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Sybase Beats Consensus Estimate

The company reported that its first quarter earnings increased 29% on revenue growth.

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Sybase

(SY) - Get So-Young International, Inc. Sponsored ADR Class A Report

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reported on April 22, 2009, that its earnings for Q1 FY09 increased 29.4% year-over-year as revenue grew. Net income attributable to Sybase Inc. surged to $28.09 million, or $0.33 per share, from $21.70 million, or $0.24 per share, in Q1 FY08. Excluding several one-time items, non-GAAP earnings grew 16.1% to $41.12 million, or $0.49 per share, which beat the most recent consensus estimate of $0.42 per share.

Total revenue increased 2.8% to $267.51 million from $260.15 million a year ago. License fees grew 14.3% to $89.28 million, whereas services revenue inched down 3.2% to $134.97 million. Messaging revenue increased 1.5% to $43.26 million from $42.63 million. Revenue from North America accounted for 52.0% of total revenue. Revenue from Europe, the Middle East, and Africa represented 33.0% of the total revenue, while revenue from the Intercontinental region added 15.0% to the total revenue. Cost of license fees and services dipped 15.5% and 9.9%, respectively. Cost of messaging spiked 7.4% to $26.97 million. Sales and marketing, product development and engineering, and general and administrative costs dropped 6.0%, 2.3%, and 11.6%, respectively.

Sybase entered into a partnership with Xtivia, an IT Business Solutions provider based in Edison, New Jersey. The company announced a distribution agreement with Avnet Technology Solutions in India to offer analytics and mobility services.

Looking ahead to Q2 FY09, Sybase raised its total revenue guidance by 5.0% to 6.0% in the range of $270.00 to $275.00 million. The company forecasts its non-GAAP EPS to be in the range of $0.50 to $0.52 per share and GAAP EPS of $0.37 to $0.39 per share. For FY09, SY raised its non-GAAP EPS in the range of $2.20 to $2.24 per share, while GAAP EPS of $1.64 to $1.68 per share on revenue of around $1.10 billion representing 5.0% growth.