February 28, 2008 - Sybase, Inc. (SY-NYSE) has your databases covered. Long known for its relational database products, the company offers software that stores and distributes content throughout enterprises. Sybase's Infrastructure Platform Group (IPG) encompasses database servers, data warehousing, and business analytics; it also includes banking, payment, and trading transaction products. Sybase's iAnywhere Solutions division provides software and services that allow information to be delivered to mobile devices, while its Sybase 365 segment provides mobile messaging applications. The company's customers span government, financial services, health care, and telecom markets.

It gets a lot of shelter from earnings. They were $1.31 in 2007, up from $1.03 in 2006 and 92 cents in 2005. Next year analysts are looking for $1.55. Over the next 5 years, they predict annual gains averaging 15%. Revenues topped $1.025 billion last year. Expectations are for $1.085 billion this year. Analysts think revenues will grow, on average, 10.5% a year over the next 5.

Of course, they have no subprime mortgages or bad credit concerns. That alone may account for their relatively good performance. More likely it's because business is good. International sales are ramping as new products attract new customers. The company also benefits from messaging, a technology that is increasingly in demand in mobile applications and services. Furthermore, the company is hiking prices in its maintenance contracts, to match its competitors. These contracts are like annuities and give some comfort as a core revenue source.

A new area of focus are the financial services and telco companies with products and services using mobile computing and messaging technology. An example: mobile banking.

With cost cutting a priority, the company is expected to increase its net profit margin this year to 12.4%, up from 11.9% last year. Other numbers: current assets are over 2 times current liabilities. License fees were 33.6% of revenues in 2007 while Services were 66.4%. Debt is 33% of capital. Market Cap is $2.5 billion with 90.048 million shares outstanding. Return on Equity was 13.1% in 2007.

A couple of other factors should contribute to the well being of SY. First is the announced buyback of $200 million worth of stock this year. Second, is that the company is not solely dependent in the U.S. economy. Its international revenues are a significant part of total sales. Those markets are forecasted to fare better than the U.S. for the next year.

There is a lot of good going on at Sybase, and the stock reflects that. This is the kind of stock that isn't going to give an investor an overnight jump in wealth. But it is solid and steady with a price chart that has been going up slowly and surely for the last 3 years. Dig deeper if you have an interest.

Company Web site: www.sybase.com

- Ted Allrich