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.
This week, the company reported results for the quarter ended June 30. They were in line with the lowered guidance it offered earlier this month, when it warned analysts it would not meet earnings expectations.
Total revenue for the quarter, the first of BMC's 2004 fiscal year, was $US309.9 million, up 2 per cent from the year ago quarter. 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. Excluding acquisition-related amortisation costs, the company posted pro forma net income of $US6.6 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.