BEA Systems Beats Top Line

Updated from 4:50 p.m. EDT

SAN FRANCISCO -- In a partial disclosure of second-quarter results because of its ongoing stock-options investigation, BEA Systems(BEAS) reported higher revenue but declining license fees.

The San Jose, Calif., maker of infrastructure software on Thursday reported revenue of $364.6 million, 7% above a top line of $339.6 million for the same period of 2006. Analysts were expecting $362.3 million in revenue.

Earnings were not reported. Analysts were expecting EPS, less items, of 13 cents on net income of $55.7 million.

CFO Mark Dentinger projected third-quarter revenue of $368 million to $382 million, with licenses expected to account for 34% to 36% of the total. Analysts were expecting revenue of $371.7 million.

The stock was up 33 cents to $11.60 in recent after-hours trading.

License fees fell 9% year on year, to $123.1 million, as the company transitions away from traditional software to its emerging AquaLogic services-oriented architecture products. Services revenue rose 19% year on year, to $241.5 million.

Chairman and CEO Alfred Chuang said the company expects a tipping point when corporations really start investing in SOA for their IT departments. "We're waiting for AquaLogic to do that."

Deferred revenue rose 14% to $407.9 million, from $355.9 million in the prior year's quarter. Cash flow from operating activities was up 23% to $61.4 million.