{ "docId": "019dd923-622c-750b-8b9c-2e2276933d3a", "docSlug": "b3d6851b3cc0", "documentTitle": "BMC Software (BMC)", "authorId": "02_Elliott_Management", "authorName": "Elliott Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2012-05-31 00:00:00", "orientation": "portrait", "aspectRatio": 0.70665085, "pageNumber": 25, "pageCount": 72, "prevPage": 24, "nextPage": 26, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 4, "notes": "Uses CEO quotes to highlight the gap between management's stated strategy and actual financial performance.", "elementsJson": [ "headline_text", "paragraph", "bar_chart_vertical", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9c-2e2276933d3a/25", "deckHref": "/decks/019dd923-622c-750b-8b9c-2e2276933d3a", "deckJsonHref": "/decks/019dd923-622c-750b-8b9c-2e2276933d3a.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9c-2e2276933d3a#slide-25", "components": [ { "bbox": null, "kind": "callout", "text": "Despite increasing investments in Sales and Marketing, BMC has failed to generate meaningful ESM revenue growth", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-25b6-7431-a27c-432591f4a60a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.3, "x": 0.55, "y": 0.24 }, "kind": "chart", "text": "LTM REVENUE GROWTH", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0b98a99c-5c46-4ca4-be7a-689230a55216", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.2, "w": 0.3, "x": 0.11, "y": 0.24 }, "kind": "chart", "text": "LTM SALES & MARKETING AS % REVENUE", "attrs": null, "subkind": "bar-vertical", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0e28be1a-0be0-4d0e-9297-fcff70407d52", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "LTM Revenue Growth: 2.3%", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-25b6-7431-a27c-4bbcb41bc35e", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.8, "x": 0.11, "y": 0.16 }, "kind": "paragraph", "text": "Despite increasing investments in Sales and Marketing, BMC has failed to generate meaningful ESM revenue growth", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fd7b0e59-a486-4e1a-b2ff-851f1d71e6e5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.8, "x": 0.11, "y": 0.56 }, "kind": "quote", "text": "It [Fiscal Year 2011] was a year in which we demonstrated our ability to achieve these results while at the same time making the investments in internal development, sales and services necessary to increase our competitive advantage", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "98d5f47d-c781-4047-97fb-fc7ae21c7bc0", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.8, "x": 0.11, "y": 0.77 }, "kind": "quote", "text": "These [Fiscal Year 2011] strong results underscore the success of our strategy... to accelerate top line growth. These initiatives are clearly paying off and we expect to reap additional benefits in 2012 and beyond", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9d93a0c1-ac5f-48ae-a577-5019b243ef95", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.8, "x": 0.11, "y": 0.66 }, "kind": "quote", "text": "It [Fiscal Year 2011] was a year in which we transitioned from being a strong, moderate growth company to one characterized by sustained, accelerating growth led by a solid Enterprise Service Management (ESM) engine", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e5a5f553-b802-48d8-a5b4-abd8eaf8573b", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"It [Fiscal Year 2011] was a year in which we demonstrated our ability to achieve these results while at the same time making the investments in internal development, sales and services necessary to increase our competitive advantage\" — Bob Beauchamp (2011 Annual Report); \"It [Fiscal Year 2011] was a year in which we transitioned from being a strong, moderate growth company to one characterized by sustained, accelerating growth led by a solid Enterprise Service Management (ESM) engine capable of delivering ongoing double-digit growth\" — Bob Beauchamp (2011 Annual Report); \"These [Fiscal Year 2011] strong results underscore the success of our strategy over the last several years to make disciplined investments that enhance our market leadership and enable us to accelerate top line growth. As part of this strategy, we strengthened our sales force, increased internal R&D efforts related to cloud and other major technology trends, selectively acquired complementary technologies in rapidly growing market segments and bolstered our strategic partnerships. These initiatives are clearly paying off and we expect to reap additional benefits in 2012 and beyond\" — Bob Beauchamp (Q4 2011 Earnings Conference Call)", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-25b6-7431-a27c-462e7679c5c9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.2, "x": 0.11, "y": 0.92 }, "kind": "source-note", "text": "Source: Company Filings; Note: LTM as of 03/31/12", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "9eeab1c0-fb63-4fc3-83b9-bb5eddf9c999", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.4, "x": 0.11, "y": 0.11 }, "kind": "title", "text": "Management Has Failed to Execute", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "42c289a2-a863-48e8-a449-54a0ef5d3021", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "CEO quote contradiction", "slug": "ceo-quote-contradiction", "agent": null, "layer": "slide", "matchId": "2637c122-161d-4134-bc53-f94e9d5eec72", "evidence": "\"It's not all going to be Software as a Service, I've met no CIOs who think that\" — Bob Beauchamp (2007, Interview with The Australian)", "confidence": 0.8 } ], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "ef79f3ed-2bae-4049-aa60-39fc852fac2e", "evidence": "Juxtaposition of financial data against management's optimistic quotes to prove failure.", "confidence": 0.95 } ], "arcBeats": [ { "to": 31, "from": 23, "beatId": "86f2b500-213c-43da-93b4-133a23180c6d", "arcName": "Problem-Agitate-Solution", "arcSlug": "problem-agitate-solution", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "Multiple slides (23-31) expose management's failed execution", "position": 1, "confidence": 0.9, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }