Software developer BMC Software Inc. (Nasdaq: BMCS) said Thursday it will take a $16 million charge in its first quarter and layoff 275 employees as a result of several large acquisitions in the past year.
Company officials said the layoffs and charges are a byproduct of integrating the acquisition of Boole & Babbage Inc. for $900 million and gobbling up New Dimensions Software Ltd. for $650 million.
First Call consensus expected BMC to earn 40 cents a share in the first quarter.
Last quarter, BMC easily hurdled analysts' estimates, raking in $115.7 million, or 47 cents a share, on sales of $386.5 million.
Its shares motored up to a 52-week high of 60 1/4 in October before plummeting to a low of 30 in April.
Twenty-five of the 27 analysts following the stock rate it either a "buy" or "strong buy."
BMC is expected to earn $1.96 a share in the fiscal year.