Sybase, Inc, a leading provider of enterprise infrastructure and wireless software, today reported financial results for the 2005 fourth quarter and year ended 31 December 2005.
For the year, total revenues increased 4% to $818.7 million from $788.5 million for 2004. Total licence revenue for the year increased 6% to $291.7 million from $275.9 million in 2004.
Pro forma operating income increased 11% to $148.9 million, representing 18% margin. Operating income calculated in accordance with generally accepted accounting principles (GAAP) for 2005 increased 36% to $121.9 million, representing a 15% margin.
Pro forma net income for the year increased to $117.8 million, or earnings per diluted share of $1.26. This compares with pro forma net income of $101.6 million, or earnings per diluted share of $1.04, for 2004. GAAP net income for 2005 increased to $85.6 million, or GAAP EPS of $0.92, compared with GAAP net income of $68 million, or GAAP EPS of $0.69 for 2004.
Total revenues for the fourth quarter of 2005 increased to $223 million compared with $218.6 million for the fourth quarter of 2004. Licence revenues grew 5% to $91.3 million for the 2005 fourth quarter compared with $87.2 million for the same quarter a year ago.
Pro forma operating income for the 2005 fourth quarter was $50.2 million, representing 23% operating margin, compared with pro forma operating income of $51.6 million, or 24% operating margin, for the fourth quarter of 2004. GAAP operating income for the 2005 fourth quarter was $43.4 million, representing 19% operating margin, compared with operating income of $34.4 million, or 16% operating margin for the fourth quarter of 2004.
Pro forma net income for the fourth quarter reached $42 million, or earnings of $0.45 per share on a diluted basis (EPS). This compares with pro forma net income of $38.5 million, or EPS of $0.40 for the 2004 fourth quarter. GAAP net income for the 2005 fourth quarter was $28.4 million, or EPS of $0.31. This compares with GAAP net income of $24.1 million, or EPS of $0.25 for the fourth quarter of 2004.
Pro forma amounts exclude amortisation of certain expenses including certain purchased intangibles, unearned stock-based compensation and restructuring costs.
"We're very pleased with our performance for the year, which marks another solid year for Sybase. We achieved our financial objectives on revenue and EPS growth, margin improvement, and cash flow from operations, as promised at the beginning of the year," said John Chen, chairman, CEO and president of Sybase.
"Sybase benefited from strong growth in our mobile/wireless business and renewed growth in our database business," added Chen.
"The mobile/wireless revenues increased 23% year-over-year, while the combined licence revenue from our analytics engine, Sybase IQ, and our flagship database, Adaptive Server Enterprise, grew 9% in 2005.
"This has been a very productive year for Sybase," comments Sybase SA CEO Alan Cowley. "Our results validate the plans we put in place to grow revenue and expand profitability. Given the continued strength of our core business, and our leadership in mobile computing and business intelligence, we expect another successful year in 2006.
"Sybase delivered on its commitment to top-line revenue growth, and exceeded expectations on the bottom line as well," he added.
"Sybase's solid balance sheet, strong cash flow and sustainable business model will maintain our strong momentum into 2006."
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Sybase is 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: http://www.sybase.com
Sybase SA
Sybase SA is the sole African representative of Sybase Inc (USA), one of the largest global independent software companies, and has offices across the continent. Sybase's open architecture solutions provide the data management and mobility necessary to create the unwired enterprise. For more information, visit the Sybase SA Web site: http://www.sybase.co.za
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