NEW YORK (AP) — Shares of BMC Software Inc. fell Wednesday, a day after the company reported disappointing results in its latest quarter.
THE SPARK: The Houston-based business software company said its fiscal first-quarter net income fell 44 percent to $54.1 million, or 33 cents per share.
Profit excluding one-time items came to 65 cents per share on revenue of $502.4 million. Analysts polled by FactSet expected a profit of 74 cents per share on $521.6 million in revenue.
The company kept its profit forecast for fiscal 2013, of $3.49 to $3.59 per share. That bracketed analysts' forecast of $3.51 per share.
THE BIG PICTURE: BMC said that while the quarter was challenging for the company, demand for its products remains high. It attributed the weaker-than-expected results partially to the effects on unfavorable foreign currency exchange rates and tough economic conditions.
BMC, like other companies that do significant business outside the U.S., can suffer when foreign currencies fall in relation to the dollar, because income earned in those currencies shrinks when it's translated back into dollars.
THE ANALYSIS: Citi analyst Walter Pritchard said BMC has problems with productivity as well, however. He rates the company "Neutral."
But Jefferies analyst Aaron Schwartz predicted improvements in productivity as the company's salespeople gain more experience. He kept his "Buy" rating.
THE SHARES: Down $2.18, or 5.5 percent, to $37.42 in heavy afternoon trading. Over the past 52 weeks, the company's shares have traded between $31.62 and $45.70.