Sybase Database Business Grows in Q2

Sybase reports a strong second quarter, with profits increasing 26 percent year over year. Some of that can be attributed to Sybase's database business, which released a new version of Sybase IQ earlier in 2009.

Sybase on July 21 reported double-digit growth in its database business as part of a solid second quarter.

According to the company, database license revenue increased 23 percent year over year. Overall, Sybase's second-quarter profit jumped 26 percent to $37.6 million, up from $29.8 million a year earlier.

The company released Sybase IQ 15.1 July 14 with new functionality to improve in-database analytics. The update came just five months after the company delivered Sybase IQ 15.

"We are pleased to deliver another record performance in these challenging economic times, highlighted by second quarter all-time highs in operating margin, net income and cash flow, as well as double-digit growth in database license revenue, operating income and earnings," CEO John Chen said in a statement.

The company also saw 4 percent growth in mobile software licensing. The total revenue for the second quarter was $278 million, down slightly from $282.7 million for the same period in 2008. Overall services and licensing revenues were $139 million and $94.1 million respectively. The company's messaging business stood at $44.2 million for the quarter.

Due to the company's performance in the first half of the fiscal year, Sybase officials said they are raising total revenue guidance to a range of $1.11 billion to $1.12 billion from prior expectations of approximately $1.10 billion.

"During the quarter, we launched risk analytics with time series capabilities, expanded partnerships with the Sybase Unwired Platform, and were selected to provide the technology platform on a number of mBanking and mCommerce opportunities," Chen said. "Due to our stronger-than-expected performance in the first half of this year, we are raising our full-year 2009 financial guidance for the second time this year."