BMC Software develops a program for rapid growth; small firm pushes research and development, exploits telemarketing

Article Abstract:

BMC Software Inc (Sugar Land, TX), software supplier for IBM mainframes, is profitable and growing fast, even while the computer industry overall is doing poorly. Established in 1980, the software publisher makes 52 products priced between $25,000 and $150,000. Typical BMC products facilitate communication between mainframes and terminals or help to manage data bases. BMC successfully marries technical expertise to a telemarketing strategy that saves time and cuts costs. The company's research and development is geared to its telemarketing efforts, on which it spends only 30 percent of its revenue, compared to the typical 50 percent allotted to marketing. Products are made to stand out because of specific performance capabilities so that they are easy to explain on the telephone. BMC is careful to listen to customers, keeping development costs down by taking customer needs and complaints seriously. Chmn John Moores credits venture capitalist Jacqueline Morby of TA Associates for her help and good advice.

Investors, not elsewhere classified, Software, Industrial research, Telemarketing, Growth (Physiology), Mainframe computers, BMC Software Inc., BMCS, Research and Development, Growth, Outlook, Mainframe Computer, Marketing Strategy, Computer Software Industry, Stock, company profile, Moores, John, Morby, Jacqueline, TA Associates

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Slew of small computer companies are set to go public

Article Abstract:

Several small computer companies are planning public offerings despite a lull in the computer market due to the recession. Between 50 and 60 companies plan to go public in the next six months with plans to raise more than $1 billion. There is a trend toward growing computer-related investments as money managers believe they can find bargains in a hurting industry. Conductus Inc is going public in April 1992 and hopes to raise $30-million in new capital. The company was formed in 1987 and has over $8 million in losses. Small computer companies raised $156.5 million in new issues in February 1992 which is more than the biotechnology and health care industries. Venture capitalists have already begun to boost investment activity in small computer companies.

Electronic computers, Commercial physical research, Planning, Computer industry, Finance, Conductus Inc., Financial Analysis Software, Market Analysis, Economics of Computing, Financing, Public Offerings

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Software company pulls off a trick metamorphosis; sales jump as Powersoft Corp. switches niches, to tools for developers

Article Abstract:

Burlington, MA-based Powersoft Corp has successfully transformed itself from a second-tier designer of software for manufacturing operations to a leader in the fast-growing field of application development software for microcomputers. Powersoft founder and CEO Mitchell E. Kertzman says sales are jumping by 30 percent per quarter and should surpass $17 million for FY 1992. Powersoft made the successful switch by acting as a corporate venture capitalist. In 1988, the company hired an entrepreneur, former Cullinet Software research director Dave Litwack, and invested $3 million in Litwack's efforts to develop design tools. PowerSoft's PowerBuilder software has proven so successful that the company has sold off its old business.

Supply and demand, Application development software, Program development software, Sales, Market Entry, Powersoft Corp., PowerBuilder (Application development software)

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