DUBLIN, Calif. - July 18, 2002 - Sybase, Inc. (NYSE: SY), a leading enterprise infrastructure and integration company, today announced results for the quarter ending June 30, 2002. For the second quarter, Sybase reported pro forma diluted earnings per share (EPS) of $0.26. This compares to second quarter 2001 pro forma diluted EPS of $0.24. Total revenues for the second quarter 2002 were $205.3 million, compared to second quarter 2001 revenues of $234.7 million.
"Sybase executed well in the second quarter, reporting improved margins and positive cash flow from operations," said John Chen, Chairman, CEO and President of Sybase, Inc. "We’re starting to see tremendous interest in new vertical solutions like our PATRIOTcompliance Solution, Communications e-Business Solution, and our HIPAA Studio, while our core database and infrastructure business remains strong. Also, we continue to experience positive momentum in Asia, and in China in particular, with extremely competitive wins like SINOPEC, China’s largest oil company," Chen said.
"There has never been a better time for Sybase to invest in its future," Chen added. "In addition to building new technology solutions, we plan to make a meaningful increase in our field sales force in the coming quarters, and to focus on making all of our divisions profitable. We intend to fund these initiatives by reallocating existing resources to achieve greater efficiencies in our business worldwide."
For the second quarter 2002, Sybase reported pro forma net income of $25.9 million versus $22.6 million for the same period in 2001. Pro forma results exclude amortization of goodwill and purchased intangibles, stock compensation expense, restructuring and other related charges. Complete details on the company’s pro forma and as-reported results are described in the financial exhibits accompanying this release.
On an as-reported basis, second quarter net income was $20.2 million, compared to a loss of ($39.5) million in the second quarter 2001. Second quarter 2002 reported EPS was $0.20 on a diluted basis compared to ($0.42) in the same period last year.
As of June 30, 2002, Sybase reported $403.3 million in cash and cash investments, including restricted cash of $2.5 million, representing approximately $4.13 per outstanding share at the end of the second quarter. During Q2, Sybase repurchased an additional $23.5 million of its stock, with approximately $100 million of its current share repurchase authorization remaining. Days sales outstanding for the three months ending June 30, 2002 was 55 days.
Significant customer and partner wins in the second quarter included Advanced PCS Healthcare, AT&T, Automatic Data Processing (ADP), Aviall Services, Inc., BISYS, Brokerage America/Brokerage Systems, Commonwealth of Massachusetts, ComPsych, Cox Target Media, Inc., Fifth Third Bank, Florida Department of Transportation, Harborside, ING Ferri, Market Axess, Mellon HR Solutions, MISYS Healthcare System, Nielsen Media Research, Oxford Health Plan, Private Healthcare, South Financial Bank, State of Pennsylvania and Universal Care. In Asia Pacific, Sybase continues to build momentum with over 26 strategic customer wins including the Shanghai Police Bureau, China Ocean Shipping Company (COSCO) and China Petroleum & Chemical Corporation (SINOPEC) in China; Taipei Water Department in Taiwan; Indian Railways and HDFC Bank in India; Total Access Telecommunication Public Company Limited in Thailand; NEC Infrontia, NTTPC Communications, Inc., and Sony Corporation in Japan; Hanaro Telecom, Korea Life Insurance, and Samsung Electronics Co. in Korea, and; National Australia Bank Wholesale Financial Services and ANZ Bank in Australia.
About Sybase, Inc.
Sybase is the enterprise infrastructure company that bridges heterogeneous technologies. With industry-leading Enterprise Portal (EP), mobile and wireless solutions, essential integration products, and high performance database management systems, Sybase is one of the largest independent software companies in the world. For more information visit the Sybase website: http://www.sybase.com. # # # # Sybase is a registered trademark of Sybase, Inc. Open Client, Open Server, Adaptive Server, Financial Fusion, TradeForce, GlobalFIX, iAnywhere, and iAnywhere Solutions, are trademarks of Sybase, Inc., or its subsidiaries. "®" indicates trademark registration in the United States of America.
All other company and product names mentioned may be trademarks of the respective companies with which they are associated.
Forward Looking Statements: Statements in this release concerning Sybase, Inc. and its prospects and future growth are forward looking statements that involve a number of uncertainties and risks. Factors that could cause actual events or results to differ materially from those suggested by these forward looking statements include sales productivity; possible disruptive effects of organizational or personnel changes, political unrest or acts of war; market acceptance of the companies’ products and services; customer and industry analyst perception of the company and its technology vision and future prospects; rapid technological changes; competitive factors; unanticipated delays in scheduled product availability dates; interoperability of the company’s products with other leading software application products; general business conditions; volatility of technology stocks generally, market growth rates in the client/server and Internet software markets; and other factors described in Sybase, Inc.’s reports filed with the Securities Exchange Commission, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2002, and its Annual Report on Form 10-K for the year ended December 31, 2001.