Sybase looks to 2002 for silver lining

NEWS Database software maker Sybase expects the attacks in the US to hit high-tech firms this year, but believes its revenue will grow eight to ten per cent in 2002. According to Reuters, John Chen, chief executive at Sybase said: "Consumer spending is definitely being affected, partly due to the uncertainty over what the next set of actions of the US government is going to be." In the short term, Chen sees business prospects as being "very weak", as existing projects for customers are put on hold and new projects, which naturally account for sales growth, will be limited. "The tragedy has shaken the confidence of individuals and will have a profound, negative impact. I am concerned about spending in the run-up to the Christmas season," said Chen. The company will focus on helping its customers rebuild their systems at no charge, which will lead to a negative effect on Sybase's revenues. Chen said: "The economy is weak, the customer needs to rebuild, and consumer confidence is low - that equation tells us that the business is not going to be very robust going forward." Chen expects slower revenue growth in 2002, which was reduced to between eight-to-ten per cent. This was he said was because of the general downturn in the global economy and not because of the tragedy in New York.