BEA Revenues Rise in Q2

BEA Systems Inc. (Nasdaq: BEAS) said its overall revenues rose 7 percent, even as its licensing revenues slipped, when the company reported its second quarter earnings last night.

The data center software vendor said overall revenues were $262.3 million, but its licensing revenues, which were $116.3 million, had dropped nearly 9 percent since the previous year's quarter.

BEA reported pro forma earnings of 8 cents a share, or $33.6 million, for the quarter, up 10 percent from the 7 cents a share, or $30.4 million, it reported a year ago. The results beat analysts' expectations, but management expressed concern about the company's sagging licensing revenues.

BEA CEO Alfred Chuang says that the company is now aiming for better coordination” by combining its sales, services, and marketing teams into a "worldwide field organization."

BEA’s core offering is the WebLogic product, a server application software that runs between backend databases and workstations, and is often used to support e-commerce applications. Chuang talked some about the new version, WebLogic 9.0, although he did not say when it will be launched.The California-based firm is “investing heavily” in WebLogic 9.0, which will include new messaging and automation features, according to Chuang. The new version will also offer users “a significant reduction in the cost of ownership,” he says.

With BEA up against IBM Corp. (NYSE: IBM)’s WebSphere product in the data center, BEA is keen to win new customers with WebLogic 9.0. "Our goal is to allow customers to put their applications into development faster and make it easier to use,” says Chuang.

Chuang also identifies significant opportunities in the application server market, specifically in the telecom arena, as service providers rush to deploy IP-based services such as VOIP and wireless. In an attempt to tap into this lucrative market, BEA will be introducing a new version of its application server product aimed specifically at telecom firms.

The market responded positively to the results. BEA shares were up $0.30 (5.03%) to $6.26 in early trading this morning.

— James Rogers, Site Editor, Next-gen Data Center Forum0