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  "documentTitle": "BMC Software (BMC)",
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  "authorName": "Elliott Management",
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  "notes": "Uses a comparison of 'As Reported' vs 'Normalized' margins to expose a performance gap.",
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      "text": "BMC's reported operating margin is higher than its closest peer CA, however, expensing all of BMC's R&D and stock-based compensation presents a less flattering reality",
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      "text": "BMC's reported operating margin is higher than its closest peer CA, however, expensing all of BMC's R&D and stock-based compensation presents a less flattering reality. Actually indicates a margin shortfall to CA. ESM reported operating margin of only 21% despite over $1 billion in revenues. BMC has only now started to generate positive Professional Services gross profits, but 0.8% gross margin is still disappointing. Meanwhile, BMC's 'Big 3' peers are generating an average operating margin of 11%.",
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      "text": "operating margin: 27.7%",
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      "text": "Source: Capital IQ, Company Filings. 1-4: Explanatory notes on margin calculations.",
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