BMC posts loss, plans to cut 900 jobs
- 29 July, 2003 12:50
BMC Software plans to cut 13 percent of its workforce and close several offices in a bid to improve its financial health amid an enterprise software buying slump.
On Monday the company reported results for the quarter ended June 30. The results were in line with the lowered guidance it offered earlier this month, when it warned analysts it would not meet earnings expectations. Total revenue for the quarter, the first of BMC's 2004 fiscal year, was US$309.9 million, up 2 percent from the year ago quarter. Licensing revenue slid 21 percent, however, to $107.6 million. An increase in maintenance revenue offset the shortfall.
BMC's net loss for the quarter was $6.1 million. Excluding acquisition-related amortization costs, the company posted pro forma net income of $6.6 million, or $0.03 per share.
BMC, based in Houston, will spend at least $60 million on restructuring, which the company hopes will save it $25 million to $30 million per quarter. About 900 positions will be cut, the company said.