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Technology Stocks : BMC Software -- Ignore unavailable to you. Want to Upgrade?

To: Charger who wrote (631)	3/8/1999 2:11:00 PM
From: Chuzzlewit	Respond to of 1492

Well, it can't be because of the New Dimension acquisition -- which was all cash: dailynews.yahoo.com Perhaps it has to do with amortizing a combination of restructuring charges associated with various acquisitions. TTFN, CTC

To: Charger who wrote (631)	3/8/1999 2:19:00 PM
From: Paul M. Rengier	Read Replies (1) \| Respond to of 1492

Strange behaviour of the stock! It is so beaten down, that even a senseless aquisition for most of their cash raises the stockprice. Does anybody figure out what BMC will do with a scheduler (Competition: Platinum (Autosys) Orsyp ($Universe) etc)) and an output management system (Competition: beta, Dazel). B&B talked them into that nonsense. ''We are paying cash because we believe our stock is greatly undervalued and prefer to use cash as our acquisition currency,'' said BMC chief financial officer Bill Austin. Why don't they buy back their shares then??? As I said, selling the march 40 puts naked is a shure thing for those with enough guts. Paul

To: Charger who wrote (631)	3/9/1999 10:16:00 AM
From: General Crude	Respond to of 1492

NEW YORK, March 8 (Reuters) - BMC Software Inc. <BMCS.O> expects its proposed $650 million acquisition of Israel's New Dimension Software Ltd <DDDDF.O> to dilute the company's earnings for three to four years, executives said on Monday. Wayne Morris, the business software company's vice president of corporate marketing, said in an interview he expected BMC earnings to be diluted up to 15 percent for its fiscal year ending in March 2000 and by 10 percent in 2001. But he quickly added that the estimated dilution was calculated before any possible revenue growth acceleration resulting from the merger of New Dimensions with BMC. He said BMC would write-off irrelevant research and development costs -- of up to 30 percent of the value of the deal -- in line with guidance by U.S. securities regulators, who have taken a hard line on such accounting moves recently. But excluding this sizable write-off, Morris said he expected the New Dimension acquisition would be accretive to BMC earnings. He also said BMC was confident it could meet the recent Wall Street earnings consensus for its fiscal fourth quarter ending this month of $0.45 per share, which compares to the $0.33 a share in the year-ago quarter ended in March 1998. "It's accretive immediately, excluding the amortization of intangibles," Morris said of the research and development write-off. "There will be up to no more than 15 percent dilution in the first year and 10 percent in the year after," he said. The New Dimension deal, when combined with BMC's previously announced plans to buy Boole & Babbage, creates a company with roughly $2 billion in revenues in the fiscal year ending March 2000, BMC Chief Executive Max Watson told analysts during a conference call discussing terms of the deal. That's up from the $1.4 billion in revenues at the end of the 1998 if the three companies had been merged, a BMC spokesman said. The acquisitions position BMC to become a $3 billion to $5 billion company in the coming years, Morris said. BMC makes systems management software to help prevent breakdowns of key business functions and restore operations when failures occur. New Dimensions software helps coordinate complex computer tasks, extending BMC's product line. He said the New Dimensions deal promises to lower BMC's tax rate and the company's recent rate of 28 percent of revenues represents a high-water mark for several years to come. John Cox, a BMC spokesman, said the New Dimensions purchase will help bolster BMC's revenue growth, which stands to be reduced by a second acquisition BMC plans to make. He said BMC's revenue growth rate, which is expected to grow in the low-30 percent range for the latest year, will be reduced by its merger with Boole & Babbage, which has been growing in the high teens as a percentage. The combination of BMC and Boole will produce a combined company with revenues growing in the mid-20 percent range. But the addition of New Dimensions -- which grew around 40 percent last year -- should return BMC's overall growth rate to the high 20-percent range, Cox said. The 45-cent-a-share earnings estimate for the current quarter doesn't include Boole & Babbage, as the deal is not expected to close until after a shareholder vote on March 30. But during a conference call with Wall Street analysts, BMC officials said Boole & Babbage's quarter appeared to be going well. Afterward, Morris confirmed that, "We are very comfortable with where we are sitting right now," referring to Wall Street earnings estimates. BMC officials encouraged investors to look past the expected dilution to earnings and focus on the broader strategic goals of the New Dimension acquisition. In the statement announcing the deal, BMC had said it planned to use cash rather than stock to fund the deal because it feels its stock is undervalued at current levels. By mid-afternoon Monday, BMC stock had climbed to $42, up $3.81 from Friday's close. New Dimensions stock rose $2.50 to $51.44, while Boole & Babbage rose $2.69 to $28.19. All three stocks trade on the Nasdaq stock market. BMC shares remain nearly one-third lower than the $60 record level they reached last September. By contrast, New Dimensions stock has roughly doubled since September.