BEA Reports Second Quarter Financial Results; Reports Market Share Gains and Str
/FROM PR NEWSWIRE SAN FRANCISCO 415-543-7800/
TO BUSINESS AND TECHNOLOGY EDITORS:
BEA Reports Second Quarter Financial Results; Reports Market Share
Gains and Strong Execution Despite Challenging IT Spending Environment
Alfred Chuang Promoted to Chairman as BEA Continues Innovating
In Web Services, Application Infrastructure, Portal and Integration
SAN JOSE, Calif., Aug. 14 /PRNewswire-FirstCall/ --
BEA Systems, Inc. (Nasdaq: BEAS), the world's leading application
infrastructure software company, today announced results of its fiscal second
quarter. For the second quarter ended July 31, 2002, BEA reported total
revenues of $225.9 million, including license fees of $124.1 million. In the
quarter, BEA completed nearly 2,400 transactions and generated $32.2 million
in cash flow from operations.
BEA also announced that BEA founder, President and CEO Alfred Chuang has
been promoted to Chairman of the Board, succeeding BEA founder Bill Coleman,
who will continue in his capacity as a member of the Board of Directors.
Second Quarter Results
For the second quarter, BEA reported operating income of $27.3 million on
a generally accepted accounting principles ("GAAP") basis and an operating
margin of 12.1 percent. BEA reported GAAP net income of $20.2 million and
diluted net income per share of $0.05 for the second quarter. BEA confirmed
that its CEO and CFO will certify the Company's Report on Form 10-Q containing
its GAAP results for the quarter when the report is filed with the SEC in mid
September, in accordance with new legal requirements.
For the second quarter, BEA reported pro forma operating income of
$35.5 million and pro forma operating margin of 15.7 percent. BEA reported pro
forma net income of $25.9 million and pro forma diluted net income per share
of $0.06 for the second quarter. Pro forma results exclude
acquisition-related expenses, employer payroll taxes on stock options, net
gains or losses on investments in equity securities, and other non-recurring
charges. A reconciliation of pro forma adjustments is summarized on pages six
and seven of this release. For full details on BEA's reported results, see
the financial tables accompanying this release.
"We saw an improvement in our business throughout the second quarter, and
we enter Q3 with a strong pipeline," stated Alfred Chuang. "Although the
IT spending environment continues to be challenging, we had a solid quarter,
demonstrating that the market pendulum is swinging toward custom development,
scalable architecture and secure, reliable infrastructure. The wireless
Internet space continues to grow, and the BEA WebLogic Enterprise Platform
continues to be the infrastructure software choice for these projects."
"What we see in the application server market gives us every reason to
believe that we are taking customers and market share from the competition and
that we continue to widen our product lead," Chuang continued. "This quarter,
BEA gained market share by winning more than 200 direct head-to-head
competitions with our primary competitor, including more than 120 replacements
or displacements. In some cases, we won replacement deals after customers
couldn't get an application in production for almost a year after purchasing
our competitor's product. We even replaced our competitor's infrastructure in
mainframe deployments, our competitor's core business. Customers who choose
BEA recognize that there are significant costs associated with our
competitor's product -- lost business opportunities from delayed and failed
projects, increased development costs, increased hardware costs and more. The
enormous hidden costs associated with our competitor's product have allowed us
to win on the total cost of a project, even when they give away their
software."
"BEA's focused effort in R&D is paying off, as demonstrated by the market.
We delivered eight new products in 90 days, including the first versions of
WebLogic Platform, WebLogic Workshop and WebLogic JRockit JVM," Chuang noted.
"With WebLogic Server, WebLogic Workshop and our work on the standards bodies,
we are the leader in Web services."
"Now, we are in the process of radically changing the integration market,"
Chuang continued. "This quarter, we delivered a new version of WebLogic
Integration and now offer more than 30 BEA branded, sold and supported JCA
adapters, as well as more than 150 adapters delivered by our partners. BEA is
investing heavily in the integration business. Over the last two quarters,
we've assembled a team of industry experts, including several key executives,
developers and senior sales representatives from the leading pure-play EAI
vendors. The strategy developed under their leadership has received
enthusiastic reviews from some of our best customers and partners. We intend
to lead the integration market by radically reducing the cost and complexity
of integration solutions."
"We are also driving down the cost and complexity of Java and Web services
systems, which broadens our market. Our Intel, HP, Linux and WebLogic
Workshop strategies are helping make this a reality," Chuang concluded. "Our
work continues with Intel, optimizing our performance on their 64-bit
architecture. Simpler operating systems, mass market chip sets and easy to
use development tools like WebLogic Workshop make Java accessible by more
developers and cost-effective for more projects. We are working with our
partners to make Java easier and less expensive."
Alfred Chuang Promoted to Chairman
"When Bill, Ed and I founded BEA seven years ago, we focused on delivering
exceptional value to customers," stated Chuang. "Together we won more than
13,000 customers, built a worldwide network of partnerships with the world's
leading companies and grew annual revenues to over $900 million. Bill came to
the board earlier this year and indicated that he felt his job of nurturing
the company through its initial years was now completed and he wished to
concentrate more fully on his several important civic efforts. We look
forward to Bill's continued efforts in building and maintaining relationships
with our customers and partners, and continued service on our Board of
Directors."
Coleman said, "I am proud of what we've accomplished at BEA in a short
time and I know I leave management of the company in the exceptionally capable
hands of my good friend and partner, Alfred Chuang. I have watched his tenure
as CEO with admiration, and I know the company is in excellent strategic and
operational shape. I have some very specific ideas about my next projects,
which will be outside of the business world." Coleman will remain a board
member and will assume the role of BEA's Chief Customer Advocate, involved in
customer relationships, strategic alliances and sales. Additional details
regarding Mr. Coleman's continuing relationship with the Company are in a
Report on Form 8-K filed with the SEC today.
Key Customer and Partner Deals
Key customer and partner deals for the quarter included Abt Electronics,
Applied Materials, British Airways, Budget Rent a Car, China Telecom,
Citibank, Columbia House, Duke Energy, Edmunds.com, Federal Portal Belgium,
Finnish Rail, German Stock Exchange, Harley-Davidson Motor, Integradora de
Services Operativos, Johnson & Johnson, KLA-Tencor, Kohl's Department Stores,
Kookmin Bank, La Mondiale, Longs Drug Stores, Marsh Corporate Services,
McKesson Corporation, Medtronics, Nordea, ORIX Capital Markets, Shanghai
Finance Bureau, SK Telecom, Sprint, Sprint PCS, TIM Peru, TRW, UK Inland
Revenue, US Air Force, United Parcel Service, United States Cellular,
Vodafone, and Zion's Bank. BEA added more than 425 new customers during the
quarter, and signed 165 new partnerships. New or expanded relationships were
also entered into with hardware, systems integrator, ASP, and ISVs including
Alcatel Space Industries, AT&T Online Services, Blueframe Solutions, Borland,
Ceon, CompuCom, Connectika, Critical Path, Dante Consulting, Diagonal
Solutions, Electronic Data Systems, Entology, Hewlett-Packard, InfoTech
Enterprises, Intel, LegacyJ, Lockheed Martin, Niteo Partners (an NEC company),
RedHat, Reuters Espana, SBS International (a Boeing company), TogetherSoft,
Verio, WorldChain, Xtria and Yahoo!.
About BEA
BEA Systems, Inc. is the world's leading application infrastructure
software company, providing the enterprise software foundation for more than
13,000 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
business.
Headquartered in San Jose, Calif., BEA has 91 offices in 33 countries and
is on the Web at www.bea.com. |
