BMC Software to buy back $1 billion of shares
(Reuters) - Business software maker BMC Software Inc BMC.O 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.
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)
- Obama makes rare campaign trail appearance, people leave early
- Obama makes rare campaign trail appearance, some leave early
- Turkey to let Iraqi Kurds reinforce Kobani as U.S. drops arms to defenders |
- Nigeria declared Ebola-free, holds lessons for others |
- U.S. stocks end higher despite drag from IBM