Business software maker BEA Systems, which has rejected a takeover bid from Oracle, reported a higher quarterly profit on Thursday as margins improved, though its software sales fell.
BEA, which also restated its earnings from 2003 to 2006 after completing an investigation into historical options grants, said its fiscal third-quarter profit excluding items rose to $78.9 million, or 19 cents, from $59.5 million, or 14 cents, a year earlier.
Revenue rose 11 percent to $384.4 million for the quarter ended October 31, beating the average analyst forecast of $375.4 million according to Reuters Estimates. Its non-GAAP operating margin rose to 25 percent from 21 percent a year earlier.
License fees from sales of software, however, fell 1 percent from a year earlier to $134.8 million. Services revenue rose 18 percent to $249.6 million.
BEA also said it plans to hold a shareholders meeting on February 14.
The company is under pressure from its largest shareholder Carl Icahn to put itself up for sale through an auction, after its board rejected a $17-a-share bid from Oracle. BEA has said it is worth $21 a share, or $8.2 billion.
Its shares were trading at $16.70 after the results, the same as their closing price Thursday.
The software maker said it expects to report fiscal fourth-quarter revenue of $420 million to $434 million, which is higher than the $417 million forecast by Wall Street, according to Reuters Estimates.
Chief Executive Alfred Chuang said BEA expects to report profit excluding items of 70 cents per share for its fiscal year ending January 31 if it hits the midpoint of its revenue forecast for the fourth quarter.
BEA did not issue any forecasts for fiscal 2009. The company does not typically issue annual forecasts.
It said it had third-quarter operating income excluding items of $96.2 million, compared with $72.5 million a year earlier. It had deferred revenue of $389 million in the third quarter, up 15 percent from a year earlier.
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