BMC Software's second quarter results illustrated that IT spending is rebounding and its strategy to focus on hybrid IT environments ranging from mainframe management to SaaS to cloud computing is set to payoff.
On Wednesday, BMC reported second quarter earnings of $111 million, or 59 cents a share, on revenue of $508 million, up 4 percent from a year ago. Non-GAAP earnings were 76 cents a share, 8 cents better than Wall Street estimates (statement).
BMC also raised its outlook and projected fiscal 2010 earnings of $3.64 a share to $2.72 a share.
What's going on? BMC, one of the companies to watch in 2010, is set up as a software company that manages legacy environments---think mainframes---and has positioned itself into new delivery models like software as a service and cloud computing.
Toss in an improved IT spending environment and BMC appears to entering a high gear. Here are some notable quotes from BMC's earnings conference call. BMC CEO Bob Beauchamp said:
It is most likely the customers will combine traditional legacy systems with one more or all of these new technology trends in order to address their current and future business needs. We see a big opportunity here to effectively manage across a hybrid of environment.
As we look out over the remainder of 2010 and into fiscal 2011 we are beginning to see signs of improvement in the economy and IT spending.
We are beginning to see a signs of improvement in the global economic environment, key technology trends are driving increasing demand for IT management platforms that are vendor neutral and can scale across heterogeneous IT system. We have this experience and technology solution to meet that demand.
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