BEA: Revenues up but license fee collections down

Company offers mixed snapshot of second fiscal quarter

BEA Systems provided a snapshot Thursday of its recently ended second quarter for the 2008 fiscal year, in which revenues were up but the company saw licensing fee collections drop.

Revenues were $364.6 million, an increase of 7 percent over last year's second quarter. BEA's fiscal year 2008 second quarter ended July 31.

License fees were $123.1 million, a decrease of 9 percent from the same time period last year, BEA said. Services revenues jumped 19 percent to $241.5 million. Cash flow from operating activities increased 23 percent to $61.4 million.

BEA's AquaLogic software for implementing SOA represented 24 percent of license revenue.

The company saw a rebound in the quarter, said Alfred Chuang, BEA chairman and CEO, in a statement released by the company.

"In Q2, license bookings and business activity rebounded soundly. We closed a steady stream of business throughout the quarter, and improved our visibility for Q3. Through new, rigorous sales management processes and a focus on execution, in the second quarter we improved the deal execution process, the pipeline close rate, and the linearity of our business," Chuang said. "Our team did an outstanding job implementing the new sales management processes so quickly. In Q3, the team will continue the improvements we have already made, and begin implementing the next round of process improvements."

But Chuang predicted "a disruptive shift."

"We are on the cusp of the next era in enterprise IT, which will represent a disruptive shift. We are seeing unprecedented rates of change in business and the way people access and use information, both at home and in the office," Chuang said. "We see a new generation of flexible, dynamic, and real-time composite applications surpassing traditional packaged applications. This new generation of applications is made possible by combining user-based access to managed business applications and data services with the flexibility of business process management and new social computing tools that put business users in charge of their applications."

The company, Chuang said, "is well positioned to continue our leadership role in providing the infrastructure, access to services and user-based tools to enable our customers to quickly and reliably deploy next-generation applications."