between USD0.32 to USD0.42 a share, which is considerably below its previous outlook of USD0.46 to USD0.52 a share.
In early trading on the New York Stock Exchange, BMC was down 3.5 percent to USD11.85. Its shares have lost around 35 percent of their value since the start of its fiscal first quarter.
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