DUBLIN, Calif. – January 26 , 2006 – Sybase, Inc. (NYSE: SY), a leading provider of enterprise infrastructure and wireless software, today reported financial results for the 2005 fourth quarter and year ended December 31, 2005.

For the year, total revenues increased 4% to $818.7 million from $788.5 million for 2004. Total license revenue for the year increased 6% to $291.7 million from $275.9 million in 2004. Pro forma operating income increased 11% to $148.9 million, representing 18% margin. Operating income calculated in accordance with generally accepted accounting principles (GAAP) for 2005 increased 36% to $121.9 million, representing 15% margin. Pro forma net income for the year increased to $117.8 million, or earnings per diluted share of $1.26. This compares with pro forma net income of $101.6 million, or earnings per diluted share of $1.04, for 2004. GAAP net income for 2005 increased to $85.6 million, or GAAP EPS of $0.92, compared with GAAP net income of $68.0 million, or GAAP EPS of $0.69 for 2004.

Total revenues for the fourth quarter increased to $223.0 million compared with $218.6 million for the fourth quarter of 2004. License revenues grew 5% to $91.3 million for the 2005 fourth quarter compared with $87.2 million for the same quarter a year ago.

Pro forma operating income for the 2005 fourth quarter was $50.2 million, representing 23% operating margin, compared with pro forma operating income of $51.6 million, or 24% operating margin, for the fourth quarter of 2004.

GAAP operating income for the 2005 fourth quarter was $43.4 million, representing 19% operating margin, compared with operating income of $34.4 million, or 16% operating margin for the fourth quarter of 2004.

Pro forma net income for the fourth quarter reached $42.0 million, or earnings of $0.45 per share on a diluted basis (EPS). This compares with pro forma net income of $38.5 million, or EPS of $0.40 for the 2004 fourth quarter.

GAAP net income for the 2005 fourth quarter was $28.4 million, or EPS of $0.31. This compares with GAAP net income of $24.1 million, or EPS of $0.25 for the fourth quarter of 2004.

Pro forma amounts exclude amortization of certain expenses including certain purchased intangibles, unearned stock-based compensation, and restructuring costs. Accompanying this release is a r econciliation of pro forma and GAAP amounts for the 2005 fourth quarter and year-end.

“We’re very pleased with our performance for the year, which marks another solid year for Sybase. We achieved our financial objectives on revenue and EPS growth, margin improvement, and cash flow from operations, as promised at the beginning of the year,” said John Chen, chairman, CEO and president of Sybase.

“Sybase benefited from strong growth in our mobile/wireless business and renewed growth in our database business,” added Mr. Chen. “The mobile/wireless revenues increased 23% year-over-year, while the combined license revenue from our analytics engine, Sybase IQ, and our flagship database, Adaptive Server Enterprise, grew 9% in 2005.

“We’re looking forward to continuing our strong performance in 2006,” concluded Mr. Chen.

Balance Sheet and Other Data
At December 31, 2005, Sybase reported $865.3 million in cash and cash investments, including restricted cash of $5.4 million. The company generated $38.5 million in cash flow from operations in the fourth quarter and $170 million for the full year.

Sybase repurchased approximately $24.5 million worth of its stock during the 2005 fourth quarter. The company repurchased a total of $169.1 million worth of its stock in 2005. Approximately $59.6 million remains authorized in the company’s current share repurchase program.

Days sales outstanding for the fourth quarter was 68 days.

Conference Call and Webcast Information
The Sybase 2005 fourth quarter conference call and simultaneous Webcast is scheduled to begin at 7:30 a.m., Pacific Time/10:30 a.m. Eastern Time, on Thursday, January 26, 2006. To access the live Webcast, please visit www.fulldisclosure.com or Sybase’s Website at www.sybase.com at least 20 minutes prior to the call to download any necessary audio or plug-in software. A telephone replay will be available approximately two hours after the conference call ends and will be available until 10:00 p.m. Pacific Time on February 2, 2006. To access the replay, please dial (888) 203-1112 for domestic access and (719) 457-0820 for international callers; the access code for the telephone replay is #8548416. Additionally, the archived Webcast will be available for 90 days, through April 26, 2006.

About Sybase, Inc.
Sybase is the largest global enterprise software company exclusively focused on managing and mobilizing information from the data center to the point of action. Sybase provides open, cross-platform solutions that securely deliver information anytime, anywhere, enabling customers to create an information edge. The world’s most critical data in commerce, finance, government, healthcare, and defense runs on Sybase. For more information, visit the Sybase Website: http://www.sybase.com.
Forward-Looking Statements
Certain statements in this release concerning Sybase, Inc. and its prospects and future growth are forward-looking and involve a number of uncertainties and risks. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to, the performance of the global economy and growth in software industry sales; possible disruptive effects of organizational or personnel changes; the success of certain business combinations engaged in by the company or by competitors; political unrest or acts of war; market acceptance of the company’s products and services; customer and industry analyst perception of the company and its technology vision and future prospects; and other factors described in Sybase, Inc.’s reports filed with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2004 and its most recent quarterly report on Form 10-Q for the three-month period ended September 30, 2005.

Source: Sybase

Source: Wired News