CEOs in Technology

PBDJ News Desk

Sybase, Inc., a provider of enterprise and mobile software, on Thursday reported financial results for the fourth quarter and full year ended December 31, 2009.

Record Achievements:

• Total revenue of $331.7 million for Q409 and $1.17 billion for full year
• Messaging revenue of $56.2 million for Q409 and $196.6 million for full year
• GAAP operating margin of 30% for Q409 and 25% for full year
• GAAP operating income of $98.6 million for Q409 and $289.7 million for full year

• Non-GAAP operating margin of 35% for Q409 and 30% for full year
• Non-GAAP operating income of $115.0 million for Q409 and $349.0 million for full year
• GAAP EPS of $1.86 for full year
• Non-GAAP EPS of $0.80 for Q409 and $2.48 for full year
• Cash flow from operations of $113.5 million for Q409 and $384.1 million for full year

Other Highlights

• Q409 total revenue up 9% year over year
• Database license revenue increased 9% for Q409 and 22% for full year
• Messaging services increased 30% for Q409 and 12% for full year
• GAAP operating income up 41% for Q409 and 38% for full year
• Non-GAAP operating income up 34% for Q409 and 31% for full year
• GAAP EPS of $0.66, up 22% for Q409
• Cash flow from operations increased 34% for Q409 and 30% for full year

2009 Fourth Quarter Results
Total revenue for the fourth quarter of 2009 grew 9% to $331.7 million compared with $305.1 million in the fourth quarter of 2008. The company reported license revenue of $123.2 million, services revenue of $152.2 million, and messaging revenue of $56.2 million in the 2009 fourth quarter.

Operating income calculated in accordance with generally accepted accounting principles (GAAP) for the fourth quarter increased 41% year over year to $98.6 million, representing an operating margin of 30%.

For the quarter, GAAP net income grew 34% year over year to $59.8 million. GAAP earnings per diluted share (EPS) grew 22% year over year to $0.66. This compares with 2008 fourth quarter GAAP net income of $44.6 million and GAAP EPS of $0.54.

Non-GAAP operating income for the 2009 fourth quarter increased 34% year over year to $115.0 million, representing a 35% operating margin.

Non-GAAP net income for the fourth quarter grew 14% year over year to $72.4 million. Non-GAAP EPS grew 4% year over year to $0.80.

Non-GAAP amounts exclude the amortization of certain purchased intangibles, stock-based compensation, restructuring costs, charges related to the impairment of auction rate securities, imputed interest related to our convertible debt, gains or losses on assets held for employees in a deferred compensation plan, and the tax effect of these and related items.

Accompanying this release is a reconciliation from GAAP to non-GAAP amounts for the fourth quarter of 2009 and the year ended December 31, 2009 and the comparable prior-year periods.

Cash flow from operations increased 34% year over year to $113.5 million in the quarter.

2009 Full-Year Results
Total revenue for 2009 increased 3% year over year to $1.17 billion. License revenue for the year increased 5% year over year to $402.8 million. Services revenue was flat at $571.2 million, and messaging revenue increased 12% year over year to $196.6 million.

GAAP operating income increased 38% year over year to $289.7 million, representing a GAAP operating margin of 25%. GAAP net income grew 28% year over year to $164.0 million, and GAAP EPS grew 27% year over year to $1.86.

Non-GAAP operating income increased 31% year over year to $349.0 million, representing a non-GAAP operating margin of 30%. Non-GAAP net income grew 16% year over year to $218.9 million, or non-GAAP EPS of $2.48.

Cash flow from operations increased 30% year over year to $384.1 million.

"We are very pleased to deliver another record quarter, culminating in a third consecutive year of record revenue, earnings and cash flow,” stated Chairman, CEO and President of Sybase John Chen.

“2009 marked a year of major accomplishments for Sybase as we strengthened our leadership position in enterprise computing. We secured key mobility partnerships with SAP, Verizon, Samsung and IBM and delivered innovative products in analytics, enterprise mobility, and mobile commerce. In the process, we garnered recognition for leadership in our key growth markets.

“As a result, we enter 2010 well positioned for continued momentum and ongoing market share gains as our vision increasingly resonates with our expanding customer and partner ecosystem," concluded Mr. Chen.

Balance Sheet and Other Data
At December 31, 2009, Sybase reported $1.3 billion in cash and cash investments, including restricted cash of $18.0 million.

The company repurchased $9.1 million of its outstanding common stock during the fourth quarter and a total of $94.1 million for the year. As of December 31, 2009, $83.3 million remained authorized under the company’s current share repurchase program.

Days sales outstanding (DSO) for the fourth quarter was 74.

Guidance
For the first quarter ending March 31, 2010, the company anticipates total revenue in the range of $285 million to $295 million. The company anticipates non-GAAP fully diluted EPS in the range of $0.54 to $0.56 and GAAP EPS in the range of $0.41 to $0.43.

For full-year 2010, the company anticipates total revenue of approximately $1.23 billion, non-GAAP EPS of approximately $2.59, and GAAP EPS of approximately $2.10. The company expects cash flow from operations of at least $300 million.