Sybase Mixed, But Good Enough (SY)

Sybase, Inc. (NYSE:SY) has chalked up a win in its earnings report by the looks of it.  The company posted non-GAAP earnings of $0.56 EPS on roughly a 2% decline in revenues to $278 million.  Thomson Reuters had consensus estimates at $0.52 EPS and $273.07 million in revenues.  GAAP EPS up 28% to $0.43 and the cash flow from operations rose 9% to $68.3 million.

License revenue increased 4% year over year to $94.1 million and would have been up 11% in constant currency, while its database license revenue increased 23% and would have been up 30% in constant currency.  Mobile software license revenue rose 4% and would have been up 11% in constant currency.  Services revenue was $139.6 million, and messaging revenue was $44.2 million in the 2009 second quarter.

Sybase’s second quarter total revenue was hit by 7% from negative foreign currency exchange rates, which would have been a gain of 5% year over year.  The company ended the quarter with $816.8 million in cash and equivalents, including restricted cash of $18.0 million.

Third quarter revenue guidance is in a range of $275 to $280 million, This anticipates 4% to 6% growth before an estimated 7% negative currency impact; non-GAAP earnings should be $0.55 to $0.57 EPS.  Estimates are $0.55 EPS and $278.1 million in revenues.

Guidance for Fiscal-2009 has been raised slightly to $1.11 to $1.12 billion from $1.10 billion, while non-GAAP EPS is put in a range of $2.23 to $2.27 EPS from a previous range of $2.20 to $2.24.  Those consensus estimates are $2.23 EPS and $1.12 billion in revenues.

Shares closed at $32.39 yesterday, and the 52-week range is $22.20 to $36.99; pre-market trading shows Sybase up 3% at $33.70.

JON C. OGG
JULY 21, 2009