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Sybase recovery continues

Database developer Sybase Inc. appears to be continuing its recovery -- even in the face of withering competition from Oracle Corp.
Written by Sean Silverthorne, Contributor

Database developer Sybase Inc. appears to be continuing its recovery -- even in the face of withering competition from Oracle Corp. and Microsoft Inc.

Over the last few weeks Wall Street analysts have been upgrading the stock. Shares have been trading near 52-week highs, and on Thursday the company reported results in line with street expectations.

In the third quarter ended September 30, Sybase earned $5.2 million, compared with a $52.6 million loss a year ago. That loss included a $49.2 million restructuring charge.

Sales rose to $244.2 million from $237.6 million the previous quarter, but were still down from the $250.2 million in the year-earlier period.

Cash totaled $229.9 million, up $31 million.

It was the fourth consecutive profitable quarter following three quarters of losses.

In addition, Sybase server license revenue was up 5 percent sequentially from last quarter and 1 percent year over year, the Emeryville, Calif., company reported.

Sybase benefited from shipment in the quarter of its next-generation database, Adaptive ServerEnterprise 11.5, as well as its PowerJJava development tool and Jaguar CTS component transaction server.

Sybase stumbled when Adaptive ServerEnterprise, previously called SQL Server, encountered a host of problems. Also, like rival Informix, the company invested in some products that bore no fruit. Following the departure of CEO Mark Hoffman, his replacement, Mitchell Kertzman, reorganized the company, eliminated some products and put Sybase on a better financial footing, analysts said.

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