On Air Now

Upcoming Shows

Program Schedule »

Listen

Listen Live Now » 590 AM Kalamazoo, MI

Weather

Current Conditions(Kalamazoo,MI 49001)

More Weather »
73° Feels Like: 73°
Wind: WSW 16 mph Past 24 hrs - Precip: 0”
Current Radar for Zip

Today

Scattered Thunderstorms 82°

Tonight

Scattered Thunderstorms 67°

Tomorrow

Partly Cloudy 79°

Alerts

BMC Software to buy back $1 billion of shares

(Reuters) - Business software maker BMC Software Inc reported lower-than-expected revenue and announced a $1 billion share repurchase plan after a strategic review.

BMC, which was under pressure from hedge fund Elliott Management to sell itself, recently approached potential suitors, Reuters reported earlier this month, citing sources.

The company expects to complete the share repurchase within the next 12 months.

The new authorization brings the company's total outstanding share buyback plan to about $1.5 billion.

Shares of the Houston, Texas-based company were up 2 percent at $41.55 in extended trading. They closed at $40.70 on the Nasdaq on Wednesday.

By announcing the share repurchase plan, the company was being "pretty diligent", and this would be perceived positively by investors, Susquehanna Financial Group analyst Derrick Wood said.

IMPROVED BOOKINGS

The company said license bookings improved in the second quarter as it rebuilds its sales force, which has been hit by high attrition in the last several quarters.

The company saw 28 percent more sales capacity, compared with the year-earlier quarter, Chief Executive Bob Beauchamp told Reuters.

The company said enterprise service management license bookings, which accounted for nearly 57 percent of its revenue last year, rose 2 percent.

The company reiterated its full-year adjusted earnings forecast of $3.49 to $3.59 per share.

Net income fell to $97.8 million, or 61 cents per share, in the second quarter, from $114.7 million, or 65 cents per share, a year earlier.

Excluding items, earnings were 88 cents per share.

Revenue fell 2 percent to $548.2 million.

Analysts had expected earnings of 88 cents per share on revenue of $552.20 million, according to Thomson Reuters I/B/E/S.

(Reporting by Neha Alawadhi in Bangalore; Editing by Saumyadeb Chakrabarty, Maju Samuel)

Comments