BMC to shed 900 jobs
BMC Software plans to cut 13 per cent of its workforce and close several offices in a bid to improve its financial health amid an enterprise software buying slump. The company’s results for the quarter ended June 30 were in line with the lowered guidance it offered last month, when it warned analysts it would not meet earnings expectations. Total revenue for the quarter was $US309.9 million, up 2 per cent from the previous year. Licensing revenue slid 21 per cent, however, to $US107.6 million. An increase in maintenance revenue offset the shortfall. BMC’s net loss for the quarter was $US6.1 million. BMC will spend at least $US60 million on restructuring, which the company hopes will save it $US25 million to $US30 million per quarter. About 900 positions will be cut, the company said.
PKWare seeks patent for .zip file format
Two months into a standards battle between WinZip Computing and PKWare over the way .zip software does strong encryption, PKWare, the company that has openly published the .zip specification since it was invented by company founder, Phil Katz, in 1986, has applied for a patent that it claims will govern the standards in dispute. PKWare first added strong encryption to its software in July 2002, including it in the release of its PKZip 5.0 for Windows product, but the company elected not to publish details of how it had done the encryption, claiming that it would be premature to do so before the software had been rolled out on different operating systems like OS/400 and MVS. In May, WinZip developed its own method of strong encryption, which was incompatible with the PKWare product. Since then, WinZip and PKWare users have been unable to read each other’s encrypted files.