BEA grows profit by 70 per cent

BEA grows profit by 70 per cent

Middleware specialist reports positive results weeks after rebuffing Oracle takeover bid

Software firm BEA Systems reported a profit increase of 70 per cent on last year, to $64.3m (£32m).

Third-quarter results also showed an 11 per cent revenue increase to $384m (£192m), compared to the same period last year.

Software licence fees were down one per cent to $134.8m (£67.4m) and services revenue was up 18 per cent to $249.6m (£124.8).

Cash flow from operating activities was up 62 per cent to $87.5m (£44m) and net income was up 59 per cent to $56m (£29m).

Operating margins have also improved reaching 16.7 per cent compared to 10.8 per cent a year ago.

BEA's good performance was led by its AquaLogic products, which represented 27 per cent of licence revenue, said BEA chief executive Alfred Chuang.

“AquaLogic products will be important products for the emerging hot areas of service-oriented architecture management and governance,” said Chuang.

BEA expects fourth quarter total revenue to be in the range of $420-434m (£210-£217m).

The software firm last month rebuffed a takeover bid from Oracle.