BMC Software Inc. (Nasdaq: BMCS) plummeted 14 3/16 Wednesday to 21 5/16 after the company said results for the first quarter ended June 30 will come in below analysts’ estimates.
BMC said income before items will be about 18 to 21 cents per share, on revenue of $365 million to $375 million. A year earlier, the company earned 42 cents per share on revenue of $400.7 million.
Chairman, President and Chief Executive Officer Max Watson blamed the shortfall on weakness in the company’s mainframe business at quarter’s end. “We depend each quarter on a high percentage of license revenue closing in the last days or day of the quarter,” he said. “While I am disappointed in these results, I remain confident in our employees, our customers and our solutions.”
BMC’s warning came on the heels of similar predictions of weak showings by Computer Associates International Inc. and Entrust Technologies Inc. Shares of those companies fell as well.