BEA Systems

was up 2.9% in preopen

Island

trading after

Sun Microsystems

(SUNW) - Get Report

responded to reports that it was planning to cut into BEA's application server market. The two companies are partners, and a large chunk of BEA's business is application server software for Sun machines.

BEA's stock hit a 52-week low Thursday on reports Sun would offer iPlanet software bundled with Solaris. Sun later denied it was offering iPlanet for free with its machines. A conference call with BEA's CEO is scheduled for 10 a.m. today. Sun was up 0.7%.