BMC Software fiscal 4th-quarter net income jumps but misses expectations; shares sink

BMC Software 4Q net income jumps 43 pct on gain

HOUSTON — Business software maker BMC Software Inc. said Wednesday that its fiscal fourth-quarter net income rose 43 percent, helped by an income tax benefit.

But results missed Wall Street’s expectations, sending shares tumbling in extended trading.

For the three months ended March 31, BMC said its net income increased to $118.8 million, or 64 cents per share, from $83.3 million, or 44 cents per share, in the same period a year before. Results in the latest quarter were helped by a $30 million income tax gain.

Excluding special items such as stock options expenses, amortization charges and the tax benefit, BMC’s net income totaled 65 cents per share in the latest quarter.

Analysts surveyed by Thomson Reuters had forecast income of 70 cents per share.

Revenue edged up 2 percent to $491.3 million from $479.3 million, less than the $508.7 million analysts expected.

Excluding the effect of changes in foreign exchange rates, BMC said revenue was relatively flat compared with last year.

For the full year, BMC said net income jumped 71 percent to $406.1 million, or $2.17 per share. On an adjusted basis, net income was $2.66 per share. Revenue inched up 2 percent to $1.9 billion.

For the current fiscal year, BMC expects adjusted earnings of $2.84 to $2.94 per share. Wall Street projects net income of $2.83 per share.

Shares of BMC fell $1.28, or 3.4 percent, to $36.80 in after-hours trading. Earlier, the stock had slipped 14 cents to close at $38.08. The stock has ranged from $31 to $41.27 over the past year.