BEA boosts targets for 4Q, 2002

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BEA Systems (Nasdaq: BEAS) sees slightly higher-than-expected for the fourth quarter and next fiscal year.

During a Tuesday conference call for the business software vendor's third quarter report, BEA executives told analysts to expect the company to report full year earnings of 24 cents per share, which requires 9 cents per share in the fourth quarter. First Call consensus called for a profit of 8 cents per share in the fourth quarter of fiscal 2001.

Shares of BEA rose to 73 in afterhours activity on the Island electronic communications network, following the release of quarterly results. BEA stock rose 7.9375 to 70.9375 in Tuesday's regular trading, prior to the third quarter report.

BEA sees full fiscal 2001 revenue of $815 million, 57 percent coming from license revenues. Analysts were looking for about $780 million for the year.

CFO William Klein also told analysts to look for fiscal 2002 revenue of roughly $1.2 billion, compared to analyst expectations of $1.1 billion to $1.15 billion. Published estimates for earnings per share currently range from 36 to 37 cents. Operating margins should be 18 to 19 percent in 2002, Klein said.

After market close Tuesday, the vendor of e-business software reported third quarter net income of $31.3 million, or 7 cents per share, excluding special charges. First Call's survey of 19 analysts predicted a profit of 6 cents per share for the quarter ended Oct. 31.

Third quarter revenue rose 77 percent year-over-year to $224 million. License fees rose 23 percent sequentially to $128.2 million.

"This reflected the beginning of the implementation of architectures built by our consulting organization in the first half of this year.," said Bill Coleman, CEO and chairman. "It also reflects increased demand for our products and the success of our recently launched indirect channel program with systems integrators and packaged application developers."

Including amortization of purchased intangible assets, merger-related costs, the write-off of acquired in-process research and development, charges related to the conversion of certain convertible notes, and taxes on stock options, BEA in the third quarter earned $8.2 million, or 2 cents per share.

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