Sybase Reports Poor Earnings, As Expected
EMERYVILLE, Calif. (AP) _ After weeks of speculation that forced its stock to plummet and shareholders to sue, Sybase Inc. on Thursday announced a first quarter loss of $17.4 million.
The loss amounted to 25 cents per share. A year ago, it earned $13.9 million, or 19 cents per share, during the same quarter.
The loss includes a charge of $25 million related to its merger with Powersoft Corp. Both companies make software for running computers in networks.
Revenue was $216 million, up 32 percent from $163 million a year ago.
The year-ago results were restated to include Powersoft. The companies completed their $940 merger in February.
``We are disappointed with our financial results this quarter,″ Chairman and Chief Executive Officer Mark Hoffman said in a statement.
``For the first time in 15 quarters since becoming a publicly traded company, Sybase did not meet investors’ financial expectations.″
He said the company has identified its problems and is working to correct them.
Sybase stock has declined more than 40 percent since April 4 when the company said it expected revenue and earnings to fall short of expectations. Its shares closed down 87 1/2 cents at $22.87 1/2 on the Nasdaq Stock Market. The company announced its results after the market closed.
Analysts have said Sybase fell behind competitors in the flexibility of its core product, complex database software, to perform across a variety of types of computers.