Sybase Reports Double-Digit Growth in Second Quarter Database License Revenue, Operating Income, and Earnings

Sybase, Inc. yesterday reported financial results for the second quarter ended June 30, 2009.

Highlights of the quarter include historical second quarter records achieved in operating income, operating margin, net income, EPS, and cash flow; as well as license revenue that increased 4% year over year and 11% in constant currency; and database license revenue that increased 23% and 30% in constant currency. Additionally, mobile software license revenue increased 4% and 11% in constant currency.

"The team executed extremely well to deliver yet another record performance in these challenging economic times," said John Chen, chairman, CEO and president of Sybase, during a conference call yesterday.

"The IT spending environment really has not changed meaningfully over the past several quarters. Although it remains somewhat challenging, it also appears to be stabilizing," Chen observed. "As it related to us at Sybase, we continue to feel that the largest impact is in the discretionary area, such as consulting and education."

However, Chen noted, "our overall performance has been consistently solid, our pipelines are growing, and we are executing very well against this pipeline. Here, I have to add that the team really did a wonderful job. We did experience our fair share of deals moving around, but they have backup deals on deals and backup deals so we were able to come in better than we expected."

License revenue grew to $94.1 million compared to $90.5 million in the second quarter of 2008. Services revenue was $139.6 million, and messaging revenue was $44.2 million in the 2009 second quarter.

Total revenue for the second quarter of 2009 was $278.0 million, compared to $282.7 million in the second quarter of 2008. According to Sybase, its second quarter total revenue reflects a 7% negative impact from foreign currency exchange rates. Absent the impact of currency, total revenue increased 5% year over year, and license revenue increased 11% year over year.

Operating income calculated in accordance with generally accepted accounting principles (GAAP) for the second quarter increased 24% year over year to $63.3 million, representing an operating margin of 23%.

For the quarter, the company reported GAAP net income of $37.6 million and GAAP earnings per diluted share (EPS) of $0.43. This compares with 2008 second quarter GAAP net income of $29.8 million and GAAP EPS of $0.33.

Non-GAAP operating income for the 2009 second quarter increased 23% year over year to $78.3 million, representing a 28% operating margin.

Non-GAAP net income for the second quarter grew 14% year over year to $49.4 million. Non-GAAP EPS grew 16% year over year to $0.56.