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`Page 1
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`Copyright 1994 Business Wire, Inc.
`Copyright 1994 Business Wire, Inc.
`Business Wire
`Business Wire
`
`October 24, 1994, Monday
`October 24, 1994, Monday
`
`DISTRIBUTION: Business Editors & High-Tech Writers
`DISTRIBUTION: Business Editors & High—Tech Writers
`
`LENGTH: 3178 words
`LENGTH: 3178 words
`
`HEADLINE: BMC Software reports record earnings per share; strong international growth and market acceptance of
`HEADLINE: BMC Software reports record earnings per share; strong international growth and market acceptance of
`PATROL highlighted
`PATROL highlighted
`
`DATELINE: HOUSTON
`DATELINE: HOUSTON
`
`BODY:
`BODY:
`
`Oct. 24, 1994--BMC Software, Inc. (NASDAQ--BMCS), citing strong growth outside North America and market
`Oct. 24, 1994——BMC Software, Inc.
`(NASDAQ——BMCS), citing strong growth outside North America and market
`acceptance of its PATROL open systems management software, reported record earnings per share for the second fiscal
`acceptance of its PATROL open systems management software, reported record earnings per share for the second fiscal
`quarter of 1995, ending Sept. 30, 1994.
`quarter of 1995, ending Sept. 30, 1994.
`
`Earnings per share in the second quarter increased 25 percent to $.96 vs. $.77 reported in the second quarter of
`Earnings per share in the second quarter increased 25 percent to $.96 vs. $.77 reported in the second quarter of
`fiscal 1994. The $.96 figure is the highest quarterly earnings per share amount ever reported by BMC Software. Net
`fiscal 1994. The $.96 figure is the highest quarterly earnings per share amount ever reported by BMC Software. Net
`earnings for the second quarter of fiscal 1995 increased 20 percent to $24,283,000 over the year-earlier figure of
`earnings for the second quarter of fiscal 1995 increased 20 percent to $24,283,000 over the year-earlier figure of
`$20,193,000. Second quarter revenue was $80 million, an 18 percent increase from the year-earlier $68 million.
`$20,193,000. Second quarter revenue was $80 million, an 18 percent increase from the year—earlier $68 million.
`
`For the six months ended Sept. 30, net earnings totaled $46,384,000, or $1.82 per share, on total revenues of
`For the six months ended Sept. 30, net earnings totaled $46,384,000, or $1.82 per share, on total revenues of
`$158,000,000. In the first six months of fiscal 1994, BMC Software reported net earnings of $38,394,000, or $1.46 per
`$158,000,000. In the first six months of fiscal 1994, BMC Software reported net earnings of $38,394,000, or $1.46 per
`share, on total revenues of $133,000,000.
`share, on total revenues of $133,000,000.
`
`Total license revenues from the second quarter of fiscal 1995 increased 20 percent to $45,957,000. This reflects a
`Total license revenues from the second quarter of fiscal 1995 increased 20 percent to $45,957,000. This reflects a
`greater balance between North American and international operations, with a 60/40 split between the two groups,
`greater balance between North American and international operations, with a 60/40 split between the two groups,
`respectively. The most significant growth was seen in France and the United Kingdom. Achieving a greater balance
`respectively. The most significant growth was seen in France and the United Kingdom. Achieving a greater balance
`between domestic and international revenue is an underlying goal of the company.
`between domestic and international revenue is an underlying goal of the company.
`
`Max Watson, chairman, president and chief executive officer, said the strong results internationally reflect
`Max Watson, chairman, president and chief executive officer, said the strong results internationally reflect
`improved execution and stronger local economies. He added, "In the second quarter of fiscal 1995, the year-over-year
`improved execution and stronger local economies. He added, "In the second quarter of fiscal 1995, the year-over-year
`growth of our international license revenue was the highest that it had been in the last eight quarters. We are pleased
`growth of our international license revenue was the highest that it had been in the last eight quarters. We are pleased
`with the performance of our international operations and look forward to continued improvement."
`with the performance of our international operations and look forward to continued improvement."
`
`PATROL continues to show rapid market acceptance as revenue for the product increased approximately 60
`PATROL continues to show rapid market acceptance as revenue for the product increased approximately 60
`percent in the second quarter, compared to the first quarter of fiscal 1995. The record backlog for PATROL reflects both
`percent in the second quarter, compared to the first quarter of fiscal 1995. The record backlog for PATROL reflects both
`
`ServiceNow V. BMC
`
`BMC EXHIBIT 2003
`
`IPR2015-01176
`
`

`
`Page 2
`Page 2
`BMC Software reports record earnings per share; strong international growth and market acceptance of PATROL
`BMC Software reports record earnings per share; strong international growth and market acceptance of PATROL
`highlighted Business Wire October 24, 1994, Monday
`highlighted Business Wire October 24, 1994, Monday
`
`a strong demand for the PATROL product and acceptance by customers of BMC Software's comprehensive strategy for
`a strong demand for the PATROL product and acceptance by customers of BMC Software's comprehensive strategy for
`managing, monitoring and increasing the efficiency of open systems environments.
`managing, monitoring and increasing the efficiency of open systems environments.
`
`BMC Software continues to build its open systems business with substantial investments in product development
`BMC Software continues to build its open systems business with substantial investments in product development
`and the external recruitment of open systems experts. In the second quarter, Leland Putterman joined BMC Software as
`and the external recruitment of open systems experts. In the second quarter, Leland Putterman joined BMC Software as
`vice president of worldwide marketing. Putterman was recruited from Oracle Corp. where he served in numerous sales
`vice president of worldwide marketing. Putterman was recruited from Oracle Corp. where he served in numerous sales
`and marketing capacities, most recently as vice president, worldwide database and tools marketing.
`and marketing capacities, most recently as vice president, worldwide database and tools marketing.
`
`BMC Software's continued investment in its core mainframe business yielded the release of EXTENDED
`BMC Software's continued investment in its core mainframe business yielded the release of EXTENDED
`TERMINAL ASSIST (ETA)(TM) in the September quarter. ETA simplifies the implementation and maintenance of
`TERMINAL ASSIST (ETA)(TM) in the September quarter. ETA simplifies the implementation and maintenance of
`IBM's(a) Extended Terminal Option (ETO) dynamic terminal feature for IMS/TM. Also announced in the second
`IBM's(a) Extended Terminal Option (ETO) dynamic terminal feature for IIVIS/TM. Also announced in the second
`quarter was Snapshot Copy, an integrated feature of COPY PLUS V4.2 and EXTENDED BUFFER MANAGER
`quarter was Snapshot Copy, an integrated feature of COPY PLUS V4.2 and EXTENDED BUFFER MANAGER
`(XBM) V1.2. A Snapshot Copy is a consistent, registered, DB2 image copy that is made while data is available to users
`(XBM) V1.2. A Snapshot Copy is a consistent, registered, DB2 image copy that is made while data is available to users
`for read and write purposes. This feature reduces the down time associated with making database copies from hours to
`for read and write purposes. This feature reduces the down time associated with making database copies from hours to
`potentially seconds. In addition, five new versions of existing mainframe products were released.
`potentially seconds. In addition, five new versions of existing mainframe products were released.
`
`On the company's performance this quarter, Max Watson explained, "Our ability to deliver consistent quarterly
`On the company's performance this quarter, Max Watson explained, "Our ability to deliver consistent quarterly
`revenue and earnings growth indicates that BMC Software has and will continue to be a leading provider of reliable,
`revenue and earnings growth indicates that BMC Software has and will continue to be a leading provider of reliable,
`high-quality systems software to an ever-changing computing marketplace. Rapid customer acceptance of PATROL in
`high—quality systems software to an ever—changing computing marketplace. Rapid customer acceptance of PATROL in
`the open systems market, as a product and as an underlying architecture for our client/server strategy, not only broadens
`the open systems market, as a product and as an underlying architecture for our client/server strategy, not only broadens
`our customer base, but also underscores the confidence and trust customers place in us. This confidence has put us on
`our customer base, but also underscores the confidence and trust customers place in us. This confidence has put us on
`top of the competition, and we intend to stay there by continuing to meet and exceed customers' expectations."
`top of the competition, and we intend to stay there by continuing to meet and exceed customers’ expectations."
`
`One final note, David Farley, chief financial officer and vice president of finance for BMC Software announced his
`One final note, David Farley, chief financial officer and vice president of finance for BMC Software announced his
`intention to leave the company and join XVT Software, Inc., a small, privately held software company. While at BMC
`intention to leave the company and join XVT Software, Inc., a small, privately held software company. While at BMC
`Software, Farley established a solid framework and capable team of professionals who are prepared to continue the
`Software, Farley established a solid framework and capable team of professionals who are prepared to continue the
`financial management of the company well into the future. On his tenure at BMC Software, David Farley commented,
`financial management of the company well into the future. On his tenure at BMC Software, David Farley commented,
`"In my 10 years at BMC, we built a very small, privately-held company with less than $10 million in annual sales into
`"In my 10 years at BMC, we built a very small, privately-held company with less than $10 million in annual sales into
`an industry leader that is on track to produce over $300 million in fiscal 1995 with record margins." He added, "XVT is
`an industry leader that is on track to produce over $300 million in fiscal 1995 with record margins." He added, "XVT is
`approximately the size BMC was when I joined it in 1984, and I look forward to working again in an emerging growth
`approximately the size BMC was when I joined it in 1984, and I look forward to working again in an emerging growth
`environment."
`environment."
`
`BMC Software is a leading developer and vendor of systems software solutions that enable critical business
`BMC Software is a leading developer and vendor of systems software solutions that enable critical business
`processing. Headquartered in Houston, Texas, the company currently offers 60+ products worldwide that help manage,
`processing. Headquartered in Houston, Texas, the company currently offers 60+ products worldwide that help manage,
`monitor and increase the efficiency of the servers, databases, applications and networks used most widely by Fortune
`monitor and increase the efficiency of the servers, databases, applications and networks used most widely by Fortune
`500 computing enterprises. These include leading UNIX hardware and software systems such as DEC, HP, SUN,
`500 computing enterprises. These include leading UNIX hardware and software systems such as DEC, HP, SUN,
`Oracle, Sybase, Informix, Ingres and IBM mainframe subsystems. BMC Software is a member of Sun Microsystems
`Oracle, Sybase, Informix, Ingres and IBM mainframe subsystems. BMC Software is a member of Sun Microsystems
`Catalyst Program, Hewlett-Packard PA-RISC Developers Program, the Oracle Systems Management Tools Initiative
`Catalyst Program, Hewlett—Packard PA-RISC Developers Program, the Oracle Systems Management Tools Initiative
`(SMTI), NetView Association, IBM Business Partnership and other ISV relationships. -0-
`(SMTI), NetView Association, IBM Business Partnership and other ISV relationships. -0-
`
`NOTE TO ANALYSTS: BMC Software has scheduled a conference call for 4:00 p.m. CST today to discuss the
`NOTE TO ANALYSTS: BMC Software has scheduled a conference call for 4:00 p.m. CST today to discuss the
`second quarter results. Anyone interested in participating may call 415/904-7338.
`second quarter results. Anyone interested in participating may call 415/904-7338.
`
`NOTE: BMC Software, the BMC Software Logo and all other product or service names are registered trademarks
`NOTE: BMC Software, the BMC Software Logo and all other product or service names are registered trademarks
`or trademarks of BMC Software, Inc. in the USA and in other select countries. (R) and (TM) indicate USA registration
`or trademarks of BMC Software, Inc. in the USA and in other select countries. (R) and (TM) indicate USA registration
`or USA trademark. (a) IBM, Informix, Ingres, Oracle, SUN and Sun Microsystems are trademarks or registered
`or USA trademark. (a) IBM, Informix, Ingres, Oracle, SUN and Sun Microsystems are trademarks or registered
`trademarks of, respectively, International Business Machines Corp., Informix Software, Inc., Ingres Corp., Oracle Corp,
`trademarks of, respectively, International Business Machines Corp., Informix Software, Inc., Ingres Corp., Oracle Corp,
`and Sun Microsystems, Inc. Other Logos and product/trade names mentioned are registered trademarks or trademarks of
`and Sun Microsystems, Inc. Other Logos and product/trade names mentioned are registered trademarks or trademarks of
`their respective companies. BMC Software is an Equal Opportunity Employer. -0-
`their respective companies. BMC Software is an Equal Opportunity Employer. -0-
`
`BMC SOFTWARE, INC. AND SUBSIDIARIES
`BMC SOFTWARE, INC. AND SUBSIDIARIES
`
`

`
`Page 3
`Page 3
`BMC Software reports record earnings per share; strong international growth and market acceptance of PATROL
`BMC Software reports record earnings per share; strong international growth and market acceptance of PATROL
`highlighted Business Wire October 24, 1994, Monday
`highlighted Business Wire October 24, 1994, Monday
`
`STATEMENTS OF EARNINGS
`STATEMENTS OF EARNINGS
`(Unaudited)
`(Unaudited)
`
`Three Months Ended
`Three Months Ended
`September 30,
`September 30,
`----------------------------
`Fiscal
`Fiscal
`Fiscal
`Fiscal
`1995
`1994
`1995
`1994
`%Increase
`———-
`———-
`%Increase
`----
`----
`(In thousands, except per share data) (Decrease)
`(In thousands, except per share data) (Decrease)
`
`Revenues:
`Revenues:
`Licenses
`Licenses
`Maintenance
`Maintenance
`
`Operating income
`Operating income
`Other income
`Other income
`
`Net earnings
`Net earnings
`
`Earnings per share
`Earnings per share
`
`26,354
`25,295
`26,354
`25,295
`======== ========
`BMC SOFTWARE, INC. AND SUBSIDIARIES
`BMC SOFTWARE, INC. AND SUBSIDIARIES
`STATEMENTS OF EARNINGS
`STATEMENTS OF EARNINGS
`(Unaudited)
`(Unaudited)
`Six Months Ended
`Six Months Ended
`September 30,
`September 30,
`----------------------------
`Fiscal
`Fiscal
`Fiscal
`Fiscal
`1995
`1994
`1995
`1994
`%Increase
`———-
`———-
`%Increase
`----
`----
`(In thousands, except per share data) (Decrease)
`(In thousands, except per share data) (Decrease)
`
`Revenues:
`Revenues:
`Licenses
`Licenses
`Maintenance
`Maintenance
`
`$ 90,268 $ 74,572
`$ 90,268 $ 74,572
`67,732
`58,428
`67,732
`58,428
`--------
`
`--------
`
`21 %
`21 %
`16 %
`16 %
`
`$ 45,957 $ 38,245
`$ 45,957 $ 38,245
`34,043
`29,755
`34,043
`29,755
`--------
`68,000
`80,000
`Total revenues
`68,000
`80,000
`Total revenues
`Selling and marketing expenses 20,181
`Selling and marketing expenses 20,181
`Research and development
`Research and development
`expenses
`12,996
`expenses
`12,996
`Cost of maintenance services
`Cost of maintenance services
`and product licenses
`7,023
`and product licenses
`7,023
`General and administrative
`General and administrative
`expenses
`7,507
`expenses
`7,507
`--------
`--------
`32,293
`32,293
`2,900
`2,900
`--------
`--------
`Earnings before income taxes 35,193
`Earnings before income taxes 35,193
`Income taxes
`10,910
`9,072
`Income taxes
`10,910
`9,072
`--------
`--------
`$ 24,283 $ 20,193
`$ 24,283 $ 20,193
`======== ========
`$ .96 $ .77
`$
`.96 $
`.77
`======== ========
`Shares used in computing
`Shares used in computing
`earnings per share
`earnings per share
`
`--------
`
`20 %
`20 %
`14 %
`14 %
`
`18 %
`18 %
`
`9 %
`9 %
`
`18,450
`18,450
`
`10,801
`10,801
`
`6,526
`6,526
`
`5,784
`5,784
`
`26,439
`26,439
`2,826
`2,826
`
`20 %
`20 %
`
`8 %
`8 %
`
`30 %
`30 %
`
`22 %
`22 %
`3 %
`3 %
`
`29,265
`29,265
`
`20 %
`20 %
`
`20 %
`20 %
`
`20 %
`20 %
`
`25 %
`25 %
`
`(4)%
`(4)%
`
`

`
`Page 4
`Page 4
`BMC Software reports record earnings per share; strong international growth and market acceptance of PATROL
`BMC Software reports record earnings per share; strong international growth and market acceptance of PATROL
`highlighted Business Wire October 24, 1994, Monday
`highlighted Business Wire October 24, 1994, Monday
`
`19 %
`19 %
`
`16 %
`16 %
`
`22,735
`22,735
`
`18 %
`18 %
`
`13,117
`13,117
`
`16 %
`16 %
`
`12,096
`12,096
`
`13 %
`13 %
`
`158,000 133,000
`Total revenues
`158,000
`133,000
`Total revenues
`Selling and marketing expenses 40,649
`35,156
`Selling and marketing expenses 40,649
`35,156
`Research and development
`Research and development
`expenses
`26,915
`expenses
`26,915
`Cost of maintenance services
`Cost of maintenance services
`and product licenses
`15,212
`and product licenses
`15,212
`General and administrative
`General and administrative
`expenses
`13,701
`expenses
`13,701
`--------
`--------
`61,523
`61,523
`5,700
`5,700
`--------
`--------
`55,267
`Earnings before income taxes 67,223
`55,267
`Earnings before income taxes 67,223
`Income taxes
`20,839
`16,873
`Income taxes
`20,839
`16,873
`--------
`--------
`$ 46,384 $ 38,394
`$ 46,384 $ 38,394
`======== ========
`$ 1.82 $ 1.46
`$ 1.82 $ 1.46
`======== ========
`Shares used in computing
`Shares used in computing
`earnings per share
`earnings per share
`
`Operating income
`Operating income
`Other income
`Other income
`
`49,896
`49,896
`5,371
`5,371
`
`Net earnings
`Net earnings
`
`Earnings per share
`Earnings per share
`
`23 %
`23 %
`6 %
`6 %
`
`22 %
`22 %
`
`24 %
`24 %
`
`21 %
`21 %
`
`25 %
`25 %
`
`(3)%
`(3)%
`
`26,367
`25,497
`26,367
`25,497
`======== ========
`BMC SOFTWARE, INC. AND SUBSIDIARIES
`BMC SOFTWARE, INC. AND SUBSIDIARIES
`CONSOLIDATED BALANCE SHEETS
`CONSOLIDATED BALANCE SHEETS
`Sept. 30, March 31,
`Sept. 30, March 31,
`1994
`1994
`1994
`1994
`----
`----
`(Unaudited)
`(Unaudited)
`(In thousands)
`(In thousands)
`
`ASSETS
`ASSETS
`
`$ 21,531
`$ 21,531
`36,624
`36,624
`
`$ 37,814
`$ 37,814
`42,455
`42,455
`
`Current assets:
`Current assets:
`Cash and cash equivalents
`Cash and cash equivalents
`Marketable securities
`Marketable securities
`Accounts receivable:
`Accounts receivable:
`Trade
`Trade
`Interest and other
`Interest and other
`
`--------
`
`57,711
`57,711
`3,479
`3,479
`
`61,190
`61,190
`2,688
`2,688
`
`63,295
`63,295
`4,610
`4,610
`--------
`67,905
`67,905
`3,078
`3,078
`
`Total receivables
`Total receivables
`Prepaid expenses and other
`Prepaid expenses and other
`Deferred income and other
`Deferred income and other
`taxes
`12,238
`taxes
`12,238
`--------
`
`Total current assets
`Total current assets
`
`--------
`Property and equipment, net
`Property and equipment, net
`Software development costs,
`Software development costs,
`net of accumulated
`net of accumulated
`amortization
`amortization
`Purchased software, net of
`Purchased software, net of
`
`12,412
`12,412
`--------
`141,376
`141,376
`--------
`99,148
`99,148
`
`156,559
`156,559
`
`93,155
`93,155
`
`13,697
`13,697
`
`14,750
`14,750
`
`

`
`Page 5
`Page 5
`BMC Software reports record earnings per share; strong international growth and market acceptance of PATROL
`BMC Software reports record earnings per share; strong international growth and market acceptance of PATROL
`highlighted Business Wire October 24, 1994, Monday
`highlighted Business Wire October 24, 1994, Monday
`
`6,851
`accumulated amortization
`6,851
`accumulated amortization
`12,159
`Finance receivables
`12,159
`Finance receivables
`156,993
`Marketable securities
`156,993
`Marketable securities
`Deferred charges and other assets
`2,161
`Deferred charges and other assets
`2,161
`--------
`--------
`$432,385
`$417,527
`========
`========
`LIABILITIES AND STOCKHOLDERS' EQUITY
`LIABILITIES AND STOCKHOLDERS‘ EQUITY
`
`8,230
`8,230
`4,140
`4,140
`138,654
`138,654
`2,039
`2,039
`
`Current liabilities:
`Current liabilities:
`Trade accounts payable
`Trade accounts payable
`Treasury Stock Obligation
`Treasury Stock Obligation
`Accrued liabilities
`Accrued liabilities
`Taxes payable
`Taxes payable
`Current portion of deferred
`Current portion of deferred
`79,287
`revenue
`80,630
`79,287
`revenue
`80,630
`--------
`--------
`Total current liabilities
`120,984
`Total current liabilities
`120,984
`--------
`--------
`Deferred revenue and other
`42,227
`Deferred revenue and other
`42,227
`--------
`--------
`163,211
`163,211
`--------
`--------
`
`$ 10,335
`$ 10,335
`--
`——
`
`24,719
`24,719
`5,300
`5,300
`
`$ 7,626
`$ 7,626
`12,181
`12,181
`24,046
`24,046
`3,990
`3,990
`
`127,130
`127,130
`
`39,997
`39,997
`
`Total liabilities
`Total liabilities
`
`167,127
`167,127
`
`Stockholders' equity:
`Stockholders’ equity:
`Common stock
`Common stock
`Additional paid-in capital
`Additional paid—in capital
`Retained earnings
`Retained earnings
`Foreign currency translation
`Foreign currency translation
`adjustment
`adjustment
`
`262
`262
`68,523
`68,523
`265,334
`265,334
`
`262
`262
`68,115
`68,115
`218,950
`218,950
`
`(911)
`(91 1)
`
`(703)
`(703)
`--------
`--------
`286,416
`333,416
`286,416
`333,416
`59,004
`31,306
`59,004
`31,306
`
`Less treasury stock
`Less treasury stock
`Less unearned portion of
`Less unearned portion of
`restricted stock compensation
`restricted stock compensation
`--------
`Total stockholders' equity
`Total stockholders’ equity
`--------
`$432,385
`========
`
`4,710
`4,710
`
`250,400
`250,400
`
`5,238
`5,238
`--------
`269,174
`269,174
`--------
`$417,527
`========
`
`CONTACT: BMC Software, Inc., Houston
`CONTACT: BMC Software, Inc., Houston
`John Cox, 713/918-8800 (investor relations)
`John Cox, 713/918-8800 (investor relations)
`Lisa Cradit/Bill Courtney, 713/918-8800 (media relations)
`Lisa Cradit/Bill Courtney, 713/918-8800 (media relations)
`
`LOAD-DATE: October 25, 1994
`LOAD-DATE: October 25, 1994