SYBASE, INC. REPORTS YEAR-OVER-YEAR GROWTH IN Q4 1998
Company Sees Significant Growth in Database License Revenues;
Announces Third
Consecutive Quarter of Operating Profitability
EMERYVILLE, Calif., Jan. 21 /PRNewswire/ -- Sybase, Inc. (Nasdaq:
SYBS) today announced results for the fourth quarter and year ended
December 31, 1998. Revenues for Q4 1998 were $232.5 million, compared
with $223.2 million recorded in the fourth quarter of 1997. Net income
for the fourth quarter of 1998 was $7.9 million, or $.10 per share
before a restructuring charge of $22.4 million. Inclusive of the
restructuring charge in fourth quarter, 1998, the company posted a net
loss of $14.5 million, or $.18 per share. Sybase ended the fourth
quarter with approximately $249.6 million in cash and investments, up
from $220.5 million in the third quarter, 1998. Days sales outstanding
in accounts receivable for the fourth quarter were 77 days.
Sybase experienced growth in its server business, including the
Adaptive Server(R) Enterprise, Adaptive Server(R) Anywhere, and
Replication Server(R) product lines. Server license revenues were up
approximately 32% sequentially and approximately 20% year-over-year.
"I am pleased to report an increase in year-over-year revenue growth in
the fourth quarter, as well as our third consecutive quarter of
operating profits. It is particularly gratifying to see strong growth
in the database arena," said John Chen, chairman, CEO and president of
Sybase. "In 1998, we began to execute a solid plan for growth. We
look forward to capitalizing on this momentum in 1999 as we
aggressively pursue new market opportunities and extend beyond our
traditional enterprise software offerings with our four new business
units."
Revenues for fiscal year 1998 were $867.4 million, compared with $903.9
million recorded in 1997. The company posted a net loss of $93.1
million, including restructuring charges of $74.1 million, or $1.15 per
share, compared to a net loss of $55.4 million, or $.70 per share in
1997.
"We're delighted with the progress we've made in Q4, 1998," said Jack
Acosta, Sybase chief financial officer. "Not only did we post our
third consecutive quarter of operating profits, but we also grew
license revenue year-over-year," Acosta said.
Fourth quarter 1998 highlights included the formation of a new global
organizational structure and the creation of four divisions designed to
fuel revenue growth. The four divisions -- Internet Applications
Division, Business Intelligence Division, Enterprise Solutions Division
and the previously announced Mobile and Embedded Computing Division --
will enable the company to extend beyond its traditional enterprise
software offerings, more aggressively pursue new market-driven
opportunities, and quickly deliver to customers leading,
industry-specific computing solutions.
Other significant fourth quarter announcements included the opening of
the Asia Development Center, introduction of Enterprise Data
Studio(TM); the successful launch of Enterprise Application Studio(TM)
3.0 and Enterprise Application Server(TM) 3.0; and the announcement of
several strategic partnerships in the mobile and embedded computing
arena. During the fourth quarter, the Mobile and Embedded Computing
Division shipped Adaptive Server Anywhere for Windows CE. SQL Anywhere
Studio(TM) and its UltraLite(TM) deployment technology were awarded top
honors in the Desktop Category by conference attendees at Giga
Information Group's Emerging Technology Scene (ETS) conference in
December.
In the fourth quarter 1998, Sybase demonstrated its strength in core
competencies across its targeted vertical markets, including finance,
banking and insurance, health care, telecommunications and public
sector. Sybase experienced a number of significant customer wins with
companies such as Alcatel, Alta Bates Medical Center, Blue Cross, Blue
Shield of the National Capital Area, Citicorp, Comptronic, ELVIA
Versicherung, FedEx, Fleet Mortgage, Great Plains Software, Manulife
Financial, Prudential Insurance, Texas Department of Public Safety,
Textron Corporation, SANDVIK and Vantive Corporation.
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