BEA Systems, the software company that has been stalked by Oracle, on Thursday restated nine years of accounts to reflect $424m of understated employee option charges, almost wiping out its reported profits for the entire period.

At the same time, however, the embattled software company reported a rebound in its profit margins in the latest quarter, potentially strengthening its hand as it tries to make its case for resisting Oracle’s recent $7.1bn bid.