Sybase beats estimates but earnings are flat
Sybase (NYSE:SY) today reported non-GAAP earnings of $0.56 per share, beating the estimates of 11 analysts polled by the Thomson Financial Network by four cents.
Revenues for the quarter were $278 million, down from $283 million for the same quarter a year ago. While license fees were up compared to the same quarter a year ago, revenue from services and messaging was down. Without the effect of exchange rates, Sybase would have reported higher revenues.
The company's sales and marketing budget was $62 million, down from $74 million for the same quarter a year ago.
Based on operational efficiencies, the company raised its full year guidance for expected earnings per share from for non-GAAP earnings to a range of $2.23 to $2.27 from a previous range of $2.20 to $2.24. The company expects revenues to rise by 5 or 6 percent but it also expects exchange rates to lower reported revenues in dollars by 7 percent.
Thus, an expected gain of 10 cents per share from operations will come from increased efficiency and will be offset partially by other costs, such as increased expected tax payments.
"We are pleased to deliver another record performance in these challenging economic times, highlighted by second quarter all-time highs in operating margin, net income, and cash flow, as well as double-digit growth in database license revenue, operating income, and earnings," said John Chen, Sybase CEO, chairman, and president, in a statement.
"We also experienced momentum in our key growth initiatives including analytics,
enterprise mobility and mobile commerce," he added.