(Corrects paragraph 7 to say BMC had high attrition in the
fiscal year ended March 31, not last several quarters)
Oct 31 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
The company said license bookings improved in the second
quarter as it rebuilds its sales force, which had been hit by
high attrition in the fiscal year ended March 31.
The company saw 28 percent more sales capacity, compared
with the year-earlier quarter, Chief Executive Bob Beauchamp
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 it 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
(Reporting by Neha Alawadhi in Bangalore; Editing by Saumyadeb
Chakrabarty, Maju Samuel)