This summary is based on the first quarter fiscal 2008 earnings call conducted by BMC Software, Inc. (BMC: chart) on August 6, 2007.

President, Chief Executive Officer, and Director: Robert E. Beauchamp
Chief Financial Officer, Senior Vice President: Stephen B. Solcher
Investor Relations: Derrick Vializ

Key Investor Issues

- Revenue increased by 7% year-over-year to $385 million.
- Net earnings on GAAP basis was $57 million, up from $31 million a year earlier.
- Earnings per share were 28 cents per share, up from 15 cents in the year ago period.
- Non-GAAP operating income increased by 31% from $68 million a year earlier to $89 million.
- Booking grew 19% on a year-over-year basis and 22% from the previous quarter.

First Quarter Fiscal 2008 Highlights

Bookings grew by 19% to $438 million on a year-over-year basis and up 22% from the previous quarter.

– The company’s bookings growth was broad-based, with increases across both the enterprise service management and mainframe service management business units.
- The licences and maintenance also reported growth in bookings with 55% in crease in licences, a record performance in the last 10 years, driven by the company’s MSM business and its distributed systems management solutions.
- The total bookings on a trailing 12-month basis were $1.75 billion, up 17% compared to the year-ago period. The weighted average contract length for total bookings on a trailing 12-month basis was 2.4 years compared to 2.2 years in the year-ago period.
- With the increase in bookings, and after normalizing for contract length, trailing 12-month annualized bookings increased 6% over the year-ago period to $733 million.
- The company generates $165 million in cashflow from operations resulting from the strong bookings performance in the quarter.

Total ESM license bookings were $70 million, up 30% from the year-ago period.

- The ESM business unit license bookings, the core BSM product, were up 10%, a double-digit growth in the sixth consecutive quarter.
- The Distri in the quarter.

In the Mainframe unit, total MSM bookings on a trailing 12-month basis increased 16% to $747 million, with an average contract length of 3.1 years.

- The year ago results for bookings were $643 million with an average contract length of 2.9 years. Total annualized MSM bookings for the trailing 12 months were up 7% to $239 million.

Revenues increased by 7% to $385 million, surpassing the $380 million guidance provided earlier.

- Global growth in revenue was noted in all major regions on a year-over-year basis, with the U.S. being particularly strong.
- License revenues were $126 million, an increase of 13% compared to a year ago. The percentage of license bookings that was deferred was 58%, which represents a historical high and was higher than the 39% in the year-ago period.
- Maintenance revenues were $236 million, up $6 million sequentially and up 3% compared to a year ago.
- Professional services revenues were $24 million, up 10% compared to $21 million in the year-ago period.
- Total revenues for ESM and MSM segment increased 6% and 7% respectively with the non-GAAP operating margin of 23% for the quarter, up from 19% in the year-ago period.
- Virtually all of the additional revenue generated fell to the non-GAAP operating income line.
- Non-GAAP operating income increased by 31% from $68 million to $89 million.

Net earnings on GAAP basis was $57 million, up from $31 million a year earlier.

- Non-GAAP net earnings were $77 million, an increase of 17% over fiscal 2007.
- This reflects a non-GAAP effective tax rate of 30% compared to 27% in the first quarter of fiscal 2007. These non-GAAP results reflect shares outstanding of 205 million versus 211 million in the year-ago period.

- Earnings per share on a non-GAAP basis was 37 cents per share, a 19% increase from the year ago period and surpassing the guidance in the ninth consecutive year.

GAAP operating income was $61 million compared to $19 million in the year-ago period.

- GAAP net income and fully EPS were $57 million and 28 cents per share, compared to $31 million and 15 cents per share in the first quarter of fiscal 2007.

In Business Service Management segment, the company’s key driver in its improved performance, completed a number of strategic wins with key customers for BSM solutions, such as the U.S. Army, PG&E, and a number of civilian government agencies, such as the EPA, the FAA, Postal Service, and Department of Veteran Affairs.

- The company closed the acquisition of ProactiveNet and continues to sell its offerings on a standalone basis. The company is in far integrating the early warning system for IT into its comprehensive BSM solutions.
- The combined BMC ProactiveNet solution will enable customers to extend their business service management capabilities with BMC''s CMDB enabled solutions, as well as extend their service level agreements to other areas, such as change and configuration management.
- The company also acquired in early July, RealOps, the leader in run book automation solutions. RealOps run book automation solution, coupled with the company’s Atrium CMDB, will enable IT organizations to integrate and automate operational activities across the range of IT management functions.

In the Mainframe Services Management, the company has gained leadership in the mainframe database development and management tools.