Sybase on Wednesday reported strong growth in its core
relational database system, its warehouse database server, and its
mobile products resulted in revenue growth of 15% in its second
quarter compared with the same quarter a year ago.
Revenue was $282.7 million, compared with $245 million last
year.
Its pace of growth exceeded the 12.6% rate of growth for the
database market as a whole during 2007 and most of its relational
database competitors last year, though Sybase has a much smaller
share of the market than Oracle, IBM, or Microsoft. Microsoft's SQL
Server was the fastest-growing system by revenue in 2007 at a rate
of 14% and represents 18.5% of an $18.8 billion market. Sybase
holds 3.5% of the market.
Sybase license revenue, a leading indicator for database
vendors, was up 17% to $90.5 million year over year for the second
quarter ended June 30. License revenue represents new systems sold,
while maintenance revenue, often grouped under "services," is a
renewable source year after year. Services revenue was up 8% to
$146.6 million, said John Chen, chairman, CEO, and president.
"We have now delivered three consecutive record quarters," Chen
noted in announcing the results.
Sybase is a market leader in mobile databases and synchronizing
mobile databases through its messaging system and mobile
middleware. Messaging revenue grew 41% to $45.6 million.
Sybase said its IQ analytics server, a column-oriented database
system that produces data warehouse-type results faster than
standard systems, was one of its fastest-growing product segments
in 2007. Results for IQ analytics server in the second quarter 2008
were not broken out.
Chen attributed Sybase's resurgence after years of stagnant or
declining growth to "our unwired enterprise strategy ... additional
growth catalysts include new offerings such as risk analytics, data
clustering, Mobile Office, mobile banking and next-generation
mobile messaging."
Sybase management raised guidance on 2008 revenue, earnings, and
cash flow due to the stronger than expected second-quarter
performance. It is anticipating total revenue around $1.1 billion
with earnings per share of $1.98 to $2. Cash flow from operations
is expected to be $250 million, Chen said.