BEA Systems has reported slower-than-expected software
sales for its first quarter and said it has moved some of its top
executives to new positions.
BEA's total revenue for the quarter, which ended 30 April,
increased 11% to $262.6m. However, revenue from software licences,
seen by analysts as an important health indicator, fell 2% to
$120.2m, below BEA's earlier projections.
Most of the large deals were signed in Europe, which had a
particularly strong quarter. Revenue from the Europe, Middle East
and Africa region climbed 41% from a year ago, to $98.9m, but
revenue from the Americas slipped 2% to $125.4m.
The shortfall was blamed on seasonal issues, the transition to a
new version of BEA's software, and changes to its sales
organisation made at the start of the quarter. The company formed a
new sales group to oversee small and medium-sized accounts, and to
work with a network of value-added resellersthat it is building in
North America.
Meanwhile, Alan Fudge, senior vice president of sales for the
Americas, has left the company. Charlie Ill, BEA's head of
worldwide sales who joined the company from rival IBM about 18
months ago, will oversee the region until a replacement is
found.
BEA has also made a handful of other changes at the top of its
ranks. Olivier Helleboid, executive vice president in charge of
BEA's product group, has been moved into a new role directing BEA's
long-term strategy.
Helleboid has been replaced temporarily by Tod Nielsen, BEA's
chief marketing officer, who will run the products group until a
replacement is found. Nielsen also remains head of marketing,
although "day-to-day operations" for the group will be managed by
another executive, Rick Jackson.
BEA's net income for the first quarter on a pro forma basis was
$33.5m, a slight increase from a year ago and in line with
analysts' expectations. The pro forma results exclude
acquisition-related costs, gains or losses on investments and other
non-recurring items.
Using generally accepted accounting principles, BEA reported
operating income of $39.1m, level with the same period a year ago.
The company ended the quarter with cash and short-term investments
of $1.6bn.
Looking ahead, BEA forecast second-quarter sales of $255m to
$275m. Bill Klein, BEA's chief financial officer, said the
environment for selling software remains tough.
James Niccolai writes for IDG News
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