While Cisco warned of slowing tech spending for North America, BMC
For the third quarter, BMC's revenue came to $421 million, up 9% from the previous year. Bookings increased 8% to $341 million, indicating that customers continue to load up on BMC's software. The company generated strong operating cash flows, too, tripling in Q3 to $319 million. To top it all off, the company has about $1.5 billion in the bank.
More importantly, BMC thinks the momentum it's currently enjoying will continue. The company boosted its full-year earnings guidance to $1.78 to $1.86 per share, with revenue growth topping 6%.
Over the past few years, BMC has invested aggressively in broadening its product line, known as BSM (business service management) software. It helps companies manage a complex information technology (IT) environment by minimizing downtime, tracking assets, and improving security. These are must-have applications for major companies, and so far, BMC is competing effectively against rivals like IBM
To further bolster its position, BMC continues to buy up companies. In Q3, it purchased Emprisa, which helps with large change-updates across networks, and RealOps, which helps automate some labor-intensive IT approaches.
However, the market might disagree with BMC's view on tech spending. The uncertainty regarding the U.S. economy could mute enthusiasm for large software players -- even those that are showing lots of strength. It may take until next year, as things get clearer, for investors to start warming up to companies like BMC.