Revenues, EPS Exceed Analyst Consensus Estimates
Management Raises Full-Year EPS Guidance
Highlights:
- Core database license revenue grows 31%, mobile & wireless license revenue increases 21%, year-over-year
- Management raises full-year pro forma EPS guidance to $1.38 from $1.29, GAAP EPS guidance to $1.12 from $1.07
Dublin, CA USA —20 July 2006 — Sybase, Inc. (NYSE: SY), a leading provider of enterprise infrastructure and mobile software, today reported financial results for the second quarter ended June 30, 2006.
For the 2006 second quarter, total license revenue increased 22% to $83.1 million from $67.9 million in the second quarter of 2005. Total revenue for the 2006 second quarter increased 5% to $215.6 million from $204.4 million for the second quarter of 2005.
Operating income calculated in accordance with generally accepted accounting principles (GAAP) for the second quarter of 2006 increased 15% to $32.4 million, compared with GAAP operating income of $28.1 million for the year-ago quarter. The GAAP results for the 2006 second quarter include the impact of $3.3 million associated with implementation of FAS 123R.
GAAP net income for the 2006 second quarter increased 66% to $26.3 million, or GAAP EPS of $0.29, compared with GAAP net income of $15.9 million, or GAAP EPS of $0.17 for the 2005 second quarter.
Pro forma operating income increased 22% to $41.8 million, compared with pro forma operating income of $34.3 million in the second quarter of 2005. Pro forma net income for the second quarter increased 31% to $32.8 million, or earnings per diluted share of $0.36. This compares with pro forma net income of $25.0 million, or earnings per diluted share of $0.27, for the 2005 second quarter.
Pro forma amounts exclude amortization of certain expenses including certain purchased intangibles, stock-based compensation, and restructuring costs. Accompanying this release is a reconciliation of pro forma and GAAP amounts for the 2006 second quarter.
“Our strong growth in the quarter was driven by demand for our ASE 15 flagship data management solution and its encryption and partitioning options, growth in data integration solutions, plus solid performance in our mobile business,” said John Chen, chairman, CEO, and president of Sybase.
“This resulted in our highest year-over-year license growth in 12 years and the highest Q2 operating margin in our history as a public company,” added Mr. Chen. “Our second quarter performance validates the strength of our Unwired Enterprise strategy and solutions, and we remain committed to growing the business through investments in R&D, sales and marketing, and other strategic initiatives.
“We’re encouraged by the quality of our business, consistently high levels of customer satisfaction, and solid maintenance renewal rates. As a result, we remain on track to achieve our revenue growth targets, and we expect to meet or exceed our previous cash flow and profitability targets for the year,” concluded Mr. Chen.
Balance Sheet and Other Data
At June 30, 2006, Sybase reported $935.9 million in cash and cash investments, including restricted cash of $5.5 million. The company generated $51.6 million in cash flow from operations in the second quarter.
Sybase repurchased approximately $20.6 million worth of its stock during the 2006 second quarter. As of June 30, 2006, approximately $264.3 million remained authorized in the company’s current share repurchase program.
Days sales outstanding for the second quarter was 56 days.
Forward Guidance
For the third quarter ending September 30, 2006, management anticipates revenues will range from $210 to $215 million, with pro forma fully diluted EPS of approximately $0.33. GAAP EPS is estimated to be approximately $0.27, which would include the impact of expensing options under FAS 123R.
For the 12-month period ending December 31, 2006, management anticipates total revenue growth of 6%. Due to improved margin performance in the first half of 2006, management is raising its most recent full-year estimates for fully diluted pro forma EPS to approximately $1.38 from $1.29. Management is also raising GAAP EPS guidance to approximately $1.12 from $1.07. Management also expects it will be able to meet, or slightly exceed, the cash flow target of $170 million for the year.
Q206 Company Highlights
- Launched Information Anywhere® Suite, an enterprise-class mobile platform enabling customers to securely extend back-end applications and business processes to remote workers on the front lines.
- Acquired privately held Solonde AG, a Hamburg, Germany-based provider of next-generation ETL technology, in an all-cash transaction.
- Launched SQL Anywhere® 10, the next-generation of the market-leading data management and synchronization solution for frontline environments.
- Delivered Sybase Replication Server® 15, the next-generation data movement solution that synchronizes operational data across mixed database environments and geographies in real time.
- Delivered Mirror Activator™, Sybase’s business continuity solution, now available for Oracle database environments.
- Delivered RFID Anywhere™ 2.1, the latest-generation platform for developing and managing robust, highly distributed radio frequency identification (RFID) solutions.
- Delivered DataWindow .NET™ 2.0 application development tool to support the Microsoft .NET Framework.
- Delivered Sybase® WorkSpace 1.5, an Eclipse-based unified application development environment.
- Announced support for Motorola Q by Sybase iAnywhere technologies.
Conference Call and Webcast Information
The Sybase 2006 second quarter conference call and simultaneous Webcast is scheduled to begin at 7:30 a.m., Pacific Time/10:30 a.m. Eastern Time, on Thursday, July 20, 2006. To access the live Webcast, please visit www.fulldisclosure.com or Sybase’s Website at www.sybase.com at least 20 minutes prior to the call to download any necessary audio or plug-in software. A telephone replay will be available approximately two hours after the conference call ends and will be available until 10:00 p.m. Pacific Time on July 27, 2006. To access the replay, please dial (888) 203-1112 for domestic access and (719) 457-0820 for international callers; the access code for the telephone replay is #1214650. Additionally, the archived Webcast will be available through October 18, 2006 at http://www.sybase.com/about_sybase/investorrelations.
About Sybase
Sybase is the largest enterprise software company exclusively focused on managing and mobilising information from the data centre to the point of action. Sybase provides open, cross-platform solutions that securely deliver information anytime, anywhere, enabling customers to create an information edge. The world’s most critical data in commerce, communications, finance, government and healthcare runs on Sybase. Sybase ANZ is headquartered in Sydney, with offices in Melbourne, Canberra and Wellington, New Zealand. For more information visit www.sybase.com.au or www.sybase.co.nz.
Forward-Looking Statements
Certain statements in this release concerning Sybase, Inc. and its prospects and future growth are forward-looking and involve a number of uncertainties and risks. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to, the performance of the global economy and growth in software industry sales; market acceptance of the company’s products and services; customer and industry analyst perception of the company and its technology vision and future prospects; the success of certain business combinations engaged in by the company or by competitors; political unrest or acts of war; possible disruptive effects of organizational or personnel changes; and other factors described in Sybase, Inc.’s reports filed with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2005 and Form 10-Q for the quarter ended March 31, 2006.
Sybase, Adaptive Server Enterprise (ASE), Data Window .Net, Information Anywhere Suite, Replication Server, Mirror Activator, RFID Anywhere, and SQL Anywhere are trademarks of Sybase, Inc. or its subsidiaries. All other names may be trademarks of the companies with which they are associated.
For media enquiries contact: Julie Christie, Marketing Director Sybase ANZ +612 9936 8828, julie.christie@sybase.com; or David Bass, Lewis PR +612 9901 4235, or davidb@lewispr.com.
For financial enquiries contact: Sybase Investor Relations, Lynne Farris, +1 925 236 8797, lynne.farris@sybase.com or Charlie Chen, +1 925 236 6015, charles.chen@sybase.com.
|
