Sybase Posts Profitable QuarterSybase Posts Profitable Quarter

Sybase Inc. stayed solidly in the black in its third quarter. For the three months ended Sept. 30, the supplier of database, integration, and infrastructure software reported earnings of $11.3 million, or 12 cents per share, on sales of $203.0 million. That compares with a loss of $7.1 million, or 7 cents per share, on sales of $226.8 million in the same period a year ago.

But a worrisome decline in license fees, a key indicator of future growth prospects, continued during the quarter. License-fee revenue dropped by 13% year over year, to $78.8 million. Service-related revenue declined 8.8%, to $124.3 million. Sybase's profitability is the result of its tight expense control.

For the nine months ended Sept. 30, Sybase reported a loss of $84.9 million, or 84 cents per share, on sales of $619.3 million. That compares with a loss of $31.7 million, or 34 cents per share, for the same period one year earlier.