February 27, 2014
And given just how high gross margins are for both software maintenance and hardware maintenance, the future for operating margin improvement looks strong as well. Further, while product gross margins were perhaps less than some observers might have wished, operating margins continued to increase, and EPS exceeded the prior First Call consensus by $.08. Some of that beat is a function of the “true up” of previously accrued taxes to take account of the new full year tax rate estimate of 18%.
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