BMC Software has posted a $41.1m (£23m) loss for the first quarter, but is predicting a rosier future.
The software firm saw revenues rise by 7% to $348.3m and its profits before special items – including the costs of a major restructuring – were $43.9m, up 39% compared with the same period a year ago.
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The restructuring plan, announced in April, will see between 825 and 875 jobs axed – about12% of the global workforce – and is expected to produce cost savings of $100m a year.
Announcing its results, BMC raised its previous estimates for the financial year as a whole. It is now estimating revenues of between $1.49bn and $1.52bn, compared with an earlier forecast of between $1.48bn and $1.50bn.
The company ended the first quarter with a record $1.3bn in cash and marketable securities and a record $1.6bn in deferred revenues.
BMC president and chief executive Bob Beauchamp said, “This was a strong quarter for BMC as our customers continued to respond favourably to our Business Service Management solutions.
“Despite a competitive environment, our implementation of a major restructuring and the reallocation of sales resources to growth businesses, we sharpened our focus and significantly improved our operating margin. The growth in profitability of our business is indicative of the value of these initiatives.”