New Releases of BEA WebLogic Portal and BEA WebLogic Integration
Solidify BEA's Position as E-Business Infrastructure Software Leader
High Wycombe, UK, November 1, 2001 - BEA Systems, Inc. (Nasdaq: BEAS), one of the world's leading e-business infrastructure software companies, today announced preliminary results for the third quarter ended October 31, 2001. BEA anticipates total revenue for the third quarter to be between 7 million and 1 million, including license revenue between 5 million and 7 million. Based on this estimated revenue, the Company expects to report pro forma earnings per share of approximately .05-.06 per diluted common share. Pro forma results exclude impairment charges and acquisition-related expenses, employer payroll taxes on stock options, net gains or losses on investments in securities, and other non-recurring charges. BEA will report final third quarter results on November 13, 2001.
"With more than billion in cash and an expanding customer and partner base, we are maintaining our commitment to invest in product enhancements, new technologies and business relationships that extend our e-business platform. Our cash position, product set, ongoing development efforts and distribution channel have us well positioned for growth when the economic climate stabilises," stated BEA founder, President and CEO Alfred Chuang. "I am pleased with the success of our development and indirect channels teams, both of which made significant progress this quarter. We have extended our position as the leader in e-business platform technology this quarter, as evidenced by the recent releases of BEA WebLogic Portal 4.0 and BEA WebLogic Integration 2.1, as well as the deeper relationships recently announced with our systems integration, portal and integration solution partners. Now, we are working on the next generation of extensions, including simpler Web Services develo!
pment tools, multi-channel support and other key infrastructure elements, as well as partner-generated portlets and increased partner support for our standards-based approach to integration."
BEA also announced that it is adjusting its guidance for the fourth quarter and making several changes in its cost structure, based on continued weakness in the macroeconomic environment. "BEA's position as a leading e-business infrastructure software provider is stronger than ever, as evidenced by recent market share reports from both Gartner and The Meta Group. There is no doubt, however, that the current economic environment is very challenging," Chuang stated. "We presently believe it is appropriate to expect low single digit percent sequential growth in our fiscal fourth quarter. We currently expect that revenue at those levels should allow us to achieve pro forma net income per share for the fourth quarter in the range of .06 to .07." BEA also announced several changes in its cost structure. "During the quarter, we took a number of actions to better align our cost structure with our current business strategy and expectations, with the goal of improving our c!
ompetitiveness as we look forward to next year," Chuang continued. In addition to cost controls instituted in Q1 and Q2, BEA has also implemented a program to consolidate excess facilities and reduce its workforce by approximately 9-10% by the end of the year. These reductions were focused primarily in areas that had excess capacity after aligning BEA's business strategy with its organisational objectives. Additionally, BEA announced that it expects to recognise an impairment write-down of certain acquired intangible assets and minority investments. As a result of these actions, BEA expects to recognise impairment and other non-recurring charges of approximately 0 million in Q3 ( million of which is associated with asset impairments and is non-cash), and approximately to million in Q4, associated with severance arrangements.
Investors will have the opportunity to listen to BEA's conference call discussing these preliminary results over the Internet on the investor information page of BEA's Web site at http://www.bea.com/investors/. The call will be available live beginning today at 2 p.m. PST, and a replay will be available immediately following completion of the live call and for up to 12 days thereafter. In addition, investors will have the opportunity to access a telephone replay of the call through November 13, 2001 by dialing (703) 925-2435, access code 5643301.
BEA Systems, Inc. (Nasdaq: BEAS) is one of the world's leading e-business infrastructure software companies, with more than 11,000 customers around the world, including the majority of the Fortune Global 500. BEA and its WebLogic(r) brand are among the most trusted names in e-business. Businesses built on the award-winning BEA WebLogic E-Business Platform are reliable, highly scalable, and poised to bring new services to market quickly. BEA's e-business platform is the de facto standard for more than 2,100 systems integrators, independent software vendors (ISVs) and application service providers (ASPs) to provide complete solutions that fast-track and future-proof e-businesses for high growth and profitability. Headquartered in San Jose, Calif., BEA has 93 offices in 34 countries and is on the Web at www.bea.com.
Legal Notice to Forward Looking Statements
Some of the statements in this press release are forward-looking, including statements regarding future market opportunity, future financial performance, new feature and product introductions, partner product introductions, future partner support, and performance of BEA's indirect channel. BEA's actual results could differ materially from those expressed in any forward-looking statements. Risks and uncertainties BEA faces that could cause results to differ materially include risks associated with: quarterly fluctuation in customer spending due to economic and other factors, dependence on growth of the markets for BEA's products, competition, dependence on acceptance of BEA's products by channel partners, dependence on success of BEA's channel partners, market acceptance of BEA's products, integration of past and future acquisitions, length of BEA's sales cycle, dependence on hiring key personnel, rapid technological change, dependence on new product introductions and enhance!
ments, potential software defects, and significant leverage and debt service requirements. Readers should also refer to the section entitled "Factors That May Impact Future Operating Results" on pages 20 through 30 of BEA's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2001, as well as similar disclosures in subsequent BEA SEC filings. The forward-looking statements and risks stated in this press release are based on information available to BEA today. BEA assumes no obligation to update them.
Lucille Van Der Wateren
BEA Systems Ltd.
+44 (0) 1494 5595536
Kina Kara / Nishma Shah
The Weber Group
+44 (0)20 7544 3206
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