BEA rises on Schwab deal

Jan. 2, 2002 4:43 p.m. PT

BEA Systems (Nasdaq: BEAS) gained over 8 percent Wednesday after inking a 3-year licensing deal with financial giant Charles Schwab & Co.

Share in the e-business software vendor marched up 4.31 to 53.44. The stock rebounded from a 13 percent drop Monday, which was caused by a fiscal 2002 fiscal earnings cut from Wit Soundview.

Under the terms of the deal, Schwab will have unlimited licenses for BEA's Java-based WebLogic Server for the next three years.

The financial company plans to use the server in its wireless trading business in the U.S. and Hong Kong, in addition to trading systems for global affiliates in Canada and Japan. The deal also covers any subsequent applications over the life of the contract.

Despite Monday's drop, BEA has been bullish of late. In addition to strong performance over recent quarters, the company bucked the recent warning trend by raising earnings estimates for its fourth quarter, along with revenue targets for fiscal 2002, back in November.