FOR IMMEDIATE RELEASE:
INVESTOR RELATIONS CONTACT: MEDIA RELATIONS CONTACT:
Neil Yekell Arch Currid
(713) 918-4233 (713) 918-3236
neil_yekell@bmc.com arch_currid@bmc.com
BMC SOFTWARE ANNOUNCES PRELIMINARY FINANCIAL RESULTS
FOR FIRST QUARTER FISCAL 2005
HOUSTON -- (July 7, 2004) -- BMC Software, Inc. (NYSE: BMC) today released
preliminary financial results for the first quarter of fiscal 2005. BMC Software
preliminarily estimates total revenues for the first quarter ended June 30, 2004
to be in the range of $318 million to $328 million, which is below the estimated
revenue range of $345 million to $355 million that the Company provided in
April. Earnings per share excluding special items for the first quarter of
fiscal 2005 are preliminarily estimated to be in the range of $0.11 to $0.14 per
diluted common share, which compares to the earnings per share estimated range
of $0.12 to $0.16 provided by the Company in April. First quarter of fiscal 2005
earnings per share on a GAAP basis are preliminarily estimated to be in the
range of $0.19 to $0.22 per diluted common share. The difference between the
earnings per share excluding special items and the GAAP earnings per share is
that the earnings per share excluding special items does not include $0.05 per
diluted common share related to amortization of acquired technology and
intangibles and a benefit of $0.13 per diluted common share related to a recent
settlement of a United States tax audit. BMC Software will report final first
quarter results on July 27th.
At the end of the quarter, the Company experienced delays in customer
purchasing decisions among larger accounts, primarily in the United States. The
Company completed 9 license transactions worldwide in excess of $1 million in
the first quarter of fiscal 2005, compared to 16 license transactions in excess
of $1 million in the same quarter of last year.
License bookings are estimated to be down 20 to 26 percent compared to
the first quarter of last year. License bookings measure the value of new
license contracts signed
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during the quarter, including both the amount that goes to the income statement
and the amount that goes to the deferred license revenue account on the balance
sheet.
A conference call to discuss preliminary first quarter results is
scheduled for today at 4:00 p.m. central time. Those interested in participating
may call (719) 457-2692 and use the passcode BMC. To access a replay of the
conference call, which will be available for one week, dial (719) 457-0820 and
use the passcode 257357. A live webcast of the conference call will be available
on the Company's website at www.bmc.com/investors. A replay of the webcast will
be available within 24 hours and archived on the website for 90 days.
BMC SOFTWARE
RECONCILIATION OF GAAP-BASED EPS TO NON-GAAP BASED EPS ESTIMATES
FOR THE THREE MONTHS ENDED JUNE 30, 2004
(UNAUDITED)
<Table>
Low end of range High end of Range
Non-GAAP EPS $0.11 $0.14
Amortization of acquired technology and intangibles,
net of taxes (0.05) (0.05)
Settlement of US tax audit 0.13 0.13
---- ----
GAAP-based EPS $0.19 $0.22
</Table>
USE OF NON-GAAP FINANCIAL INFORMATION
The non-GAAP financial measures used in this press release are not
prepared in accordance with generally accepted accounting principles and may be
different from non-GAAP financial measures used by other companies. The
Company's management refers to these non-GAAP financial measures in making
operating decisions because they provide meaningful supplemental information
regarding the Company's operational performance. In addition, these non-GAAP
financial measures facilitate management's internal comparisons to the Company's
historical operating results and comparisons to competitors' operating results.
We include these non-GAAP financial measures in this press release because we
believe they are useful to investors in allowing for greater transparency to
supplemental information used by management in its financial and operational
decision-making. In addition, we have historically reported similar non-GAAP
financial measures to our
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investors and believe that the inclusion of comparative numbers provides
consistency in our financial reporting at this time.
A brief conference call to discuss first quarter results is scheduled for
July 27, 2004 at 11:00 a.m. central time. Those interested in participating may
call (719) 457- 2633 and use the passcode BMC. To access a replay of the
conference call, which will be available for one week, dial (719) 457-0820 and
use the passcode BMC. A live webcast of the conference call and presentation
will be available on the company's website at www.bmc.com/investors. A replay of
the webcast will be available within 24 hours and archived on the website for 90
days.
ABOUT BMC SOFTWARE
BMC Software, Inc. [NYSE:BMC], is a leading provider of enterprise
management solutions that empower companies to manage their IT infrastructure
from a business perspective. Delivering Business Service Management, BMC
Software solutions span enterprise systems, applications, databases and service
management. Founded in 1980, BMC Software has offices worldwide and fiscal 2004
revenues of more than $1.4 billion. For more information about BMC Software,
visit www.bmc.com.
###
The preliminary financial estimates and statements concerning BMC Software's
future prospects contained in this press release are "forward-looking
statements" under the Private Securities Litigation Reform Act of 1995. The
preliminary estimates of revenues, earnings per share and license bookings
contained in this press release are subject to change. BMC Software will report
final financial results for the June 2004 quarter on July 27th after it has had
additional time for the collection and compilation of additional financial data.
These final financial results for the June 2004 quarter could be materially
different from the estimates in this press release. Numerous important factors
affect BMC Software's operating results and could cause BMC Software's actual
results to differ materially from forecasts and estimates or from any other
forward-looking statements made by, or on behalf of, BMC Software, and there can
be no assurance that future results will meet expectations, estimates or
projections. These factors include, but are not limited to, the following: 1)
BMC Software's revenues and earnings are subject to a number of factors,
including the significant percentage of quarterly sales typically closed at the
end of each quarter, that make estimation of operating results prior to the end
of a quarter extremely uncertain; 2) BMC Software's operating costs and expenses
are relatively fixed over the short term; 3) increased competition and pricing
pressures could adversely affect BMC Software's earnings; 4) growth in BMC
Software's mainframe revenues is dependent on continued demand for significant
additional mainframe MIPS capacity; 5) BMC Software's maintenance revenue could
decline if maintenance renewal rates decline or if license revenues do not
continue to grow; 6) new software products and product strategies may not be
timely introduced or successfully adopted; 7) BMC Software's quarterly cash flow
from operations is and has been volatile and is dependent upon a number of
factors described in BMC Software's filings with the SEC; and 8) the additional
risks and important factors described in BMC Software's quarterly reports on
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Form 10-Q and in its Annual Report to Stockholders on Form 10-K for the fiscal
year ended March 31, 2004 and other filings with the SEC. BMC Software
undertakes no obligation to update information contained in this release.
BMC Software, the BMC Software logos, and all other BMC Software product or
service names are registered trademarks or trademarks of BMC Software, Inc. All
other trademarks or registered trademarks belong to their respective companies.
(C) 2004, BMC Software, Inc. All rights reserved.
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