Sybase Reports Record Second Quarter Results

Sybase, Inc. (NYSE: SY), an industry leader in enterprise and mobile software, today reported financial results for the second quarter ended June 30, 2010.

Highlights

• Historical second quarter records achieved in total revenue, operating income, operating margin, net income, and EPS
• Total revenue up 9% year over year
• Mobile software license revenue increased 12%
• Messaging revenue increased 24%
• GAAP operating income up 17% to $74.3 million, representing operating margin of 25%
• Non-GAAP operating income up 17% to $91.2 million, representing operating margin of 30%
• GAAP EPS up 19% to $0.51; non-GAAP EPS up 18% to $0.66

2010 Second Quarter Results

Total revenue for the second quarter of 2010 grew 9% to $302.0 million, compared to $278.0 million in the second quarter of 2009. License revenue grew 6% to $100.1 million, compared to $94.1 million in the second quarter of 2009. Services revenue grew 5% to $147.2 million, and messaging revenue grew 24% to $54.8 million in the second quarter of 2010.

Operating income calculated in accordance with generally accepted accounting principles (GAAP) for the second quarter increased 17% year over year to $74.3 million, representing an operating margin of 25%.

For the quarter, GAAP net income grew 20% year over year to $45.3 million. GAAP earnings per diluted share (EPS) grew 19% year over year to $0.51.

Non-GAAP operating income for the second quarter of 2010 increased 17% year over year to $91.2 million, representing a 30% operating margin.

Non-GAAP net income for the second quarter grew 20% year over year to $59.1 million. Non-GAAP EPS grew 18% year over year to $0.66.

Non-GAAP amounts exclude the amortization of certain purchased intangibles, stock-based compensation, restructuring costs, charges related to the impairment of auction rate securities, imputed interest related to our convertible debt, gains or losses on assets held for employees in a deferred compensation plan, transaction costs relating to the pending tender offer from a subsidiary of SAP America, Inc. to purchase all of our outstanding stock, and the tax effect of these and related items.