This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

BEA Systems Guides Year Higher

Updated from 5:13 p.m. EST

SAN FRANCISCO - Posting an earnings report Thursday for the first time in a year, BEA Systems (BEAS) projected strong revenue and earnings for the full year.

The San Jose, Calif., middleware company reported third-quarter revenue of $384.4 million, up 10.6% from a top line of $347.7 million a year ago. Year to date, revenue was $1.1 billion, compared to $1 billion for the same period a year ago.

Net income grew to $56 million, or 13 cents a share, from $35.1 million, or 8 cents a share, a year earlier.

Excluding items, EPS was 19 cents vs. 14 cents a year ago.

The stock was up 6 cents to $16.76 in after-hours trading.

License revenue dropped 1% year over year, while services revenue grew 18%.

The company's AquaLogic line, which is a newer type of middleware known as service-oriented architecture (SOA), grew 31% and now makes up 27% of BEA's total license revenue.

BEA projected fourth-quarter revenue of $420 million to $434 million, implying full-year revenue ranging from $1.52 billion to $1.53 billion. "At the mid-point of our fourth quarter guidance, our fiscal 2008 non-GAAP earnings per share would be 70 cents," Chairman and CEO Alfred Chuang said in a statement.

Analysts were projecting full-year 2008 EPS, less items, of 57 cents and revenue of $1.5 billion.

Chuang said on a conference call that fourth quarter operating margins, excluding items, would be 27% to 28%, compared to the consensus estimate of 22%.

The company announced its long-delayed shareholder meeting would be held Feb. 14, 2008. BEA extended the deadline for shareholder nomination of directors to Jan. 1.

Executives addressed Oracle's (ORCL - Get Report) recently rejected offer of $17 a share for BEA only indirectly, when asked why the company views its valuation at $21 a share. "We look at the classical valuation techniques -- trailing and forward P/Es , multiples, comparable deals," cash flows and growth rates, said CFO Bill Klein. "The numbers triangulated on a pretty common point" around $21.

"We reported earnings that were over 500 basis points higher than ... the consensus numbers. So that did have a pretty significant impact on people's models," Klein said.

Thursday's filings bring BEA up to date on earnings reports, following its restatement of prior years' reports due to options backdating practices.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,624.92 -47.68 -0.27%
S&P 500 2,047.28 -4.54 -0.22%
NASDAQ 4,748.1840 -9.6950 -0.20%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs