BMC software last week announced it had exceeded expectations and reported US$387 million in revenue for the second quarter of fiscal 2007.
The management software maker reported its second quarter net earnings to be US$58 million, up US$15 million from its fiscal 2006 second quarter net earnings of US$43 million. More important, according to financial analysts at Goldman Sachs, are BMC's "strong bookings results." BMC said its license bookings for the quarter were up 23 percent and specifically, business service management (BSM) contracts increased 30 percent.
"Total revenues are up significantly. Our Business Service Management strategy is driving strong growth in license bookings, which is one of several leading indicators that BSM is in the mainstream with customers," said Bob Beauchamp, BMC president and CEO, in a company press release.
Goldman Sachs cites a realigned sales force and pared down costs as reasons BMC could out-perform next quarter as well. The financial analysis firm also credits partnerships with systems integrators such as Accenture on BSM deals and upgrades to its Performance Manager distributed systems management product as sources for BMC's quarterly success. The company saw a 26 percent increase in enterprise service management license bookings this quarter up from 1 percent in the first quarter and a decline of 7 percent for fiscal 2006.
"The rebound came from both core BSM, up 30 percent [year-over-year] and distributed systems management up 21 percent. The improvements are coming amid what seems to be a perfect storm of various benefits," reads a recent Goldman Sachs report.
BMC says this is the sixth consecutive quarter the company has met or exceeded forecasts.