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BEA Approves $500 Million Increase to Stock Buyback Plan
SAN JOSE, Calif., May 16 /PRNewswire-FirstCall/ -- BEA Systems, Inc.,
(Nasdaq: BEAS) a world leader in enterprise and communications
infrastructure software, today announced certain financial results for the
fiscal first quarter ended April 30, 2007. BEA reported first quarter total
revenues of $345.8 million, up 7% from last year's first quarter. BEA
reported first quarter license fees of $114.6 million, down 13% from a year
ago, and services revenue of $231.2 million, up 21% from a year ago. BEA
reported first quarter cash flow from operating activities of $95.1
million, down 7% from a year ago. BEA reported a balance of cash, cash
equivalents, short-term investments and restricted cash of $1.3 billion.
BEA also reported deferred revenues of $434.7 million, up 19% from a year
ago.
BEA is not providing full GAAP or non-GAAP financials for the first
quarter due to the previously announced voluntary internal review of BEA's
historical stock option grants, which has been conducted by the Audit
Committee of BEA's Board of Directors with the assistance of independent
legal counsel. The outcome of that review will require us to change our
accounting treatment of certain stock option grants, which will have a
material adverse effect on our results of operations for certain historic
periods and may have a material adverse effect on our results of operations
for the first quarter and certain subsequent periods.
"In the first quarter, we saw a tough selling environment in the
Americas, and we made several changes to the Americas field organization.
We aligned the organization correctly for the SOA opportunity; however, the
changes impacted us in the short-run beyond our expectations. Geographies
outside the US performed well, and our Business Interaction Division had a
very strong quarter, especially in the Americas, with both their AquaLogic
User Interaction and Business Process Management products," said Alfred
Chuang, BEA's founder, chairman and chief executive officer. "SOA is an
architecture- led sale, and requires a different sales process than
development-led projects. There is a platform shift taking place, and BEA
is well-poised to lead that shift. We are aligning our field organization
with the requirements of the SOA market."
"We are well positioned to continue our leadership position in the SOA
market, because of our innovative product offerings. BEA is delivering an
SOA fabric that provides customers with the ability to scale applications
as needed, to support Web 2.0 technologies, and the ability to consume and
correlate real-time events and decision-support systems. We believe we have
the strongest and most innovative SOA platform on the market," Chuang said.
"I am very optimistic about BEA's future, and I am pleased to announce that
our Board of Directors has authorized an additional $500 million for our
stock buyback program, giving us a total authorization of approximately
$620 million."
BEA Delivers Business Results for Key Customers and Expands
Partnerships
Key customer, partner and end-user agreements signed in the quarter
included Agire Mortgage, Bank BPH, BHF Bank, BT, Cablevision, Canadian Real
Estate Association, Cardinal Health, Carfax, China Eastern Aviation Import
and Export, China Mobile, China Unicom, CHS, Circuit City Stores, City of
Chicago, Com Hem, ConAgra Foods, Corporate Express, COSMOTE, Deutsche Bank,
Edmunds, Emirates Airlines, Fortis Bank, Hilton Hotels, Itaipu Binacional,
Lifeline Systems, M. W. Kellogg, Ministerio de Sanidad y Consumo, National
Stock Exchange of India, NCS Pearson, Petrobras, Polis Direct, Proquire,
Quintiles Transnational, Sainsburys, Seagate Technology, Solectron, Sony
Pictures, Tata Consultancy Services, UK Council for the Central Laboratory
of the Research Councils, UK North West Development Agency, US Army, US
DCGS, US House of Representatives, Verisign, Virgin Atlantic, Visanet,
Vodafone, Wachovia, Warner Brothers Entertainment, WebEx Communications,
and Wellington Management.
New, renewed or expanded relationships were entered into with VARs,
hardware OEMs, systems integrators, ASPs and ISVs, including Amberpoint,
Amdocs, Atreus, CA, Cedar Point, Cryptologic, DiagnosisOne, EMC, HP,
Iperia, Opsware, Oracle, PanGo Networks, QPass, Reuters, Transware, Verid,
Vurv, and Wipro.
About BEA Systems, Inc.
BEA Systems, Inc. is a world leader in enterprise and communications
infrastructure software. BEA's SOA 360o platform is the industry's most
unified SOA platform for business transformation and optimization, in order
to improve cost structures and grow new revenue streams. Information about
how BEA is enabling customers to achieve Business LiquidITy(TM) can be
found at bea.com.
Investors will have the opportunity to listen to BEA's earnings
conference call over the Internet on the investor information page of the
BEA Web site at http://ir.bea.com. The Internet broadcast will be available
live, and a replay will be available following completion of the live call
for 365 days thereafter. In addition, investors will have the opportunity
to access a telephone replay of the call through May 23, 2007, by dialing
(706) 645-9291, access code 5374138.
NOTE: BEA, BEA AquaLogic, BEA eLink, BEA WebLogic, BEA WebLogic Portal,
BEA WebLogic Server, Connectera, Compoze Software, Jolt, JoltBeans,
JRockit, SteelThread, Think Liquid, Top End, Tuxedo, and WebLogic are
registered trademarks of BEA Systems, Inc. BEA Blended Application
Development, BEA Blended Development Model, BEA Blended Strategy, BEA
Builder, BEA Guardian, BEA Manager, BEA MessageQ, BEA microService
Architecture, BEA SOA 360, BEA Workshop, BEA WorkSpace 360, Signature
Editor, Signature Engine, Signature Patterns, Support Patterns, Arch2Arch,
Arch2Arch Advisor, Dev2Dev, Dev2Dev Dispatch, Exec2Exec, Exec2Exec Voice,
IT2IT, IT2IT Insight, Business LiquidITy, and Liquid Thinker are trademarks
of BEA Systems, Inc. BEA Mission Critical Support, BEA Mission Critical
Support Continuum, BEA SOA Self Assessment, and Fluid Framework are service
marks of BEA Systems, Inc. All other company and product names may be the
subject of intellectual property rights reserved by third parties. All
other trademarks are the property of their respective companies.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, including
statements regarding the outcome of the stock option review and the
resulting impact on our accounting treatment of certain stock option grants
and our results of operations for various periods; BEA's positioning in the
marketplace; and BEA's future. Forward-looking statements are subject to
risks and uncertainties that may cause actual results to differ materially
from those contemplated by the forward-looking statements. Such risks and
uncertainties include, but are not limited to, that the internal review of
historical stock option grants may continue to prevent us from filing our
periodic reports with the Securities and Exchange Commission ("SEC") and/or
result in our being de- listed by Nasdaq; quarterly fluctuations in
customer spending due to economic, geopolitical, competitive and other
factors; dependence on the growth of the markets for BEA's products,
especially the markets for SOA, service infrastructure, VOIP,
telecommunications and RFID software, and overseas markets such as China;
changes in the standards or technologies used in the SOA,
telecommunications and portal markets that could render our products less
competitive; declines in spending by the telecommunications industry as a
result of consolidation or adverse economic conditions; our dependence on
large transactions, particularly those consummated at the end of our
quarters; dependence on new product introductions and enhancements; the
introduction by competitors of new products and pricing strategies; market
acceptance of BEA's enhanced product portfolio; BEA's ability to integrate
new technology and personnel as a result of acquisitions; the length of
BEA's sales cycle; the acceptance of BEA's products by channel partners;
the success of BEA's channel partners; rapid technological change;
potential software defects (particularly with regard to newly introduced
and planned products); BEA's ability to retain and hire key personnel;
misinterpretations resulting from the provision of non-GAAP financial
information; significant leverage and debt service requirements; and other
risks indicated in our filings with the SEC. For more details, please refer
to our SEC filings, including our Annual Report on Form 10-K for the fiscal
year ended January 31, 2006, our Quarterly Report on Form 10-Q for the
quarter ended April 30, 2006, as well as similar disclosures in subsequent
SEC filings. The forward-looking statements and risks stated in this press
release are based on information available to BEA today. BEA assumes no
obligation to update them.
BEA SYSTEMS, INC.
Schedule of Consolidated Revenues
(In thousands)
(unaudited)
Three Months Ended
April 30,
2008 2007
Revenues:
License Fees $114,647 $132,404
Services 231,198 190,832
Total revenues $345,845 $323,236
BEA SYSTEMS, INC.
Schedule of Other Income and Expense
(In thousands)
(unaudited)
Three Months Ended
April 30,
2008 2007
Interest and other, net $13,448 $3,835
Net gains on minority interest in equity
investments 910 10,972
Net gains on retirement of convertible
subordinated notes -- 818
Total Interest and other, net $14,358 $15,625
BEA SYSTEMS, INC.
Schedule of Cash and Cash Equivalents, Restricted Cash and Investments
(In thousands)
(unaudited)
April 30, April 30,
2008 2007
Cash and cash equivalents $942,917 $971,965
Short-term investments 342,350 297,325
Short-term restricted cash 1,413 1,666
Total cash $1,286,680 $1,270,956
BEA SYSTEMS, INC.
Schedule of Deferred Revenues
(In thousands)
(unaudited)
April 30, April 30,
2008 2007
Deferred revenues $434,722 $365,003
BEA SYSTEMS, INC.
Schedule of Days Sales Outstanding
(unaudited)
April 30, April 30,
2008 2007
Days sales outstanding 79 68
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