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Original Source: FD (FAIR DISCLOSURE) WIRE
. John Chen, Sybase, Chairman, CEO, President . Jeff Ross, Sybase, SVP, CFO . Steve Koenig, KeyBanc Capital Markets, Analyst . Terry Tillman, Raymond James & Assoc., Analyst . Brad Sills, Lehman Brothers, Analyst . Brent Williams, The Benchmark Company, Analyst . Horatio Zambrano, Jefferies & Co., Analyst
SY reported 2Q08 total revenue of $282.7m. 2Q08 GAAP net income was $32.4m or $0.37 per diluted share. Co. expects total revenue of $270m-275m and GAAP EPS of $0.38-0.40 in 3Q08.
A. Key Data From Call 1. 2Q08 total revenue = $282.7m. 2. 2Q08 GAAP net income = $32.4m. 3. 2Q08 non-GAAP net income = $43m. 4. 2Q08 GAAP diluted EPS = $0.37. 5. 2Q08 non-GAAP fully diluted EPS = $0.49. 6. 2Q08 CapEx = $9.7m. 7. 2Q08 DSO = 75 days. 8. Cash balance at 06/30/08 = $606.4m. 9. Full-year 2008 total revenue guidance = approx. $1.11b. 10. 3Q08 total revenue guidance = $270m-275m. 11. Full-year 2008 GAAP EPS guidance = $1.53-1.55. 12. Full-year 2008 non-GAAP EPS = $1.98-$2.0. 13. 3Q08 GAAP EPS guidance = $0.38-0.40.
14. 3Q08 non-GAAP fully diluted EPS guidance = $0.48-0.50.
S1. 2Q08 Business Review (J.C.) 1. Highlights: 1. Delivered another record qtr. 2. Has now delivered: 1. Three consecutive record quarters. 2. Four consecutive quarters exceeding Street consensus
revenue. 3. 16 consecutive quarters exceeding consensus EPS.
3. 2007 was a record year. 1. On track to deliver yet another record year in 2008. 2. Key Metrics: 1. Total revenue was $282.7m, represents 15% growth, all organic. 1. License revenue increased 17% to $90.5m. 1. Core database license revenue grew 38% YoverY.
2. Messaging revenue continues on very strong pace growing 41%
YoverY. 3. Total service revenue 8% on strength of 10% growth in maintenance revenue. 2. Grew across all geographies. 1. International now accounts for over 50% of total revenue. 3. Non-GAAP operating income grew 33% YoverY to $63.7m. 1. Represents operating margin of 23%, up from 20% a year ago as a result that Co. continues to experience significant leverages on the broad strength across its businesses and synergy that its outlined. 4. Non-GAAP EPS grew 33% YoverY to $0.49 a share exceeding top of guidance range. 5. GAAP operating income increased 44%. 6. GAAP EPS grew 31% YoverY. 7. Cash flow from operations came in at $62.7m.
1. Record for 2Q in Co.'s history and increase of 16% YoverY.
8. 38% growth in database license revenue and solid overall
performance in IPG segment was driven by mainly robust demand
for: 1. ASC flagship database or options associated with it. 2. IQ analytics server. 3. ASE Database & IQ Analytics Server: 1. Attracted total of 234 new ASE customers and 48 new IQ customers. 2. Key Wins: 1. Industrial Bank of Korea.
2. United States Air Force. 3. GE Healthcare. 4. American Imaging Management. 5. Asics Corp. 3. One key new customer win for IQ was Hana Bank which happens to be the largest retail bank in Korea. 1. Co. was selected for very large enterprise data warehouse project. 2. Co. beat Teradata in this deal in part because of its ability to manage very large data volumes for a feature called local stores. 3. Co. believes IQ is increasingly viewed as leading analytic server in Korean financial vertical and beyond. 4. In Korea today, IQ is used by eight out of Top 10 banks, all the Top 4 credit card companies, and Top 3 insurance companies for analytics, risk management, and enterprise data warehousing.
5. Co.'s intention is to further extend IQ leadership across
Asia-Pacific region. 4. Co. starts seeing some projects coming under the Green IT initiative driving more opportunities for IQ mostly due to: 1. Data compression features are excellent and marketing leading. 2. Ability to reduce data center carbon footprint. 4. iAnywhere: 1. License revenue grew 6% YoverY and 20% sequentially. 2. Currently SY is the only vendor to be rated as the leader in three enterprise mobility categories. 1. Multi-access gateway, which is mobile middleware. 2. Enterprise mobile email. 3. Mobile device management and security. 3. Has been a long-time leader in mobile and embedded database. 4. Aforementioned three technologies; middleware, email, device management and security; are brought together in Co.'s new Mobile Office suite which was launched in 2Q08. 1. It is an integrated server-based suite in mobilizing business practices. 2. Co. is seeing a lot interest in this. 5. A few key wins including:
1. US Air Force. 2. Telefonica Solutions. 3. Italian Yellow Pages. 4. Italian Post. 6. During 2Q08, added total of 707 new mobility customers. 5. Messaging: 1. Accelerating message volume, expanded use of messaging by the enterprise mainly is the reason why it drove strong demand for Co.'s messaging services. 2. In mobile banking Tier 1 banks are increasingly using
messaging for mobile banking services and Tier 2 banks are
deploying the full platform, that is SMS, WAP and SIG clients.
3. Since launch of Co.'s mBanking sales efforts and initiative at the start of this year, 17 institutions have selected Co.'s
mobile banking solution or its messaging services to reach
their customer directly. 4. Banks and other enterprise users are driving very robust demand for Co.'s application messaging services (AM). 1. AM revenue grew 57% YoverY. 5. Based 4Q07 worldwide messaging volume, SY now ranks as: 1. Largest non-Telco processor of messaging volume. 2. Fifth …