Feeds

BMC cuts 900 jobs

Trying to staunch red ink

  • alert
  • submit to reddit

5 things you didn’t know about cloud backup

Software maker BMC said today it is to slash 900 jobs globally in an effort to stem losses.

The company, which makes software products that monitor traffic on mainframe and networked computer systems, said that it will cut about 13 per cent of its global workforce and is planning facility closures and office consolidations to save about $30 million in costs per quarter. The company expects to take a $60 million once-off charge for the cuts.

"Although we fully expect the IT spending environment to remain challenging, we are confident that our restructuring actions will allow us to improve our profitability in the second half of our fiscal year," said Bob Beauchamp, president and CEO.

Investors were pleased with BMC's announcement and the company's shares rose $0.20, or 1.5 percent, to $13.90 in early morning trading on the New York Stock Exchange.

Part of this rise however could be attributed to the company's results, which beat recently lowered expectations. The software maker posted a loss of $6.1 million, or $0.03 a share, in its fiscal first quarter, compared with earnings of $5.2 million, or $0.02 a share a year ago. Excluding once-off charges and gains, the firm had a profit of $0.03 per share and along these lines, the company beat the forecasts on Wall Street of earnings of about $0.02 per share.

Revenue rose 2 per cent to $310 million from $305.2 million a year ago as revenue from maintenance contracts and professional services climbed 23 per cent and 4 per cent respectively. But a 21 per cent drop in licence revenue cut into these gains.

Looking forward, BMC expects second-quarter earnings excluding items of $0.04 to $0.06 per share, behind the $0.07 predictions analysts currently expect, according to Thomson First Call. BMC did however say that it expected earnings of $0.46 per share for the full year, which is in line with market forecasts.

About 90 people are employed at BMC Ireland, where the company recently added 20 jobs. Brendan O'Reilly, the country manager for BMC Ireland, was unable to rule out cuts entirely, but said he would be "very surprised" if the group decided to cut any of its Irish workforce.

© ENN

Build a business case: developing custom apps

More from The Register

next story
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
VMware vaporises vCHS hybrid cloud service
AnD yEt mOre cRazy cAps to dEal wIth
Better be Nimble, tech giants, or mutant upstarts will make off with your sales
Usual suspects struggling to create competing products
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.