BMC picks up MQSoftware, expands into middleware management
BMC Software said Monday that it has acquired MQSoftware in a move that will expand its offering from mainframe and systems monitoring to middleware.
Terms of the deal weren't disclosed (statement). BMC positioned the move as a natural evolution to provide monitoring from the mainframe to the middleware and all the transactions that occur in between.
BMC also noted that privately held MQSoftware was already a partner and integrated with its software. BMC said that it is aiming to reduce costs, cut downtime and improve staff productivity for its customers.
Last week, BMC reported quarterly results that had a few moving parts, but analysts are expecting a big second half of the year. The company reported adjusted first quarter earnings of 59 cents a share, a dime better than Wall Street estimates. The company reported net income of $82.4 million, or 44 cents a share, on revenue of $450 million, up 3 percent from a year ago. BMC also upped its 2010 profit outlook.
Robert Beauchamp, CEO of BMC, noted on a conference call that the company's mainframe management software business can be lumpy.
Here's JP Morgan analyst John DiFucci's take:
BMC reported results for its fiscal first quarter (ending June) that looked solid on the surface, but there were certainly indications that the business momentum of the company was much less than initially appears. The non-GAAP income statement was solid, even strong on the bottom line, but other than what looks to be good expense control, revenue was assisted by more license bookings being recognized upfront (versus ratably) than is typical, bookings declined by 19% year-over-year, and EPS benefited by $0.04 due to a lower tax rate.
Goldman Sachs analyst Derek Bingham wrote in a research note:
We believe BMC is on track to close the approximate $70 mn of bookings shortfall from June. The company has particularly high visibility on its mainframe-led contracts, where it remains confident in the renewal opportunity ramping in the back half of the fiscal year, with some new large deal opportunities also having recently emerged...New, high-profile relationships at Cisco, Amazon, Dell, and others continue to underline BMC’s strategic importance, particularly related to the BladeLogic franchise. Cisco’s UCS began shipping within recent weeks, with earliest signs of attach rates and take-home to BMC appearing to be a greater revenue opportunity than we had previously assumed.
Also see: BMC to link up with Amazon Web Services for hybrid cloud deployments