Sybase raises forecast after 3Q earnings beat

Sybase raises annual forecast after 3rd-quarter earnings beat Wall Street estimates

• On 12:50 pm EDT, Thursday October 22, 2009

DUBLIN, Calif. (AP) -- Mobile phone software maker Sybase Inc. raised its annual forecast after beating Wall Street estimates Thursday with a 20 percent increase in third-quarter net income.

The company said net income in the three months ended Sept. 30 rose to $39 million, or 43 cents per share, from $32 million, or 37 cents per share, in the same period a year ago.

Adjusted for one-time items such as restructuring costs, Sybase said its income rose 18 percent to $56 million, or 63 cents per share.

Revenue grew 3 percent to $293 million, bolstered by gains in database licensing revenue and messaging services but hurt by currency movements.

Analysts polled by Thomson Reuters predicted Sybase would earn an adjusted 57 cents per share on $281 million in revenue.

Chief Executive John Chen said in a statement the company was "encouraged by the strategic business wins we secured during the quarter with Verizon, Siemens, and IBM to build mobile applications on Sybase technology."

The company raised its revenue guidance for the year to between $1.14 billion and $1.15 billion, up from $1.11 billion to $1.12 billion previously.

It also expected adjusted earnings per share to reach $2.33 to $2.35, up from $2.23 to $2.27.

Sybase shares were down 26 cents at $40.90 in afternoon trading Thursday.

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