Database License Growth and Messaging Growth Fuels Record Third Quarter Revenue and Earnings at Sybase

Sybase, Inc. last week reported financial results for the third quarter ended September 30, 2009. "The team continued to execute very well and enabled us to deliver our best-ever third quarter results in the company history," John Chen, chairman, CEO and president of Sybase, said during an earnings call announcing the results. The company achieved third quarter records in total revenue, operating income, operating margin, net income, EPS, and cash flow from operations.

These results were driven by database license revenue, which increased 32% and 35% in constant currency; and messaging services, which increased 18% and 23% in constant currency.

Sybase's flagship database product - ASE - continues to see strong interest from the market with approximately 70% of its direct enterprise database customers using ASE 15 in production. Additionally, the company states, analytics continue to be a major differentiator. Sybase IQ and RAP had double-digit license growth and added 39 new customers, which Sybase attributes to a trend in which customers are favoring technology investment that will deliver a rapid ROI.

Total revenue for the third quarter of 2009 was $293.4 million compared with $284.0 million in the third quarter of 2008. License revenue grew to $96.2 million versus $92.9 million in the third quarter of 2008. Services revenue was $144.4 million, and messaging revenue was $52.8 million in the 2009 third quarter.

Sybase's third quarter total revenue reflects a 3% negative impact from foreign currency exchange rates. Absent the impact of currency, license revenue and total revenue both increased 6% year over year.