Sybase Rises

A buyback boosts the stock 2%.
Author:
Publish date:

Sybase

(SY) - Get Report

posted a 30% increase in profits for the first quarter, thanks to good sales growth.

The Dublin, Calif.-based, company earned $17.25 million, or 19 cents a share, in the quarter, compared with $13.35 million, or 14 cents a share, a year ago. Results for the 2006 first quarter include the impact of $3.5 million associated with stock option expenses. Adjusting for this, the company earned $22.74 million or 25 cents a share. Analysts polled by Thomson First Call were expecting earnings of 24 cents a share in the most recent quarter.

Revenue for the quarter rose 2% to $195 million. Analysts were expecting revenue of $200 million in the most recent quarter. The total license revenues increased 7% with mobile and wireless license revenues increasing 49%.

Operating profit margin declined 88 basis points to 9.72%.

For the second quarter of 2006, the company expects to earn 24 cents a share and excluding stock option expenses the company expects to earn 30 cents a share on revenue between $210 to $215 million. Analysts polled by Thomson First Call expect to earn 30 cents a share on revenue of 211.78 million.

For the full year 2006, the company expects to earn $1.07 a share, excluding stock option expenses the company expects to earn $1.29 a share on a 6% revenue growth. Analysts polled by Thomson First Call expect to earn $1.29 a share.

"We're 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."

In a separate announcement the board of directors of the company has approved a $250 million increase to its stock-repurchase program. Sybase's buyback plan had been raised several times to a total of $600 million, before the latest authorization.

The stock rose 45 cents to $21.89.

This story was created through a joint venture between TheStreet.com and IRIS.