Sybase, Inc, a leading provider of enterprise infrastructure and mobile software, today reported financial results for the first quarter ended 31 March 2006. For the 2006 first quarter, total licence revenue increased 7% to $66.9 million from $62.7 million in the first quarter of 2005. Total revenue for the 2006 first quarter increased 2% to $195 million from $191.9 million for the first quarter of 2005.
Operating income calculated in accordance with generally accepted accounting principles (GAAP) for the first quarter of 2006 was $18.9 million, compared with GAAP operating income of $20.3 million for the year-ago quarter. Results for the 2006 first quarter include the impact of $3.5 million associated with implementation of FAS 123R. GAAP net income for the 2006 first quarter increased 30% to $17.3 million, or GAAP EPS of $0.19, compared with GAAP net income of $13.3 million, or GAAP EPS of $0.14 for the 2005 first quarter.
Pro forma operating income was $28.4 million, compared with pro forma operating income of $28.1 million in the first quarter of 2005. Pro forma net income for the first quarter increased 10% to $22.7 million, or earnings per diluted share of $0.25. This compares with pro forma net income of $20.6 million, or earnings per diluted share of $0.22, for the 2005 first quarter.
Pro forma amounts exclude amortisation of certain expenses including certain purchased intangibles, stock-based compensation, and restructuring costs. Accompanying this release is a reconciliation of pro forma and GAAP amounts for the 2006 first quarter.
"We're very pleased with the ongoing strength of our mobile and wireless business, with licence revenues increasing 49% year over year," said John Chen, chairman, CEO, and president of Sybase. "Performance was driven by accelerating demand for our mobile database, device and security management, AvantGo on-demand services, as well as the recent acquisition of Extended Systems."
Added Chen: "We expect solid growth in our data management business in the second half of this year. We believe this growth will be principally driven by ASE 15.0 and its options, including encryption and partitioning, combined with strength in those solutions that help customers extract data from various data sources and make that information available to the mobile worker.
"Based on these results and the strength of our fundamentals, we remain confident in our ability to achieve our revenue, margin, cash flow, and profitability targets for the year," Chen said.
With regard to Sybase's impressive results, Alan Cowley, Sybase SA CEO, says: "We are seeing many similar trends in the South African market and are excited about the anticipated growth in the mobile space."
Commenting on Sybase SA's Q1 results, Cowley says Sybase SA's BIPractice division has delivered significant growth in this period. "In addition, we have concluded several significant deals in our traditional Sybase product set. This has contributed to substantial growth in revenue in Q1 2006 over the same period in 2005."
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Sybase SA is the sole African representative of Sybase Inc, the largest global enterprise software company exclusively focused on managing and mobilising information from the data centre to the point of action. Sybase provides open, cross-platform solutions that securely deliver information anytime, anywhere, enabling customers to create an information edge. The world's most critical data in commerce, finance, government, healthcare and defence runs on Sybase.
For more information, visit the Sybase Web site at www.sybase.com or www.sybase.co.za.
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