COMPANY PRESS RELEASE: Sybase, a leading e-business infrastructure and database provider, has reported fourth quarter pro forma earnings per share (EPS) of $0.31 and full year EPS of $0.99 on a diluted basis, exceeding First Call analyst consensus estimates by $0.07 per share.
This compares to 2000 fourth quarter pro forma diluted EPS of $0.50, which included a tax benefit of $0.10 per share, and full year pro forma diluted EPS of $1.25.
Sybase’s solid fourth quarter performance allowed us to exit 2001 on a high-note, said John Chen, chairman, president, and CEO of Sybase. I am very pleased with the strong foundation we have laid for 2002. Investments in our strategic initiatives are showing positive results with our Financial Fusion subsidiary reporting positive operating earnings for the first time, and iAnywhere Solutions reporting its strongest revenue and operating profit ever. Continued operating margin improvement will allow us to deliver increased pro forma EPS in 2002, Chen added.
Chen said the company is now raising 2002 pro forma EPS estimates to a range of $1.08 to $1.10, on top line revenue growth of approximately 5 percent. The company’s previous pro forma EPS guidance for 2002 was approximately $1.02.
Sybase’s pro forma net income for the fourth quarter of 2001, which excludes amortization of purchased intangibles, stock compensation expense, and restructuring and other related charges, was $31.3 million versus $45.4 million for the fourth quarter of 2000. Full year 2001 pro forma net income was $96.6 million versus $115.3 million reported in 2000. Complete details on the company’s pro forma and as reported results are described in the financial exhibits accompanying this release.
Total revenues for the fourth quarter were $236.3 million compared to fourth quarter revenues of $260.5 million last year. Total revenues for the full year 2001 were $926.1 million compared to $960.5 million reported for 2000.
On an as reported basis, which includes amortization of purchased intangibles, stock compensation expense, and restructuring and other related charges, fourth quarter EPS was $0.06 on a diluted basis compared to $0.39 reported in the same period last year. Net income on an as reported basis for the fourth quarter 2001 was $6.1 million, compared to $35.5 million in the fourth quarter 2000. For the full year 2001, as reported EPS on a diluted basis was ($0.27) compared to $0.78 for the full year 2000. Net income (loss) for the full year 2001 was ($25.5) million versus $72.1 million last year.
Sybase ended 2001 with $346.6 million in cash and cash investments, including restricted cash of $3.4 million. This represents approximately $3.51 of cash per issued and outstanding share at the end of the fourth quarter. Sybase continued to repurchase its stock during the fourth quarter, and had approximately $140 million of its current share repurchase authorization remaining at year end. Days sales outstanding for the three months ending December 31, 2001 was 71 days.
Sybase’s continued to win competitive deals in the fourth quarter across numerous market segments. In the financial services market, Sybase leveraged its solid reputation on Wall Street to win customers such as Guardian Life Insurance, ADP, Merrill Lynch, West LB Panmure, New York Mercantile Exchange, California Federal Bank, Cendant Corporation, and Moore Capital. Sybase’s also added several customers to its growing healthcare roster, including Synavant, eCHN (Electronic Child Health Network), HealthNow, and Physician’s Tele Network.
Other successful customer wins came from the telecommunications sector, which included Gan Su Telecom Sichuan, Shan Xi Telecom, Xin Jiang Telecom, ChungHwa Telecom Co. Ltd., and Globe Telecom. Sales to federal, state and foreign governments remained strong in the fourth quarter with sales to the Food and Drug Administration, the state of Oklahoma, the Land Transportation Office of the Philippines, the Land Registration Authority of the Philippines, the Ministry of Government Administration and Home Affairs of Korea.
In other market segments, Sybase had a number of competitive wins including Rational Software, Alvion Technologies, Inc., Lowe’s Companies, Inc., Daimler-Chrysler, C-NET, and DTI Publishing. Sybase also continued its strong sales presence in Asia with competitive wins including Standard Chartered Bank, Industrial Bank of Korea, DBS Bank, Samsung Life Insurance Co., Korean Exchange Bank, NanJing Local Tax Bureau, Beijing Wang Fu Jing Department Store Group Co., Ltd., Renault Samsung Motors, Woong Jin Coway Development Co. Ltd., and Universiti Sains Malaysia. Most notable is Sybase’s win with the People’s Bank of China, to provide database technology for a national payment system.