Sybase Inc may be turning the corner back to profitability (CI No 3,646), but it could still be a hard struggle for the Emeryville, California company’s European operation. Despite what he claimed to be a solid first quarter in which internal revenue goals were met, Colin Temwick, VP of European operations, complained that the instability of the euro is undermining the company’s efforts in the region. We’ve seen an 8% decline of the euro against the dollar, which means we can work hard and even overperform, and still get lower and lower returns, he said.
Sybase takes 75% of European revenue in euros with the rest coming in UK sterling. The British currency has offered some shelter from the strengthening dollar, but has still slipped around 4% in the last 12 months. Nevertheless, with Europe close to completing its own restructuring, Temwick predicted that sequential revenue growth and profit is the target, and will be made this year. Key growth areas are expected to be investment banking, financial services and the telecommunications billing sector, all currently coloring the skills profile of Sybase’s local consultant and analyst recruitment drive.
