Sybase posts Q2 profit despite weak sales

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Sybase posts Q2 profit despite weak sales

Database vendor Sybase posted a profit for its second quarter, largely as a result of cost-cutting measures over the past year.

The company reported net income of $20.2m (£12.82m) for the quarter ended 30 June, or 20 cents per share, compared with a loss of $39.5m, or 42 cents per share, in the same quarter last year.

For the second quarter, Sybase reported pro forma diluted earnings per share of 26 cents, exceeding the 24 cents per share analysts had predicted, according to a Thomson Financial/First Call survey.

Some items excluded from the pro forma results are amortisation of goodwill and purchased intangibles, stock compensation expense and restructuring charges.

Revenue for the quarter came in at $205.3m, a 12.4% decline compared with revenue of $234.7m in the same quarter last year.

Sybase, which competes against software powerhouses such as Microsoft, Oracle and IBM, had previously forecast revenue of $215m to $220m, resulting in earnings of 25 cents per share. However "persistent weakness in the overall economy" caused the company to revise those figures downward earlier in the month.

According to Sybase, its core database and infrastructure business "remains strong" and the company was seeing "positive momentum" in Asia, and in China in particular.

As a result, Sybase is "cautiously bullish" on the prospect for a recovery in the upcoming quarters, said chief executive officer and president, John Chen.

Cost-cutting within the company will continue and Sybase is likely to divest itself of "non-core" businesses and operations, according to Chen.

The company also plans to grow its database business with increased investments in technology, including security advancements, as well as making sure that all of Sybase's products run on Linux.

Sybase will broaden its channel to the education and media market via a deal with Apple, while also focusing on database-related applications, Chen added.

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