BEA Systems, Inc. (Nasdaq: BEAS), a world leader in enterprise infrastructure software, today announced results for its fiscal third quarter. For the third quarter ended Oct. 31, 2005, BEA reported record total revenues of $291.5 million, up 10% from $264.4 million in last year’s third quarter. For the third quarter, BEA reported license revenues of $121.3 million, up 6% from $114.9 million a year ago, and services revenue of $170.2 million, up 14% from $149.5 million a year ago. For the third quarter, on a generally accepted accounting principles (“GAAP”) basis, BEA reported operating income of $49.7 million, compared to $49.7 million a year ago. BEA reported GAAP third quarter net income of$37.1 million, up 11% from $33.5 million a year ago, and GAAP diluted net income per share of $0.09, up from $0.08 a year ago. BEA generated third quarter cash flow from operations of $65.4 million, up 19% from $55.1 million a year ago.

BEA reported third quarter non-GAAP net income of $42.7 million, up 17% from $36.5 million a year ago, and non-GAAP diluted net income per share of $0.11, compared to $0.09 a year ago. Non-GAAP results exclude certain acquisition-related expenses, net gains or losses on investments in equity securities, facilities consolidation and other non-recurring charges. A reconciliation of non-GAAP adjustments is summarized on pages six and seven of this release. For full details on BEA’s reported results, see the financial tables accompanying this release.

“For the second quarter in a row, we achieved year-over-year and sequential license revenue growth in Q3. Our license revenue growth rate accelerated in Q3, and we forecast accelerated license revenue growth again in the fourth quarter,” said Alfred Chuang, chairman and chief executive officer, BEA Systems, Inc. “Congratulations to the entire BEA team, and especially the Americas team, on a great quarter. The Americas team delivered our highest revenue performance ever in the Americas, and grew revenue 17% over last year, their third consecutive quarter of double digit growth. Our WebLogic Server business continued to grow faster than industry analyst projections for the app server market. In addition, contribution accelerated from our new product lines, particularly our new AquaLogic product family. We had our first multi-million dollar stand-alone order for our new AquaLogic Service Bus, and our AquaLogic product family contributed to seven out of our 19 $1 million license deals.”

“BEA is on the move. We are making strides in executing our focused strategy to deliver innovative and robust infrastructure software to our customers. Our product strategy includes enhancing our entire product portfolio while delivering a new product family that builds on our performance lead in the core application server market and opens opportunities for BEA in new growth markets,” said Chuang. “In the core product set, we are delivering innovative new features that make it easier for customers to build, deploy and manage large-scale mission-critical systems. We are expanding the core application infrastructure into new growth areas, such as SIP support for VOIP and the triple-play opportunity in the telco market, as well as edge server technology for the RFID market. And we have built a new service infrastructure layer, the AquaLogic product family, to support SOA. To supplement our internal development, we have expanded our technology portfolio and development teams with acquisitions such as Plumtree, Compoze, ConnecTerra, M7 and SolarMetric. In addition to the talent these acquisitions have added to our technology and development teams, they have also added important new customer and partner relationships.”