Sybase blasts past analyst earnings forecast
Sybase handily beat earnings forecasts for its fourth quarter and the year, crediting a string of new customer contracts and its expansion from databases into Internet business-related software for helping it to achieve the most profitable year it has ever had.
Net income for the fourth quarter on a pro forma basis increased to $35.8 million, or 40 cents per share, compared to net income of $27.7 million, or 33 cents per diluted share, in 1999, excluding restructuring credits and charges relating to acquisitions. This figure also excludes a gain of 10 cents per share, or $9.7 million, related to a previously recorded deferred tax asset valuation allowance. The fourth quarter earnings forecast from analysts polled by First Call/Thomson Financial (which did not take into account the tax benefit) was 35 cents.
For the year, pro forma net income excluding restructuring and acquisition related charges, as well as the tax allowance, increased to $105.8 million, or $1.15 per share, compared to $69.0 million, or 82 cents per share, in 1999. Analysts polled by First Call/Thomson Financial had forecast yearly earnings of $1.09 per share.
Revenue for the fourth quarter was $260.5 million compared with $237.1 million in 1999, while revenue for the year was $960.5 million, compared with $871.6 million recorded in 1999. Analysts had forecast fourth quarter revenue of $260 million and yearly revenue of $958 million, according to First Call/Thomson Financial.
Sybase has a history of beating earnings forecasts, and last year beat analyst expectations for every quarter of the year.
The company's expansion from database technology into development of software to support Internet-based business helped fuel earnings and make for the most profitable 12 months in the company's 16-year history, Sybase Chairman, President and CEO John Chen said in a statement.
For example, in the fourth quarter Sybase's Internet Applications Division announced a variety of partnerships and OEM relationships, and the company's iAnywhere Solutions unit launched its wireless applications service provider service.
Sybase's customer wins during the quarter included deals with Electronic Data Systems, Visa USA, L.M. Ericsson Telephone, Pinnacle, Nortel Networks, MP3.com and Bridge Information Systems.
Sybase, in Emeryville, Calif., is at http://www.sybase.com/.
The IDG News Service is a Network World affiliate.
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