BMC Software Hosts Annual Investor Day in New York City; Company to Reaffirm Fiscal Year 2010 Expectations

HOUSTON, June 23, 2009 – BMC Software (NYSE: BMC) today is hosting its annual BMC Investor Day at the Le Parker Meridian Hotel, located at 119 West 56th Street in New York City. The event will feature the Company’s senior management, including:

• Bob Beauchamp, chairman and chief executive officer
• Dev Ittycheria, president, Enterprise Service Management business unit
• Bill Miller, president, Mainframe Service Management business unit
• Stephen Solcher, senior vice president and chief financial officer

A series of presentations will provide investors with a detailed overview of the Company’s strategy, financial performance and business initiatives. The event will begin at 8:30 am and conclude at 12:00 pm, and a live web cast will be available at www.bmc.com/investors. All times are Eastern Daylight Time.

During the meeting, BMC will reaffirm its previously issued expectations for non-GAAP EPS and cash flow from operations in fiscal year 2010:

• The Company expects non-GAAP earnings per share in the range of $2.37 to $2.47 per share. This range assumes an effective tax rate of 30 percent and excludes an estimated $0.60 to $0.64 cents of special items, including expenses related to the amortization of acquired technology and intangibles, stock-based compensation and restructuring activity.
• The Company expects cash flow from operations to be between $600 million and $650 million. This assumes a $40 million increase in cash taxes paid during fiscal 2010 and a $60 million adverse impact from currency. As in fiscal 2009, the Company expects virtually all of the cash flow from operations to be derived from cash earnings versus changes in working capital.

Key assumptions underlying the Company’s full year fiscal 2010 non-GAAP earnings per share estimate include:

• Total bookings and revenue growth in the low single digits on a reported basis. Constant currency growth rates are expected to be 100 basis points higher for both bookings and revenue;
• A license bookings ratable rate in the mid 50’s versus 50 percent in fiscal 2009 as the Company expects to continue to have a higher volume of large transactions with complex terms and conditions;
• No material benefit from the Company’s relationship with Cisco in fiscal 2010, which is the first year of the partnership;
• A continued improvement in non-GAAP operating margin;
• Other income that reflects the current interest rate environment and reflects a full year of interest expense on our debt;
• Share count similar to prior year.

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures which exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles, or GAAP. These non-GAAP financial measures exclude the amortization of intangible assets, share-based compensation expense and restructuring charges, as well as the related tax impacts of these items. These adjustments are described in more detail on BMC’s website (www.bmc.com/investors/earnings) in our quarterly conference call materials and earnings press releases. As it relates to historical reported periods, these materials also contain reconciliations of non-GAAP measures to comparable GAAP financial measures.
 

Public Relations Contacts:

Derrick Vializ
Phone: 1 713 918-1805
derrick_vializ@bmc.com

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