BEA Systems posts Q4 revenues of $341.4M, up 17% from last year's Q4, while fiscal year revenues were up 11% to $1.2B

February 27, 2006

3 Min Read

SAN JOSE, Calif. -- BEA Systems, Inc. (NASDAQ: BEAS), a world leader in application infrastructure software, today announced financial results for the fourth quarter and fiscal year ended January 31, 2006. BEA reported fourth quarter total revenues of $341.4 million, up 17% from last year's fourth quarter. BEA reported fourth quarter license fees of $155.9 million, up 18% from a year ago, and services revenue of $185.6 million, up 17% from a year ago. BEA generated fourth quarter cash flow from operations of $101.6 million, up 39% from $73.0 million a year ago.

For the fiscal year ended January 31, 2006, BEA reported total revenues of $1,199.8 million, an 11% increase over the fiscal year ended January 31, 2005. BEA reported fiscal year license fees of $511.5 million, a 6% increase over fiscal 2005, and services revenue of $688.3 million, a 15% increase over fiscal 2005. BEA reported a year end deferred revenue balance of $379.1 million, up $66.8 million compared to the end of last fiscal year. BEA generated fiscal 2006 cash flow from operations of $284.6 million, a 6% increase over fiscal 2005.

For the fourth quarter, on a generally accepted accounting principles ("GAAP") basis, BEA reported operating profit of $57.7 million, compared to $59.0 million a year ago. BEA reported GAAP fourth quarter net income of $35.4 million, compared to $41.6 million a year ago, and GAAP diluted net income per share of $0.09, compared to $0.10 a year ago. BEA's fourth quarter GAAP results include a one-time net tax expense of approximately $6.7 million, representing approximately $0.02 per share, principally associated with repatriation of foreign-earned income under the American Jobs Creation Act.

BEA reported fourth quarter non-GAAP operating income of $68.2 million, up 7% from $63.9 million a year ago. BEA reported fourth quarter non-GAAP net income of $48.7 million, up 8% from $45.2 million a year ago, and non-GAAP diluted net income per share of $0.12, compared to $0.11 a year ago. Non-GAAP results exclude certain acquisition-related expenses, net gains or losses on investments in equity securities, facilities consolidation charges, and other charges and credits that are expected to be non-recurring, and assumes a tax rate of 30%. A reconciliation of non-GAAP adjustments is presented on pages six through nine of this release. For full details on BEA's reported results, see the financial tables accompanying this release.

For fiscal 2006, BEA reported GAAP operating income of $205.8 million, a 6% increase over fiscal 2005. BEA reported fiscal 2006 GAAP net income of $142.7 million, up 9% from $131.1 million in fiscal 2005, and GAAP diluted net income per share of $0.36, compared to $0.32 in fiscal 2005. For fiscal 2006, BEA reported non-GAAP operating income of $228.7 million, up 4% from $219.7 million in fiscal 2005. BEA reported fiscal 2006 non-GAAP net income of $165.0, up 11% from $148.6 million in fiscal 2005, and non-GAAP diluted net income per share of $0.41, compared to $0.36 in fiscal 2005.

"For the third consecutive quarter, our year-over-year license revenue growth rate accelerated. We believe our momentum is continuing in the first quarter, where we expect a double-digit year-over-year license revenue growth rate," said Alfred Chuang, chairman and chief executive officer, BEA Systems, Inc. "BEA hit on all cylinders in the fourth quarter, in each geographic region, across deal sizes and across our product families. In the fourth quarter we delivered a double-digit organic growth rate, highlighted by our new AquaLogic product line. Our WebLogic Server business continued to grow faster than industry analysts' projections for the application server market. Congratulations to the team on a great quarter."

"BEA's focused strategy to deliver innovative and robust infrastructure software is paying off. WebLogic Server is dramatically better than the competition, which we believe allowed us to gain market share. Customers tell us that they are benefiting from the feature and performance improvements we continue to deliver in our WebLogic product line," Chuang said. "In addition, both customers and partners are implementing our new AquaLogic product family to support their growing SOA environments."

BEA Systems Inc. (Nasdaq: BEAS)

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