SYBASE LOSSES WORSE THAN EXPECTED

by CBR Staff Writer| 12 July 1996

As expected (CI No 2,947), Sybase Inc reported increased losses in its second quarter, but the results were even redder than the company anticipated last month. To combat the loss, Sybase will eliminate around 10%of its 6,100-strong workforce. After a tax provision of about $3m, primarlyto reverse the tax credit taken in the first quarter, the firm reported$24.6m losses after the $20.0m charge resulting from the acquisition of SDPSA, up from $9.2m losses last time. Both North American and European revenues fell below company expectations. Sybase CEO Mark Hoffman saidyesterday, Unfortunately, expenses were predicated on higher anticipated revenues, contributing to the loss for the quarter. Sybase also blamed changes to its sales organization and ineffective marketing for its losses.It will return to profitability as quickly as possible. Sybase reported second quarter net losses of $24.6m up from $9.2m last time which included the $20m acquisition charge on revenues up 4.1% to $249.9m. Mid-term losses were $31.5m up from $26.6m last time, including the above charge and a further $25.0m merger related charge. Revenues were $493.6m up from$456.3m last time.

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