Sybase will announce first quarter results at or above analysts’ expectations when the figures are unveiled on April 22, says CEO John Chen. I am very comfortable with the Street expectations of our earnings and I think there is a reasonable, 50-50 chance that we could beat them, he said at a meeting with analysts in London yesterday.
However, following disappointing fourth-quarter and full-year 1998 results, expectations are low. The First Call consensus earnings per share estimate weighs in at only one cent for the first quarter.
Nevertheless, Chen expects Sybase’s financial position to improve throughout 1999, albeit at an unspectacular rate. He says the company will enjoy slight to moderate revenue growth, improvements in operating margins and continued positive cash flow throughout the year. Research and development will be maintained at about 17% of revenues.
At the same time, Chen also fleshed out details of the company’s recently-announced reorganization plan, the result of several brainstorming sessions with top dollar management consultancy Bain & Company. Sybase will concentrate its core database business on three vertical markets: Finance, its strongest sector where it claims a 70% market share; telecommunications, where it has lagged behind the market in recent years; and, medical.
