In the fourth quarter, diluted earnings per share, excluding special charges and amortization of goodwill and intangibles, were $.26, an 18 percent increase compared to the third quarter of fiscal 2001, and a 47 percent decrease from the prior year’s fourth quarter. These revenue and earnings per share results exceed the guidance provided by the Company in January 2001. Net earnings, excluding special charges and amortization of goodwill and intangibles, were $65.8 million, a 20 percent increase compared to the third quarter of fiscal 2001, and a 47 percent decrease from the prior year’s fourth quarter. Net earnings and diluted earnings per share reflecting these charges and benefits were $23.0 million and $.09 for the fourth quarter of fiscal 2001, as compared to $98.0 million and $.39 for the fourth quarter of fiscal 2000, respectively.

Total revenues in fiscal 2001 were $1,504.0 million, a 13 percent decrease from total revenues of $1,719.2 million in fiscal 2000. Fiscal 2001 net earnings and diluted earnings per share, excluding special charges and amortization of goodwill and intangibles and a third quarter real estate gain, were $198.3 million and $.79, respectively. This represented a decline of 55 percent, compared to earnings and diluted earnings per share in fiscal 2000 of $444.6 million and $1.76, excluding special charges and amortization of goodwill and intangibles. Net earnings and diluted earnings per share reflecting these charges and benefits were $42.4 million and $.17 for fiscal 2001, as compared to $242.5 million and $.96 in fiscal 2000.

I am pleased that our significant progress continued into the fourth quarter, said Bob Beauchamp, president and CEO of BMC Software. We experienced sequential revenue growth compared to the third quarter in every major geographic region with broad strength across our product lines. During the fourth quarter, we added $34 million in license revenue to our deferred revenues, as we continue to seek to build a more predictable revenue stream and provide customers with more flexibility for their changing buying patterns. Our strong recovery in the second half of fiscal 2001 provides good momentum as we enter our new fiscal year.

Total license revenues increased 13 percent compared to the third quarter of fiscal 2001 and decreased 21 percent in the fourth quarter of fiscal 2001 compared to the fourth quarter of fiscal 2000. Total distributed systems license revenues increased 26 percent compared to the third quarter of fiscal 2001 and decreased 19 percent compared to the fourth quarter of fiscal 2000. Total mainframe license revenues increased 4 percent compared to the third quarter of fiscal 2001 and decreased 23 percent compared to the fourth quarter of fiscal 2000. Maintenance revenues increased 1 percent compared to the third quarter of fiscal 2001 and increased 4 percent compared to the fourth quarter of fiscal 2000. Professional Services revenues increased 20 percent compared to the third quarter of fiscal 2001 and increased 63 percent compared to the fourth quarter of fiscal 2000.

Fourth Quarter Fiscal 2001 Highlights

Acquired Perform, SA, a French web-based network optimization software developer, which will extend BMC Software’s market leading ability to provide true end-to-end Service Level Management from an application services perspective.

Reinforced commitment to Application-Centric Storage Management (ACSM) initiative by forming the Professional Services Storage Practice. Through this industry-leading strategic practice group, current and potential BMC Software customers can now have all their storage needs — from solution development to product implementation — addressed through one vendor.

Announced a component of the ACSM initiative, PATROL(R) Storage Network Manager, which is a comprehensive storage network management tool that provides a single, integrated point of control for monitoring, management, control and automation of storage elements across an enterprise.

Collaborated with Microsoft Corporation to provide recovery capabilities to BMC Software’s existing solution for Microsoft’s SQL Server 2000 and enhancements to BMC Software’s SQL Server database recovery offering by providing advanced transaction-level analysis and recovery.

Announced the new PATROL for Sunä Automated Dynamic Reconfiguration (ADR) solution designed to proactively manage domain resources for the Sun Enterpriseä 10000 server.

Announced PATROL for Ariba Buyer, which allows customers to manage their complex ebusiness infrastructure from a single point of control.

Announced the opening of its Asia Pacific R&D, Distribution & Production Center in Singapore. The new facility will provide customers with quicker turnaround time on all product deliveries, local Asian production of new products and reduced time-to-market.

Moved the trading of its common stock from the Nasdaq to the New York Stock Exchange (NYSE) under the ticker symbol BMC.