BMC Software Inc. (BMC) said Wednesday after the markets closed that its first quarter profit rose 13% from last year, helped by higher revenue and a tax benefit. However, the company's quarterly earnings per share, excluding items, came in below analysts' expectations as did its quarterly revenue. At the same time, the company reiterated its non-GAAP earnings guidance for the fiscal year 2011.
The Houston, Texas-based business software maker reported GAAP net income for the first quarter of $92.8 million or $0.50 per share, compared to $82.4 million and $0.44 per share for the year-ago quarter.
The company said it recorded a $14 million income tax benefit in the latest quarter in connection with a settlement with a taxing authority relating to prior years' tax matters.
Excluding stock options expense and other items, non-GAAP net income for the first quarter was $113.6 million or $0.62 per share, compared to $110.6 million or $0.59 per share in the prior year quarter.
On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.64 per share for the first quarter. Analysts' estimates typically exclude special items.
GAAP operating margin for the quarter fell to 23% from 24% a year ago, while non-GAAP operating margin increased to 34% from 33% last year.
Total revenue for the first quarter increased 2.4% to $469.9 million from $450.0 million in the same quarter last year. Eleven analysts had a consensus revenue estimate of $472.80 million for the first quarter.
License revenue increased 2.5% from last year to $171.2 million in the first quarter, while maintenance revenue grew 1% to 253.8 million and professional services revenue surged 12.9% to $35.9 million.
"During the first quarter of fiscal 2011, BMC Software had robust bookings growth and a solid overall performance," said Bob Beauchamp, BMC's chairman and chief executive officer.
The company's total bookings in the first quarter were rose 14% year-over-year to $443 million. ESM license bookings jumped 40% to $101 million in the first quarter.
During the first quarter, BMC repurchased 4 million shares of its common stock for $149 million. At the end of the quarter, the company had about $921 million remaining under its existing stock buyback program.
The company reiterated its previously issued fiscal year 2011 non-GAAP earnings guidance of $2.84 to $2.94 per share. Analysts currently expect the company to earn $2.89 per share for the fiscal year 2011.
BMC shares, which have traded in a range of $32.00 to $41.27 over the past year, closed Wednesday's regular trading session at $37.91, down 58 cents or 1.51%.
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