Sybase Reports Solid Q1 2006 Results, Driven by 30% Growth in Mobile & Wireless Business
DUBLIN, Calif. April 27, 2006 Sybase, Inc. (NYSE: SY), a leading provider of enterprise infrastructure and mobile software, today reported financial results for the first quarter ended March 31, 2006.
Highlights:
* Pro Forma EPS increased 14% to $0.25, beating analyst consensus estimates
* GAAP EPS increased 36% to $0.19
* Total license revenues increased 7% year-over-year
* Mobile & wireless license revenues increased 49%
For the 2006 first quarter, total license revenue increased 7% to $66.9 million from $62.7 million in the first quarter of 2005. Total revenues for the 2006 first quarter increased 2% to $195.0 million from $191.9 million for the first quarter of 2005.
Operating income calculated in accordance with generally accepted accounting principles (GAAP) for the first quarter of 2006 was $18.9 million, compared with GAAP operating income of $20.3 million for the year-ago quarter. Results for the 2006 first quarter include the impact of $3.5 million associated with implementation of FAS 123R. GAAP net income for the 2006 first quarter increased 30% to $17.3 million, or GAAP EPS of $0.19, compared with GAAP net income of $13.3 million, or GAAP EPS of $0.14 for the 2005 first quarter.
Pro forma operating income was $28.4 million, compared with pro forma operating income of $28.1 million in the first quarter of 2005. Pro forma net income for the first quarter increased 10% to $22.7 million, or earnings per diluted share of $0.25. This compares with pro forma net income of $20.6 million, or earnings per diluted share of $0.22, for the 2005 first 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 first quarter.
Were very pleased with the ongoing strength of our mobile and wireless business, with license revenues increasing 49% year over year, said John Chen, chairman, CEO, and president of Sybase. Performance was driven by accelerating demand for our mobile database, device and security management, AvantGo on-demand services, as well as the recent acquisition of Extended Systems.
Added Mr. Chen, We expect solid growth in our data management business in the second half of this year. We believe this growth will be principally driven by ASE 15.0 and its options, including encryption and partitioning, combined with strength in those solutions that help customers extract data from various data sources and make that information available to the mobile worker.
Based on these results and the strength of our fundamentals, we remain confident in our ability to achieve our revenue, margin, cash flow, and profitability targets for the year, concluded Mr. Chen.
Balance Sheet and Other Data
At March 31, 2006, Sybase reported $907.8 million in cash and cash investments, including restricted cash of $5.3 million. The company generated $73.4 million in cash flow from operations in the first quarter.
Sybase repurchased approximately $24.7 million worth of its stock during the 2006 first quarter. As of March 31, 2006, approximately $34.9 million remained authorized in the companys current share repurchase program.
Days sales outstanding for the first quarter was 63 days.
Forward Guidance
For the second quarter ended June 30, 2006, management anticipates revenues will range from $210 to $215 million, with pro forma fully diluted EPS of approximately $0.30. GAAP EPS is estimated to be approximately $0.24, which would include the impact of expensing options under FAS 123R.
For the 12-month period ended December 31, 2006, management estimates total revenue growth of 6%, fully diluted pro forma EPS of approximately $1.29, GAAP EPS of approximately $1.07, and cash flow from operations of approximately $170 million.
Conference Call and Webcast Information
The Sybase 2006 first 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, April 27, 2006. To access the live Webcast, please visit www.fulldisclosure.com or Sybases 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 May 4, 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 #3767734. Additionally, the archived Webcast will be available through July 19, 2006 at http://www.sybase.com/about_sybase/investorrelations.
About Sybase, Inc.
Sybase is the largest global enterprise software company exclusively focused on managing and mobilizing information from the data center 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 worlds most critical data in commerce, finance, government, healthcare, and defense runs on Sybase. For more information, visit the Sybase Website at http://www.sybase.com.
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 companys 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.
Sybase Q1 2006 Announcement Highlights
Sybase announcements during the first quarter of 2006 underscored the companys leadership in the mobile marketplace, including the announcement of RFID Enterprise 2.0 a comprehensive RFID solution that enables companies to meet the design, deployment and integration challenges presented by enterprise-scale RFID deployments. Sybase was honored with the 2005 LinuxWorld Magazine Readers Choice Award for Best Linux Database, with Adaptive Server Enterprise (ASE) triumphing over offerings from MySQL, Oracle, and Ingres/Computer Associates. Also, Sybase announced PowerDesigner 12.0, an all-in-one modeling and design solution for enterprises that need to build or re-engineer business applications quickly, cost-effectively and consistently.
Mobile Enterprise Initiatives
* Debuted RFID Enterprise 2.0, a comprehensive RFID solution that enables companies to meet the design, deployment and integration challenges presented by enterprise-scale RFID deployments:
http://www.sybase.com/detail?id=1039486
* Achieved certified integration of RFID Anywhere 2.0 with SAPs Auto-ID Infrastructure (AII), allowing end-users easier access and increased ability to manage collected data from various RFID devices:
http://www.sybase.com/detail?id=1038931
* Introduced new version of Afaria frontline management and security solution with expanded breadth of functionality available for managing mobile devices:
http://www.sybase.com/detail?id=1039955
* Debuted RFID Anywhere Appliance Edition which brings intelligence and manageability to RFID devices, enhancing performance and reducing operating costs for enterprises deploying RFID solutions:
http://www.sybase.com/detail?id=1039177
* Introduced general availability of the AvantGo Travel Guide, further demonstrating the companys dedication to offering applications that will enable business professionals to have always available access to important information:
http://www.sybase.com/detail?id=1039898
* Announced availability of the AvantGo Windows Mobile Smartphone beta, enabling Windows Mobile Smartphone with access to over a thousand websites optimized for reading on their phone, including news, weather, sports, and more from the worlds leading media:
http://www.sybase.com/detail?id=1039968
* Unveiled RFID University, a series of free technical webcasts targeted to educate developers on various aspects of RFID development to enable them to jumpstart their RFID projects; RFID University sponsors include leading industry vendors AWID, Printronix, Symbol Technologies, ThingMagic and Zebra:
http://www.sybase.com/detail?id=1039498
* Joined UWB Forum and WiMedia Alliance Ultrawideband standards bodies to offer customers high-bandwidth, short-range wireless communications:
http://www.sybase.com/detail?id=1038817
Database/Developer Initiatives
* Announced general availability of Quest Softwares Sybase Database Expert Option and Sybase SQL Expert Option for Sybase ASE 15.0 to help deliver optimal database performance and enable rapid migration to ASE 15:
http://www.sybase.com/detail?id=1039254
* Announced PowerDesigner 12.0, an all-in-one modeling and design solution for enterprises that need to build or re-engineer business applications quickly, cost-effectively and consistently:
http://www.sybase.com/detail?id=1038932
* Announced its Advantage Developer Days 2006 seminar series to provide developers with in-depth knowledge on how to use and exploit the new and improved features introduced in Advantage 8.0:
http://www.sybase.com/detail?id=1039897
New Customers and Partners
* Announced that by using Sybase IQ at the core of its new high speed version of TrueStandings Securities, LoanPerformance, a subsidiary of First American Real Estate Solutions and a leader in residential mortgage data and analytics, can run analyses and reports up to one hundred times faster than previous generations:
http://www.sybase.com/detail?id=1038937
* Created a partnership with Applied Wireless Identifications, Inc. to jointly develop next generation intelligent RFID readers:
http://www.sybase.com/detail?id=1039179
Industry Accolades:
* Received the 2005 LinuxWorld Magazine Readers Choice Award for Best Linux Database, ASE triumphed over offerings from MySQL, Oracle and Ingres/Computer Associates:
http://www.sybase.com/detail?id=1038952
* Honored by CCID Consulting and China Computer Users Magazine at the China IT Users Annual Conference with four prestigious for Sybase ASE and Sybase IQ
* Received recognition from leading IT market research advisory firm IDC as the leader in mobile device management enterprise software with higher revenues and market share in a top 10 list that makes up more than three-fourths of the market and is dominated by large systems management vendors:
http://www.sybase.com/detail?id=1038819
* Awarded MobileTraxs annual 2006 Mobility Awards for the AvantGo mobile Internet service and Sybases acquisition of Extended Systems:
http://www.sybase.com/detail?id=1039250
Sybase, Adaptive Server Enterprise, Afaria, AvantGo, PowerDesigner, and RFID Anywhere are trademarks of Sybase, Inc. or its subsidiaries. All other names may be trademarks of the companies with which they are associated.
Source: Sybase
[ Comment, Edit or Article Submission ]
