Back to top

Analyst Blog

BMC Software Inc. continues to build its customer base aggressively, recently winning a new deal from PrimeLending. The residential mortgage company has deployed “BMC FootPrints” for effectively managing its increasing service desk requests.

The company realized that it could effectively use this technology in multiple departments ranging from HR to Licensing. We believe this will help PrimeLending in the long run, as the company was looking for an effective system to address the incremental employee dissatisfaction with the functioning of the help desk performance. The company also needed a solution to support its growth.

This latest development comes on the heels of a separate deal with Royal DSM that BMC won late last month. The company will be offering its software-as-a-service (SaaS)-based Remedy OnDemand to Royal DSM, which is expected to expand its corporate IT offerings and improve customer satisfaction.

The selection of this SaaS-based solution will help Royal DSM to increase its service management capabilities, which will help it to better manage its customers. This new implementation is expected to improve the process execution capabilities of the company.

We believe that this particular product from BMC will find many takers, as it makes life easier for retailers and merchandisers. BMC has been enjoying a steady flow of deals and is also witnessing steady growth in its SaaS-based business. Cloud bookings have also improved.

On the other hand, significant Fed budget cuts have had an impact on government funds for IT administration. This apart, the economic weakness in Europe is also affecting business.

On the other hand, growing competition from big players such as IBM Corp. (IBM - Analyst Report), Hewlett-Packard Company (HPQ - Analyst Report), EMC Corp. (EMC - Analyst Report) and CA Technologies (CA - Analyst Report) will pose challenge for the company.

BMC carries a Zacks #3 Rank, implying a short-term Hold rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SOUTHWEST A… LUV 31.99 +2.40%
CHINA BIOLO… CBPO 47.40 +2.20%
MALLINCKROD… MNK 72.32 +1.97%
PLANAR SYST… PLNR 4.30 +1.78%
GILEAD SCIE… GILD 103.80 +1.50%