Thursday January 21, 4:06 pm Eastern Time
Company Press Release
SOURCE: Sybase, Inc.
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 - news) 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® Enterprise, Adaptive Server® Anywhere,
and Replication Server® 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.
Great turnaround situation...CEO states his company's worth at least $21 a share. |
