Systems management software company BMC Software (NYSE: BMC) was up US$1.05 to $24.35 in Friday morning trading, after reporting that its fourth-quarter profit would meet Wall Street estimates.
The Houston, Texas-based firm also announced that it was cutting 6 percent of its workforce, or roughly 440 employees, in a bid to boost profit margins.
BMC is coming off a tough 2000, when it was hit hard by the widespread sales decline for all vendors of mainframe software.
“I am extremely proud of the progress BMC Software made in the last two quarters of fiscal 2001,” BMC president and chief executive officer Bob Beauchamp said. “These results reaffirm that our customers view our solutions as critical to the success of their businesses.”
BMC forecast revenue for the fourth quarter ended in March between $412 million to $422 million, higher than the company’s earlier projection of $401 million to $409 million. Analysts had pegged revenue of $409 million.
Earnings for the period will be in a range between 23 and 25 cents per share, roughly in line with analyst calls for 24 cents, but down from 49 cents a year ago. The company is scheduled to post results for the quarter on April 24th.
The company also said it would record a one-time charge of $14 million in the first quarter related to job cuts.
“We felt that by combining these targeted reductions with the positive revenue growth momentum of the previous two quarters, we will be ready to begin fiscal year 2002 on a firm foundation for revenue and earnings growth,” Beauchamp said.