Cloud interest sends profit up 40%
Business software firm BMC beat Wall Street expectations during its second quarter, recording a 9% rise in revenue and a 40% jump in profits.
The firm said that demand for cloud computing and hybrid data centres pushed BMC to its impressive figures. Revenue came in at $502.3m, up 8.8% from $461.8m a year ago. Revenue was boosted by a 37% increase in professional services and a near-20% rise is revenue from licences. Net earnings surged 39.9% from $94.2m a year ago to $131.8m this time.
Earnings per share came in at 82 cents, well up on the 70 cents expected by analysts. Revenue has been tipped to come in at $483.3m.
"Cloud computing is fundamentally changing the way customers are thinking about IT. BMC’s strong performance shows that we understand how to make cloud computing a reality today," said BMC CEO Bob Beauchamp.
"We are generating broad-based growth across our business and our cost-discipline and operating leverage position us well for continued improvement to our operating margins and operating income, while at the same time enabling us to increase our investment in our future growth initiatives. Our solid results in the first half and our outlook for the remainder of the year put us on track to exceed our previously stated financial goals for the year," said Steve Solcher, BMC’s chief financial officer.
The company has raised expectations for the rest of the financial year as a result of the impressive Q2 earnings.