| Sybase Reports Record Second Quarter Results, Driven by 15% Revenue Growth |
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| Industry Releases - Vendor submitted release (FREE} links and images deleted | |
| Monday, 28 July 2008 | |
  
Highlights: * Total revenue of US$282.7 million, up 15% year over year * License revenue increased 17% year over year * Services revenue increased 8% year over year * Database license revenue increased 38% year over year * Messaging revenue increased 41% year over year * GAAP operating margin of 18%, versus 15% a year ago; non-GAAP operating margin of 23%, versus 20% a year ago * GAAP net income of US$32.4 million, up 24% year over year; GAAP EPS up 31% year over year * Non-GAAP net income of US$43.0 million, up 26% year over year; non-GAAP EPS up 33% year over year * Cash flow from operations of US$62.7 million, up 16% year over year * Management raises full-year guidance for revenue, earnings, and cash flow from operations 2008 Second Quarter Results Total revenue for the second quarter of 2008 increased 15% to US$282.7 million from US$245.0 million in the second quarter of 2007. License revenue grew 17% to US$90.5 million from US$77.4 million in the second quarter of 2007. Services revenue increased 8% to US$146.6 million from US$135.2 million a year ago. Messaging revenue grew 41% to US$45.6 million from US$32.4 million a year ago. For the second quarter, operating income calculated in accordance with generally accepted accounting principles (GAAP) increased 44% year over year to US$51.1 million, representing an operating margin of 18%. This compares with GAAP operating income of US$35.6 million and an operating margin of 15% a year ago. GAAP net income increased 24% year over year to US$32.4 million from US$26.0 million a year ago. GAAP earnings per diluted share (EPS) increased 31% to US$0.37 for the 2008 second quarter from US$0.28 for the second quarter of 2007. Non-GAAP operating income for the second quarter increased 33% year over year to US$63.7 million, representing a 23% operating margin. This compares with non-GAAP operating income of US$47.8 million, representing a 20% operating margin, in the 2007 second quarter. Non-GAAP net income for the 2008 second quarter increased 26% to US$43.0 million from US$34.3 million for the second quarter of 2007. Non-GAAP EPS for the 2008 second quarter increased 33% to US$0.49 from US$0.37 for the second quarter of 2007. Non-GAAP amounts exclude the amortisation of certain purchased intangibles, stock-based compensation, restructuring costs, charges related to the impairment of auction rate securities, and the tax effect of these and related items. Accompanying this release is a reconciliation from GAAP to non-GAAP amounts for the second quarter of 2008. "I am extremely pleased with our strong performance in the second quarter of 2008,” stated John Chen, chairman, CEO and president of Sybase. “We have now delivered three consecutive record quarters, four consecutive quarters exceeding Street consensus revenue, and 16 consecutive quarters exceeding consensus earnings.” Added Mr. Chen, "Our ongoing success is attributable to growing market acceptance of our Unwired Enterprise strategy. We are excited about our prospects for continued growth, driven by our flagship enterprise database, IQ analytics server, mobile middleware, and mobile messaging. Additional growth catalysts expected to enhance our momentum include new offerings such as risk analytics, data clustering, Mobile Office, mobile banking, and next-generation mobile messaging. “Notwithstanding the macro-economic cross-currents, our business pipeline remains healthy, and we are confident in our team’s ability to execute. As a result, we are again raising our 2008 revenue, earnings, and cash flow targets, which put us on track to deliver yet another record full-year performance,” concluded Mr. Chen. Balance Sheet and Other Data At June 30, 2008, Sybase reported US$606.4 million in cash and cash investments, including long-term cash investments of US$22.7 million and restricted cash of US$3.7 million. In the second quarter, the company generated US$62.7 million in cash flow from operations. There remains US$82.9 million authorised under the company’s current share repurchase program. Days sales outstanding (DSO) for the second quarter was 75. Guidance For the third quarter ending September 30, 2008, management anticipates total revenue in the range of US$270 million to US$275 million. Management anticipates non-GAAP fully diluted EPS in the range of US$0.48 to US$0.50 and GAAP EPS in the range of US$0.38 to US$0.40. Management is raising guidance for full-year 2008 revenue, earnings, and cash flow from operations due to the company’s stronger-than-expected performance in the second quarter of 2008. Management now anticipates total revenue of approximately US$1.11 billion. Non-GAAP EPS is now anticipated in the range of US$1.98 to US$2.00, and GAAP EPS is anticipated in the range of US$1.53 to US$1.55. Management now anticipates cash flow from operations of approximately $250 million. |
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