And here you go!!!
BEA Reports Record First Quarter Financial Results as Year-over-Year License Revenue Growth Rate Accelerated to 89 Percent
BEA Delivered 22nd Consecutive Quarter of Record Revenues; Cash Flow from Operations Grew to a Record $88 Million
SAN JOSE, Calif., May 15, 2001 /PRNewswire via COMTEX/ -- BEA Systems, Inc. (Nasdaq: BEAS chart, msgs), one of the world's leading e-business infrastructure software companies, today announced its 22nd straight quarter of record revenues. For the first quarter ended April 30, 2001, BEA reported revenues of $257.2 million, up 67 percent from $153.7 million for the same period in the prior year. BEA reported record first quarter license fees of $161.2 million, up 89 percent from $85.2 million in the first quarter of last fiscal year. Full details on BEA's reported results are on page four of this release.
BEA had pro forma operating income for the first quarter of $46.0 million, up 246 percent from $13.3 million for the first quarter of last fiscal year. BEA had pro forma net income for the first quarter of $35.9 million, up 190 percent from $12.4 million for the first quarter of last fiscal year. BEA's pro forma net income per share was $0.08 for the first quarter up 167 percent from $0.03 per share in the first quarter of last fiscal year. BEA had record cash flow from operations of $87.9 million, up 210 percent from $28.3 million for the first quarter of the prior fiscal year. Pro forma results exclude acquisition-related expenses, employer payroll taxes on stock option exercises, and net gains on investments in securities. The impact of pro forma adjustments is summarized on page five of this release. For full details on BEA's reported results, see the financial tables accompanying this release.
(In thousands, except per share data)
(unaudited) For the Three Months Ended
April 30, Jan. 31, April 30,
2001 2001 2000
Current Prior Year
Quarter Quarter Ago
Revenues $257,163 $256,043 $153,682
License fees $161,193 $158,937 $85,239
Pro forma operating income (a) $45,984 $55,872 $13,288
Pro forma operating margin (a) 17.9% 21.8% 8.6%
Pro forma net income (a)(b) $35,930 $43,768 $12,369
Pro forma net income per
share (a)(b)(c) $0.08 $0.10 $0.03
Pro forma shares
outstanding (b)(c) 424,620 431,620 418,310
(a) Adjusted to exclude acquisition-related charges including amortization
of acquired intangible assets, merger-related costs, and the write-off
of acquired in-process research and development; employer payroll
taxes on stock option exercises; and net gain on investments in
securities (see page five of this release). Without adjusting for
these items, net income (loss) is $20,624, $18,953 and $(12,383), and
income (loss) per share is $0.05, $0.04 and $(0.03) in the periods
presented.
(b) Amounts presented on a pro forma basis, assuming a tax rate of
30 percent.
(c) Adjusted to reflect a two-for-one stock split effected as a stock
dividend on April 24, 2000.
"In the first quarter, our year-over-year license revenue growth rate accelerated to 89 percent, compared to 52 percent in the first quarter last year," stated Bill Coleman, BEA founder, chairman and CEO. "Demonstrating the continued adoption of WebLogic as the platform for e-business, the year-over-year growth rate of our WebLogic revenue remained in triple digits, as we continued to gain market share. These growth rates reflect the continued success of both our direct sales force and our indirect channels program," said Coleman. "Our indirect channels program once again exceeded our goals. For example, we set a goal of training 4,000 consultants in four quarters, and we exceeded that goal by training more than 4,200 consultants in three quarters. As expected, the success of the channels program allowed us to grow our higher margin license revenue faster than services revenue, by leveraging the consulting capacity of our partners to increase the number of projects built on our products."
Commenting on the continued success of BEA's direct sales force, Coleman said, "I am extremely proud of our sales force, which executed very well in our seasonally slower first quarter. Bookings for the quarter were in line with our expectations, based on our pipeline at the beginning of the quarter. The value our BEA WebLogic E-Business Platform provides to our customers allowed us to achieve record WebLogic revenues while maintaining our pricing," Coleman added.
Coleman concluded, "With the new and enhanced products we introduced recently, as well as new product introductions planned for this summer, we are raising the value we provide our customers while increasing our technology lead. We continued aggressively hiring in our sales force and our R&D teams, and we improved our management structure with promotions and key hires, which should enhance our ability to capitalize on the market opportunity. We remain excited and confident about our continued success, as more companies turn to BEA to help them future-proof their businesses by building flexible, personalized, and reliable Web-based systems."
Key customer and partner deals for the quarter included AGORA S.A., Bear Stearns, BT OpenWorld, CAJA Madrid, Citibank, Cox Interactive Media, Depository Trust Company, Elf, Franklin Templeton Companies, Knight Ridder, Kredyt Bank, Marsh & McLennan, Mizuho Securities, Morgan Stanley Online, Nextel, NTT DoCoMo, PeopleSoft, Telefonica Moviles, Unit Trust of India, United Parcel Service, Verizon, Welfare Case Data Systems, and Wells Fargo. New or expanded relationships were also entered into with hardware, systems integrator, ASP and ISV vendors such as Agile Software, Armature, Atoga, Atos Origin, B2B Markets, Broadvision, Captura, Compaq, Deloitte Consulting, eGain Communications, Espial, Exodus, Kana, Peregrine Systems, SCT, Spotfire, SunGard Data Systems, Synchronoss, and Vendavo.
About BEA
BEA Systems, Inc. (Nasdaq: BEAS chart, msgs) is one of the world's leading e-business infrastructure software companies, with more than 10,000 customers around the world, including the majority of the Fortune Global 500. BEA and its WebLogic(R) brand are among the most trusted names in e-business. Businesses built on the award-winning BEA WebLogic E-Business Platform(TM) are reliable, highly scalable, and poised to bring new services to market quickly. BEA's e-business platform is the de facto standard for more than 1,900 systems integrators, independent software vendors (ISVs) and application service providers (ASPs) to provide complete solutions that fast-track and future-proof e-businesses for high growth and profitability. Headquartered in San Jose, Calif., BEA has 92 offices in 32 countries and is on the Web at www.bea.com .
Investors will have the opportunity to listen to BEA's earnings release conference call over the Internet through Street Events, Inc., at streetevents.com or on the investor information page of BEA's Web site at bea.com . The call will be available live on both the Street Events and BEA Web sites beginning today at 2 p.m. PDT, and a replay will be available immediately following completion of the live call and for up to 30 days thereafter. In addition, investors will have the opportunity to access a telephone replay of the call through May 22, 2001 by dialing 703-925-2435, access code 5204250.
NOTE: BEA and WebLogic are registered trademarks of BEA Systems, Inc. BEA WebLogic E-Business Platform is a trademark of BEA Systems, Inc. All other company and product names may be trademarks of the company with which they are associated.
Legal Notice Regarding Forward-Looking Statements
Some of the statements in this press release are forward-looking, including statements regarding future market opportunity, future financial performance, new feature and product introductions, and performance of BEA's indirect channel. BEA's actual results could differ materially from those expressed in any forward-looking statements. Risks and uncertainties BEA faces that could cause results to differ materially include risks associated with: quarterly fluctuation in customer spending due to economic and other factors, dependence on growth of the markets for BEA's products, competition, dependence on acceptance of BEA's products by channel partners, dependence on success of BEA's channel partners, market acceptance of BEA's products, integration of past and future acquisitions, length of BEA's sales cycle, dependence on hiring key personnel, rapid technological change, dependence on new product introductions and enhancements, potential software defects, and significant leverage and debt service requirements. Readers should also refer to the section entitled "Factors That May Impact Future Operating Results" on pages 18 through 27 of BEA's Annual Report on Form 10-K for the fiscal ended January 31, 2001 and similar disclosures in subsequent BEA periodic SEC reports. 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.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share data)
(unaudited)
Three months ended
April 30,
2001 2000
Revenues:
License fees $161,193 $85,239
Services 95,970 68,443
Total revenues 257,163 153,682
Cost of revenues:
Cost of license fees 5,652 3,775
Cost of services 50,745 40,413
Amortization of certain acquired
intangible assets 6,413 9,983
Total cost of revenues 62,810 54,171
Gross profit 194,353 99,511
Operating expenses:
Sales and marketing 108,156 68,695
Research and development 29,525 18,879
General and administrative 18,182 10,864
Amortization of goodwill 16,009 12,195
Acquisition-related charges - 2,200
Total operating expenses 171,872 112,833
Income (loss) from operations 22,481 (13,322)
Interest income (expense) and
other, net 13,717 4,146
Income (loss) before provision for
income taxes 36,198 (9,176)
Provision for income taxes 15,574 3,207
Net income (loss) $20,624 $(12,383)
Net income (loss) per share:
Basic $0.05 $(0.03)
Diluted $0.05 $(0.03)
Shares used in computing net
income (loss) per share:
Basic 391,700 366,950
Diluted 424,620 366,950
BEA SYSTEMS, INC.
PRO FORMA STATEMENTS OF OPERATIONS
IMPACT OF PRO FORMA ADJUSTMENTS ON REPORTED NET INCOME (LOSS)
(In thousands, except for per share data)
(unaudited)
For the Three Months Ended
April 30,2001
As Reported Adjustments* As Adjusted
Revenues $257,163 $- $257,163
Cost of revenues 62,810 (6,787) 56,023
Gross profit 194,353 6,787 201,140
Operating expenses 171,872 (16,716) 155,156
Income (loss) from operations 22,481 23,503 45,984
Interest income (expense) and other,
net 13,717 8,372 5,345
Income (loss) before provision for
taxes 36,198 15,131 51,329
Provision for income taxes 15,574 (175) 15,399
Net income (loss) $20,624 $15,306 $35,930
Net income (loss) per share $0.05 $0.08
Pro forma shares outstanding** 424,620 424,620
For the Three Months Ended
April 30, 2000
As Reported Adjustments* As Adjusted
Revenues $153,682 $- $153,682
Cost of revenues 54,171 (11,121) 43,050
Gross profit 99,511 11,121 110,632
Operating expenses 112,833 (15,489) 97,344
Income (loss) from operations (13,322) 26,610 13,288
Interest income (expense) and other,
net 4,146 (236) 4,382
Income (loss) before provision for
taxes (9,176) 26,846 17,670
Provision for income taxes 3,207 2,094 5,301
Net income (loss) $(12,383) $24,752 $12,369
Net income (loss) per share $(0.03) $0.03
Pro forma shares outstanding** 366,950 418,310
* The adjustments represent the reversals of acquisition related
charges including the write-off of acquired in-process research and
development, merger-related costs, amortization of acquired intangible
assets, premium paid on conversion of notes, net gain on investments in
securities and employer payroll taxes on stock options. The pro forma
adjustments also reflect the impact of these charges on the provision
for income taxes.
** Shares reflect the April 24, 2000 two-for-one stock split.
BEA SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
April 30, January 31,
2001 2001
(unaudited) (*)
ASSETS
Current assets:
Cash and cash equivalents $700,091 $907,635
Restricted cash 202,550 4,998
Short-term investments 9,884 33,294
Accounts receivable, net 205,790 214,706
Other current assets 30,998 46,258
Total current assets 1,149,313 1,206,891
Property and equipment, net 52,598 51,223
Acquired intangible assets, net 164,229 190,692
Long-term restricted cash 140,361 -
Other long-term assets 135,847 143,530
$1,642,348 $1,592,336
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued
liabilities $191,366 $172,632
Deferred revenues 222,306 203,947
Current portion of notes payable
and other obligations 9,781 13,321
Total current liabilities 423,453 389,900
Notes payable and other long-term
obligations 7,118 35,011
Convertible subordinated notes 561,421 561,421
Stockholders' equity:
Common stock 819,290 794,119
Accumulated deficit (165,249) (185,873)
Notes receivable from stockholders (198) (198)
Deferred compensation (396) (523)
Accumulated other comprehensive
loss (3,091) (1,521)
Total stockholders' equity 650,356 606,004
$1,642,348 $1,592,336
(*) Derived from audited consolidated financial statements.
For more information on BEA Systems, Inc. at no cost,
please call 1-800-PRO-INFO(U.S.) or 908-544-2850(Int'l), ticker symbol
BEAS. |
