Management provided a glimpse into BEA Systems Inc’s future around portal, integration and application servers yesterday, apparently eager to assure Wall Street that the company is on track following recent staff exits and re-structuring.
BEA plans a version of its WebLogic application server for telcos, serving capabilities such as IP services, delivering on recently launched strategies of verticalization and launching versions of its application server for specific customers’ needs.
Alfred Chuang, BEA’s chief executive, told analysts that the telecoms launch is opportunistic, adding: We will be productizing more stuff – this isn’t the only one we are working on.
Also hinted at were improvements to WebLogic Portal, which will see collaboration and ease of use in version 9.0, improving the software’s capabilities in employee facing portals and e-commerce and business-to-business deployments.
Chuang believes the combination of portal and integration, with WebLogic Integration, are his company’s greatest opportunities. BEA has been developing sales, marketing and consulting engagements around customer and employee self-service portals.
He said the recent fusion of services with sales and marketing under former vice president of services, Tom Ashburn, now executive vice president of world wide field operations, is assisting this strategy of portal and integration by prompting improved co-ordination.
Chuang opened up whilst announcing second quarter results that saw BEA again challenged on new licensing, as WebLogic licenses declined 8.6% to $116 million. Licensing accounted for 44% of total revenue compared to services on 56% during the quarter.
We are focused on returning to license revenue growth, Chuang promised.
He noted the most important thing for BEA during the next year and a half is to shift customers away from buying separate products and towards purchasing the WebLogic platform. This will require customers to change their buying pattern over time, Chuang said.
For the three-month period, BEA reported a 17.8% jump in net income to $30.5 million on revenue that grew 7% to $262 million. Earnings per diluted share were up a cent to $0.06. For the six-month period, BEA’s income grew 10.9% to $55.9 million on revenue that increased 8.8% to $524 million, with earnings per share of $0.13 – also up a cent.