October 29, 2009 / 10:20 PM / 9 years ago

UPDATE 2-BMC Software Q2 profit beats Street, ups 2010 EPS view

* Q2 adj EPS $0.66 vs est of $0.58

* Sees 2010 adj EPS $2.55 to $2.65 vs est $2.51

* Q2 bookings up 6 pct, oper costs down 10 pct

* Q2 rev $462 mln vs est $462.7 mln (Adds details, CEO comments, byline)

By Sayantani Ghosh

BANGALORE, Oct 29 (Reuters) - Business software maker BMC Software Inc BMC.O posted better-than-expected quarterly results as operating expenses fell and bookings grew, and also raised its fiscal 2010 profit outlook for the second time.

The company, which provides software to automate data center operations, said second-quarter bookings grew to $431 million, rebounding slightly after a disappointing first quarter.

The rise in bookings helped it back its fiscal 2010 outlook for low single digits growth for both bookings and revenue.

During the quarter, the company’s average transaction size grew, as it complete 20 non-mainframe license deals over a million dollars, it said in a conference call with analysts.

Bookings growth was aligned with the company’s expectations, CEO Bob Beauchamp told Reuters over phone. “We feel quite good about the second half of the year,” he said.

Beauchamp said he was encouraged by recent macroeconomic numbers and comments, and more specifically by the company’s growing deal pipeline.

Macroeconomic conditions would, however, continue to be difficult, he said, adding that IT spending would have to go through more filters than it did in the first and second quarter, with customers exercising caution before signing contracts. In the second quarter, the company posted a profit of 66 cents a share, beating analysts’ average expectations of 58 cents a share, according to Thomson Reuters I/B/E/S. [ID:nWNAB7042]

Shares of the Houston, Texas-based company, which recently shifted from the New York Stock Exchange to Nasdaq, rose 2 percent in extended trading, after closing at $37.22 Thursday. (Editing by Unnikrishnan Nair and Savio D’Souza)

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