Leading large enterprise software company, BMC Software Inc. (BMC) has won a big deal with the world’s largest trading exchange NASDAQ OMX. The exchange has selected the “Business Service Management” (BSM) function offered by the IT major, as it is expected to increase the operational efficiency of the company.
BMC has pioneered the business service management (BSM) concept, which helps to combine IT operations with the intention of achieving specific business goals. The service is targeted at large enterprises, where we believe the company will gain ground.
The BSM applications have already fetched some customers. Most recently, the company was awarded a contract by The Bank of East Asia (China) Ltd. The bank will be incorporating the BSM services to deliver a comprehensive IT management platform and build a data center in support of its growing banking business.
BMC has also entered into an agreement with Italian entertainment company Dada, which will be using the BSM platform for optimal integration of both open source and proprietary solutions.
This apart, we have noticed an encouraging trend among various government agencies, which are increasingly turning to professional management for their IT infrastructure. This is bringing in many government contracts for BMC, such as the ones with U.S. defense organizations. We expect the steady flow of business deals to positively impact the company’s revenue stream going forward.
The company reported decent third quarter results and provided a positive outlook for fiscal year 2010. Earnings exceeded the Zacks Consensus estimate by 16 cents.
This apart, revenue for the third quarter increased 4% from the year-ago period. The Zacks Consensus Estimate for fiscal year 2010 is $2.37, indicating a growth of 22.9% from the year-ago period. We see no estimate revisions either for the upcoming quarter or for fiscal year 2010.
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