exv99w1
Exhibit 99.1
For Financial Inquiries:
Sybase Investor Relations
Lynne Farris
(925) 236-8797
lynne.farris@sybase.com
Charlie Chen
(925) 236-6015
charles.chen@sybase.com
For Press Inquiries:
Sybase Public Relations
Crystal Lu
(925) 236-6431
crystal.lu@sybase.com
SYBASE 2007 THIRD QUARTER RESULTS EXCEED
FIRST CALL REVENUE AND EPS CONSENSUS
GAAP Operating Income Grows 39% Year over Year
Management Raises Full-Year EPS and Cash Flow Guidance
DUBLIN, Calif. — October 25, 2007 — Sybase, Inc. (NYSE: SY), a leading provider of enterprise
infrastructure and mobile software, today reported financial results for the third quarter ended
September 30, 2007.
Highlights:
w |
|
Total revenue increased 22% and license revenue up 12% year over year |
|
w |
|
Total database license revenues increased 18% year over year |
|
w |
|
Total iAnywhere revenues up 10% and license revenues up 16% year over year |
|
w |
|
Non-GAAP operating income up 40% year over year, non-GAAP operating margin of 22% |
|
w |
|
GAAP operating income up 39% year over year, GAAP operating margin of 17% |
|
w |
|
Non-GAAP EPS of $0.47; GAAP EPS of $0.37 |
|
w |
|
Management raises full-year non-GAAP EPS to range of $1.64 to $1.66 and GAAP EPS to range of $1.25 to $1.27 |
|
w |
|
Full-year cash flow guidance raised to approximately $210 million |
2007 Third Quarter Results
Total revenue increased 22% to $255.3 million from $209.1 million in the third quarter of 2006.
License revenue increased 12% to $85.1 million from $76.3 million in the third
quarter of 2006. Services revenues were up slightly to $135.8 million, and messaging revenues were
$34.3 million.
Non-GAAP operating income for the 2007 third quarter increased 40% year over year to $57.3 million,
representing a 22% operating margin.
Non-GAAP net income for the quarter was $42.8 million, or earnings per diluted share (EPS) of
$0.47. This compares with non-GAAP net income of $36.3 million, or EPS of $0.40 for the third
quarter of 2006.
Operating income calculated in accordance with generally accepted accounting principles (GAAP) for
the quarter increased 39% year over year to $44.6 million, representing a 17% operating margin.
GAAP net income was $34.1 million, or GAAP EPS of $0.37, for the quarter. This compares with GAAP
net income of $25.1 million, or GAAP EPS of $0.27, for the 2006 third quarter.
Non-GAAP amounts exclude the amortization of certain purchased intangibles, stock-based
compensation, and restructuring costs, and the tax effect of these and related items. Accompanying
this release is a reconciliation from GAAP to non-GAAP amounts for the 2007 third quarter.
“We are extremely pleased with our performance in the third quarter, with strong contributions from
each of our three business segments,” said John Chen, chairman, CEO, and president of Sybase.
“Solid growth across all of our key product lines — data management, mobile middleware, and
messaging services — demonstrates the growing market acceptance of our Unwired Enterprise platform.
“The strong revenue performance in each of our three business segments also demonstrates the
leverage in our business model and growing cross-selling synergies in our enterprise customer base.
This helped drive our sixth consecutive quarter of consolidated operating margin expansion. As a
result, we are raising our outlook for full-year EPS and operating cash flow for the second time
this year,” concluded Mr. Chen.
Balance Sheet and Other Data
At September 30, 2007, Sybase reported $717.3 million in cash and cash investments, including
restricted cash of $6.1 million. In the third quarter, the company generated $47.1 million in
cash flow from operations.
2
Sybase repurchased $32.8 million worth of its stock during the 2007 third quarter. As of September
30, 2007, $158.4 million remained authorized in the company’s current share repurchase program.
Days sales outstanding (DSO) for the 2007 third quarter was 75.
Management Changes
Upon filing the Form 10-Q for the 2007 third quarter, senior vice president and chief financial
officer Pieter Van der Vorst will become senior vice president and general manager of the EMEA
Region, reporting to Steve Capelli, president of Worldwide Field Operations. In this position, Mr.
Van der Vorst will be headquartered in London with responsibility for field and business operations
in the EMEA region. Mr. Van der Vorst has been with Sybase since 1991 and served as the company’s
chief financial officer for the past eight years.
Jeff Ross will be promoted to senior vice president and chief financial officer of Sybase from his
current role as vice president and corporate controller, a position he has held for three years at
Sybase. Mr. Ross joined Sybase in 1997 as group director of tax and corporate accounting, with
responsibility for the worldwide tax function and internal financial reporting. Previously, he
spent 10 years at Price Waterhouse in various positions of increasing responsibility. A Certified
Public Accountant, Mr. Ross earned a B.A. in business administration from University of California
at Berkeley.
“Pieter has been an invaluable partner of mine over the last eight years. Given his thorough
knowledge of our customer base, product lines, and business strategy, this new opportunity will
allow Pieter to further expand his contribution to Sybase,” stated Mr. Chen.
“We are very pleased to promote Jeff, a 10-year veteran of the Sybase finance organization. Jeff’s
promotion allows us to maintain operational continuity and demonstrates Sybase’s depth of
management,” concluded Mr. Chen.
Forward Guidance
For the fourth quarter ending December 31, 2007, management anticipates non-GAAP fully diluted EPS
in the range of $0.54 to $0.56 and total revenue in the range of $280.0 million to $290.0 million.
GAAP EPS for the fourth quarter is expected to range from $0.44 to $0.46.
For full-year 2007, management is raising guidance for fully diluted non-GAAP EPS to a range of
$1.64 to $1.66 from prior guidance of approximately $1.56. Management anticipates total revenue
for 2007 will range from $1.01 billion to $1.02 billion.
3
Management is raising guidance for GAAP EPS to a range of $1.25 to $1.27 from prior guidance of
approximately $1.19.
Management is raising guidance for full-year 2007 cash flow from operations to approximately $210
million, compared with prior guidance of $195 million to $205 million.
Accompanying this release is a reconciliation from projected GAAP to non-GAAP amounts for the 2007
fourth quarter and full year.
Conference Call and Webcast Information
The Sybase 2007 third 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, October 25, 2007. 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 November 1, 2007. 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 #6471670. Additionally, the archived Webcast will be available through January
24, 2008 at http://www.sybase.com/about_sybase/investorrelations.
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 at
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; market acceptance of the company’s products and services; customer and industry
analyst perception of the company and its technology vision and future prospects; the success of
certain business combinations engaged in by the company or by competitors; political unrest or acts
of war; possible disruptive effects of organizational or personnel changes; and other factors
described in Sybase, Inc.’s reports filed with the U.S. Securities and Exchange
4
Commission, including its annual report on Form 10-K for the year ended December 31, 2006 and Form
10-Q for the quarters ended March 31, 2007 and June 30, 2007.
Sybase, Information Anywhere, and Sybase 365 are trademarks of Sybase, Inc., or its subsidiaries.
All other names may be trademarks of the companies with which they are associated.
Note Regarding Non-GAAP Financial Measures
In addition to our GAAP results, Sybase discloses adjusted operating income, net income and net
income per share, referred to respectively as “non-GAAP operating income”, “non-GAAP net income”,
and “non-GAAP net income per diluted share”. These items, which are collectively referred to as
“Non-GAAP Measures”, exclude the impact of stock-based compensation, the amortization of
acquisition-related intangible assets, restructuring costs and related tax effects. From time to
time, subject to the review and approval of the audit committee of the Board of Directors, we may
make other adjustments for expenses and gains that we do not consider reflective of core operating
performance in a particular period and may modify the Non-GAAP Measures by excluding these expenses
and gains. There were no such expenses or gains during the periods presented.
We define our core operating performance to be the revenues recorded in a particular period and the
expenses incurred within that period which management has the capability of directly affecting in
order to drive operating income. Non-cash stock-based compensation, amortization of
acquisition-related intangible assets and restructuring charges are excluded from our core
operating performance because the decisions which gave rise to these expenses were not made to
drive revenue in a particular period, but rather were made for our long-term benefit over multiple
periods. While strategic decisions, such as the decisions to issue stock-based compensation, to
acquire a company or to restructure the organization, are made to further our long-term strategic
objectives and do impact our income statement under GAAP, these items affect multiple periods and
management is not able to change or affect these items within any particular period. As such,
supplementing GAAP disclosure with non-GAAP disclosure using the Non-GAAP Measures provides
management with an additional view of operational performance by excluding expenses that are not
directly related to performance in any particular period. Therefore, we exclude these impacts in
our planning, monitoring, evaluation and reporting of our underlying revenue-generating operations
for a particular period.
Prior to the adoption of Financial Accounting Standards Board Statement 123 Revised “Share-based
Payment” (“FAS 123R”) on January 1, 2006, our practice was to exclude stock-based compensation
internally to evaluate performance and we presented investors with certain Non-GAAP Measures. With
the adoption of FAS 123R, we continue to believe that Non-GAAP Measures can provide relevant
disclosure to investors as contemplated by Staff Accounting Bulletin 107 (“SAB 107”) and we have
presented Non-GAAP Measures that exclude stock-based compensation, amortization of
acquisition-related intangible assets, restructuring costs and the related tax effects. While
these items (other than restructuring) are recurring and affect GAAP net income, we do not use them
to assess our operational performance for any particular period because (a) these items affect
multiple periods and are unrelated to business performance in a particular period; (b) we are not
able to change these items in any particular period; and (c) these items do not contribute to the
operational performance of our business for any particular period.
5
We also use Non-GAAP Measures to operate the business because the excluded expenses are not under
the control of, and accordingly are not used in evaluating the performance of, operations personnel
within their respective areas of responsibility. In the case of stock-based compensation expense,
the award of stock options is governed by the stock committee of the Board of Directors and, in the
case of acquisition-related intangible assets; acquisitions arise from strategic decisions which
are not the responsibility of most levels of operational management. The restructuring charges,
like our stock-based compensation charges and amortization of acquisition-related intangible
assets, are excluded in management’s internal evaluations of our operating results and are not
considered for management compensation purposes.
In the case of stock-based compensation, our compensation strategy is to use stock-based
compensation to attract and retain key employees and executives. It is principally aimed at long
term employee retention, rather than to motivate or reward operational performance for any
particular period. Thus, stock-based compensation expense varies for reasons that are generally
unrelated to operational performance in any particular period. We use annual cash incentive payouts
for executives and other employees to motivate and reward the achievement of short-term operational
objectives.
We view amortization of acquisition-related intangible assets, such as the amortization of an
acquired company’s research and development efforts, customer lists and customer relationships, as
items arising from pre-acquisition activities. These are costs that are determined at the time of
an acquisition. While it is continually viewed for impairment, amortization of the cost is a static
expense, one that is typically not affected by operations during any particular period and does not
contribute to operational performance for any particular period.
The cost of restructure charges are excluded in our Non-GAAP Measures because they are
significantly different in magnitude and character from routine personnel and facility adjustments
that management makes when monitoring and conducting the Company’s core operations during any
particular period. We have not undertaken restructuring since 2004 and amounts included in cost of
restructure in 2006 and subsequently reflect lease termination costs from previously announced
restructuring efforts. Our previous restructuring activities and related expenses were not related
to operating performance for any particular period, and were not subject to change by management in
any particular period. Instead, the prior restructuring was intended to align our business model
and expense structure to our position in the market.
Our historical non-GAAP effective tax rates differ from our GAAP effective tax rates because of (i)
the exclusion of the amortization of acquisition-related intangible assets, stock-based
compensation expenses and restructuring costs described above, (ii) the exclusion of certain
acquired tax attributes, and (iii) the resulting impact on the realization of the Company’s other
tax assets. We exclude the impact of these discrete tax items from our non-GAAP income tax
provision or benefit because management believes that they are not indicative of our ongoing
business operations.
Because the Non-GAAP Measures are not calculated in accordance with GAAP, they are used by our
management as a supplement to, and not an alternative to, or superior to, financial measures
calculated in accordance with GAAP. There are a number of limitations on the Non-GAAP Measures,
including the following:
6
• |
|
These Non-GAAP Measures do not have standardized meanings and may not be comparable to
similar non-GAAP measures used or reported by other software or technology companies. |
|
• |
|
The Non-GAAP Measures do not reflect all costs associated with our operations determined
in accordance with GAAP. For example: |
Non-GAAP operating margin performance and non-GAAP net income do not include stock
compensation expense related to equity awards granted to our workforce. Our stock
incentive plans are important components of our employee incentive compensation
arrangements and are reflected as expenses in our GAAP results under FAS 123R. While
we include the dilutive impact of such equity awards in weighted average shares
outstanding, the expense associated with stock-based awards is excluded from our
non-GAAP measures.
Although amortization of acquisition-related intangible assets does not directly
impact our current cash position, such expense represents the declining value of the
technology or other intangible assets that we have acquired. These assets are
amortized over their respective expected economic lives or impaired, if appropriate.
The expense associated with this decline in value is excluded from our non-GAAP
measures and therefore non-GAAP measures do not include the costs of acquired
intangible assets that supplement our research and development.
Restructuring charges in 2006 and subsequently primarily represent lease termination
costs associated with restructuring activities that commenced in 2004 and before.
Most of the charges are cash expenditures, which are excluded from our Non-GAAP
Measures.
|
• |
|
Excluded expenses for stock-based compensation and amortization of
acquisition-related intangible assets will continue to recur and impact the Company’s
GAAP results. While restructuring costs are non-recurring activities, their occasional
occurrence will impact GAAP results. As such, the Non-GAAP Measures should not be
construed as an inference that the excluded items are unusual, infrequent or
non-recurring. |
Management compensates for theses limitations by relying on these Non-GAAP Measures only as a
supplement to the Company’s GAAP results.
7
SYBASE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
(In thousands, except share and per share data) |
|
2007 |
|
|
2006 |
|
|
|
(Unaudited) |
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
453,094 |
|
|
$ |
355,303 |
|
Short-term investments |
|
|
238,802 |
|
|
|
269,612 |
|
|
|
|
|
|
|
|
Total cash, cash
equivalents and
short-term cash
investments |
|
|
691,896 |
|
|
|
624,915 |
|
|
|
|
|
|
|
|
|
|
Restricted cash |
|
|
6,109 |
|
|
|
6,014 |
|
Accounts receivable, net |
|
|
211,398 |
|
|
|
218,016 |
|
Deferred income taxes |
|
|
6,283 |
|
|
|
6,224 |
|
Other current assets |
|
|
29,151 |
|
|
|
16,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
944,837 |
|
|
|
871,561 |
|
|
|
|
|
|
|
|
|
|
Long-term cash investments |
|
|
19,253 |
|
|
|
12,781 |
|
Property, equipment and improvements, net |
|
|
64,283 |
|
|
|
66,458 |
|
Deferred income taxes |
|
|
39,502 |
|
|
|
36,069 |
|
Capitalized software, net |
|
|
74,273 |
|
|
|
71,179 |
|
Goodwill, net |
|
|
544,401 |
|
|
|
540,303 |
|
Other purchased intangibles, net |
|
|
136,547 |
|
|
|
149,648 |
|
Other assets |
|
|
36,172 |
|
|
|
39,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,859,268 |
|
|
$ |
1,787,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
30,079 |
|
|
$ |
23,439 |
|
Accrued compensation and related expenses |
|
|
59,462 |
|
|
|
59,748 |
|
Accrued income taxes |
|
|
19,543 |
|
|
|
31,364 |
|
Other accrued liabilities |
|
|
103,415 |
|
|
|
108,436 |
|
Deferred revenue |
|
|
194,427 |
|
|
|
193,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
406,926 |
|
|
|
416,418 |
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
44,560 |
|
|
|
44,428 |
|
Deferred income taxes |
|
|
14,368 |
|
|
|
14,448 |
|
Long-term tax liability |
|
|
25,796 |
|
|
|
— |
|
Long-term deferred revenue |
|
|
4,826 |
|
|
|
3,965 |
|
Minority interest |
|
|
5,179 |
|
|
|
5,160 |
|
Convertible subordinated notes |
|
|
460,000 |
|
|
|
460,000 |
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
897,613 |
|
|
|
843,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
1,859,268 |
|
|
$ |
1,787,550 |
|
|
|
|
|
|
|
|
8
SYBASE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
(In thousands, except per share data) |
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License fees |
|
$ |
85,141 |
|
|
$ |
76,338 |
|
|
$ |
231,941 |
|
|
$ |
226,367 |
|
Services |
|
|
135,838 |
|
|
|
132,794 |
|
|
|
400,719 |
|
|
|
393,332 |
|
Messaging |
|
|
34,287 |
|
|
|
— |
|
|
|
97,666 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
255,266 |
|
|
|
209,132 |
|
|
|
730,326 |
|
|
|
619,699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of license fees |
|
|
12,667 |
|
|
|
12,160 |
|
|
|
38,503 |
|
|
|
36,882 |
|
Cost of services |
|
|
38,684 |
|
|
|
37,681 |
|
|
|
116,965 |
|
|
|
114,371 |
|
Cost of messaging |
|
|
21,428 |
|
|
|
— |
|
|
|
59,223 |
|
|
|
— |
|
Sales and marketing |
|
|
64,415 |
|
|
|
62,019 |
|
|
|
193,906 |
|
|
|
191,207 |
|
Product development and engineering |
|
|
38,739 |
|
|
|
37,327 |
|
|
|
114,412 |
|
|
|
111,867 |
|
General and administrative |
|
|
31,231 |
|
|
|
26,103 |
|
|
|
95,407 |
|
|
|
77,037 |
|
Amortization of other purchased
intangibles |
|
|
3,445 |
|
|
|
1,573 |
|
|
|
10,291 |
|
|
|
4,671 |
|
Cost (Reversal) of restructure |
|
|
17 |
|
|
|
39 |
|
|
|
(30 |
) |
|
|
139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total costs and expenses |
|
|
210,626 |
|
|
|
176,902 |
|
|
|
628,677 |
|
|
|
536,174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
44,640 |
|
|
|
32,230 |
|
|
|
101,649 |
|
|
|
83,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and expense and other, net |
|
|
5,710 |
|
|
|
7,936 |
|
|
|
15,857 |
|
|
|
21,211 |
|
Minority interest |
|
|
— |
|
|
|
— |
|
|
|
(20 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
50,350 |
|
|
|
40,166 |
|
|
|
117,486 |
|
|
|
104,736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
16,220 |
|
|
|
15,081 |
|
|
|
42,180 |
|
|
|
36,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
34,130 |
|
|
$ |
25,085 |
|
|
$ |
75,306 |
|
|
$ |
68,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share |
|
$ |
0.38 |
|
|
$ |
0.28 |
|
|
$ |
0.83 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing basic net income per share |
|
|
89,655 |
|
|
|
89,056 |
|
|
|
90,565 |
|
|
|
89,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share |
|
$ |
0.37 |
|
|
$ |
0.27 |
|
|
$ |
0.81 |
|
|
$ |
0.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted net income per share |
|
|
91,714 |
|
|
|
91,498 |
|
|
|
92,749 |
|
|
|
91,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9
NON-GAAP RESULTS RECONCILED TO GAAP RESULTS
The following tables reflect selected Sybase non-GAAP results reconciled
to GAAP results (in 000s except percentage and per share amounts) :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2007 |
|
2006 |
|
2007 |
|
2006 |
|
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income |
|
|
44,640 |
|
|
|
32,230 |
|
|
|
101,649 |
|
|
|
83,525 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
|
6,859 |
|
|
|
3,968 |
|
|
|
20,363 |
|
|
|
11,816 |
|
Stock-based compensation expense |
|
|
5,788 |
|
|
|
4,694 |
|
|
|
17,021 |
|
|
|
15,681 |
|
Cost (Reversal) of restructure |
|
|
17 |
|
|
|
39 |
|
|
|
(30 |
) |
|
|
139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income |
|
$ |
57,304 |
|
|
$ |
40,931 |
|
|
$ |
139,003 |
|
|
$ |
111,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income |
|
|
34,130 |
|
|
|
25,085 |
|
|
|
75,306 |
|
|
|
68,670 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
|
6,859 |
|
|
|
3,968 |
|
|
|
20,363 |
|
|
|
11,816 |
|
Stock-based compensation expense |
|
|
5,788 |
|
|
|
4,694 |
|
|
|
17,021 |
|
|
|
15,681 |
|
Cost (Reversal) of restructure |
|
|
17 |
|
|
|
39 |
|
|
|
(30 |
) |
|
|
139 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incremental income taxes associated with certain Non-GAAP items |
|
|
(3,984 |
) |
|
|
2,534 |
|
|
|
(10,714 |
) |
|
|
(4,455 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
$ |
42,810 |
|
|
$ |
36,320 |
|
|
$ |
101,946 |
|
|
$ |
91,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Diluted Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per diluted share |
|
$ |
0.37 |
|
|
$ |
0.27 |
|
|
$ |
0.81 |
|
|
$ |
0.75 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
|
0.07 |
|
|
|
0.04 |
|
|
|
0.22 |
|
|
|
0.13 |
|
Stock-based compensation expense |
|
|
0.06 |
|
|
|
0.05 |
|
|
|
0.18 |
|
|
|
0.17 |
|
Cost of restructure |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.00 |
) |
|
|
0.00 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incremental income taxes associated with certain Non-GAAP items |
|
|
(0.04 |
) |
|
|
0.03 |
|
|
|
(0.12 |
) |
|
|
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per diluted share |
|
$ |
0.47 |
|
|
$ |
0.40 |
|
|
$ |
1.10 |
|
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted net income per share |
|
|
91,714 |
|
|
|
91,498 |
|
|
|
92,749 |
|
|
|
91,636 |
|
CLASSIFICATION OF STOCK-BASED COMPENSATION EXPENSE
The following table shows the classification of stock-based compensation expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2007 |
|
2006 |
|
2007 |
|
2006 |
|
|
|
|
($000 |
) |
|
|
|
|
|
|
($000 |
) |
|
|
|
|
Cost of services |
|
|
400 |
|
|
|
(141 |
) |
|
|
1,115 |
|
|
|
1,220 |
|
Cost of messaging |
|
|
121 |
|
|
|
0 |
|
|
|
431 |
|
|
|
0 |
|
Sales and marketing |
|
|
1,346 |
|
|
|
1,111 |
|
|
|
3,818 |
|
|
|
3,158 |
|
Product development and engineering |
|
|
763 |
|
|
|
693 |
|
|
|
2,105 |
|
|
|
1,965 |
|
General and administrative |
|
|
3,158 |
|
|
|
3,031 |
|
|
|
9,552 |
|
|
|
9,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
5,788 |
|
|
$ |
4,694 |
|
|
$ |
17,021 |
|
|
$ |
15,681 |
|
CLASSIFICATION OF AMORTIZATION OF PURCHASED INTANGIBLES
The following table shows the classification of amortization of purchased intangibles expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
2007 |
|
2006 |
|
2007 |
|
2006 |
|
|
|
|
($000 |
) |
|
|
|
|
|
|
($000 |
) |
|
|
|
|
Cost of license fees |
|
|
2,477 |
|
|
|
2,395 |
|
|
|
7,288 |
|
|
|
7,145 |
|
Cost of messaging |
|
|
937 |
|
|
|
0 |
|
|
|
2,784 |
|
|
|
0 |
|
Amortization of other purchased intangibles |
|
|
3,445 |
|
|
|
1,573 |
|
|
|
10,291 |
|
|
|
4,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
6,859 |
|
|
$ |
3,968 |
|
|
$ |
20,363 |
|
|
$ |
11,816 |
|
10
SYBASE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
(Dollars in thousands) |
|
2007 |
|
|
2006 |
|
Cash and cash equivalents, beginning of year |
|
$ |
355,303 |
|
|
$ |
398,741 |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
|
75,306 |
|
|
|
68,670 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
64,802 |
|
|
|
52,258 |
|
Minority interest in income of subsidiaries |
|
|
20 |
|
|
|
— |
|
Loss on disposal of assets |
|
|
20 |
|
|
|
829 |
|
Deferred income taxes |
|
|
(3,541 |
) |
|
|
(11,377 |
) |
Stock-based compensation – restricted stock |
|
|
6,554 |
|
|
|
5,833 |
|
Stock-based compensation – all other |
|
|
10,467 |
|
|
|
9,849 |
|
Excess tax benefit from stock-based compensation plans |
|
|
(3,171 |
) |
|
|
— |
|
Amortization of note issuance costs |
|
|
1,477 |
|
|
|
1,477 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
11,956 |
|
|
|
38,481 |
|
Other current assets |
|
|
(3,846 |
) |
|
|
(2,055 |
) |
Other assets — operating |
|
|
2,635 |
|
|
|
(2,600 |
) |
Accounts payable |
|
|
6,573 |
|
|
|
3,806 |
|
Accrued compensation and related expenses |
|
|
(301 |
) |
|
|
(1,203 |
) |
Accrued income taxes |
|
|
13,313 |
|
|
|
20,219 |
|
Other accrued liabilities |
|
|
(13,027 |
) |
|
|
(19,043 |
) |
Deferred revenues |
|
|
1,857 |
|
|
|
(3,125 |
) |
Other liabilities |
|
|
(541 |
) |
|
|
1,863 |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
170,553 |
|
|
|
163,882 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Increase in restricted cash |
|
|
(95 |
) |
|
|
(193 |
) |
Purchases of available-for-sale cash investments |
|
|
(231,304 |
) |
|
|
(364,397 |
) |
Maturities of available-for-sale cash investments |
|
|
136,462 |
|
|
|
205,807 |
|
Sales of available-for-sale cash investments |
|
|
119,735 |
|
|
|
237,255 |
|
Business combinations, net of cash acquired |
|
|
(6,502 |
) |
|
|
(4,334 |
) |
Purchases of property, equipment and improvements |
|
|
(16,533 |
) |
|
|
(13,162 |
) |
Proceeds from sale of property, equipment, and improvements |
|
|
44 |
|
|
|
4 |
|
Capitalized software development costs |
|
|
(27,474 |
) |
|
|
(29,171 |
) |
Increase in other assets — investing |
|
|
(184 |
) |
|
|
(7 |
) |
|
|
|
|
|
|
|
Net cash provided by (used for) investing activities |
|
|
(25,851 |
) |
|
|
31,802 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Repayments of long-term obligations |
|
|
(136 |
) |
|
|
(45 |
) |
Payments on capital lease |
|
|
(1,276 |
) |
|
|
(243 |
) |
Net proceeds from the issuance of common stock and reissuance of treasury stock |
|
|
23,096 |
|
|
|
32,675 |
|
Purchases of treasury stock |
|
|
(91,421 |
) |
|
|
(45,280 |
) |
Excess tax benefit from stock-based compensation plans |
|
|
3,171 |
|
|
|
— |
|
|
|
|
|
|
|
|
Net cash used for financing activities |
|
|
(66,566 |
) |
|
|
(12,893 |
) |
Effect of exchange rate changes on cash |
|
|
19,655 |
|
|
|
9,085 |
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
97,791 |
|
|
|
191,876 |
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period |
|
$ |
453,094 |
|
|
$ |
590,617 |
|
|
|
|
|
|
|
|
11
SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2007
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure |
|
|
iAnywhere |
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
(In thousands, except per share data) |
|
Platform Group |
|
|
Solutions |
|
|
Sybase 365 |
|
|
Eliminations |
|
|
Total |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure |
|
$ |
58,096 |
|
|
$ |
106 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
58,202 |
|
Mobile and Embedded |
|
|
10,451 |
|
|
|
16,488 |
|
|
|
— |
|
|
|
— |
|
|
|
26,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal license fees |
|
|
68,547 |
|
|
|
16,594 |
|
|
|
— |
|
|
|
— |
|
|
|
85,141 |
|
Intersegment license revenues |
|
|
44 |
|
|
|
8,709 |
|
|
|
— |
|
|
|
(8,753 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total license fees |
|
|
68,591 |
|
|
|
25,303 |
|
|
|
— |
|
|
|
(8,753 |
) |
|
|
85,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct service revenue |
|
|
123,985 |
|
|
|
11,853 |
|
|
|
— |
|
|
|
— |
|
|
|
135,838 |
|
Intersegment service revenues |
|
|
44 |
|
|
|
7,222 |
|
|
|
— |
|
|
|
(7,266 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total services |
|
|
124,029 |
|
|
|
19,075 |
|
|
|
— |
|
|
|
(7,266 |
) |
|
|
135,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Messaging |
|
|
— |
|
|
|
— |
|
|
|
34,287 |
|
|
|
— |
|
|
|
34,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
192,620 |
|
|
|
44,378 |
|
|
|
34,287 |
|
|
|
(16,019 |
) |
|
|
255,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allocated costs and expenses before cost of restructure and
amortization of other purchased intangibles and purchased technology |
|
|
148,602 |
|
|
|
35,058 |
|
|
|
30,321 |
|
|
|
(16,019 |
) |
|
|
197,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before cost of restructure and amortization
of other purchased intangibles and purchased technology |
|
|
44,018 |
|
|
|
9,320 |
|
|
|
3,966 |
|
|
|
— |
|
|
|
57,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before cost of restructure and amortization
of other purchased intangibles and purchased technology
as a percentage of total revenue |
|
|
23 |
% |
|
|
21 |
% |
|
|
12 |
% |
|
|
0 |
% |
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of restructure - 2007 Activity |
|
|
17 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17 |
|
Amortization of other purchased intangibles |
|
|
527 |
|
|
|
1,046 |
|
|
|
1,872 |
|
|
|
— |
|
|
|
3,445 |
|
Amortization of purchased technology |
|
|
403 |
|
|
|
2,074 |
|
|
|
937 |
|
|
|
— |
|
|
|
3,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before unallocated costs |
|
$ |
43,071 |
|
|
$ |
6,200 |
|
|
$ |
1,157 |
|
|
$ |
— |
|
|
$ |
50,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other unallocated costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income after unallocated costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and expense and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
34,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing basic net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
91,714 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure |
|
|
iAnywhere |
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
(In thousands, except per share data) |
|
Platform Group |
|
|
Solutions |
|
|
Sybase 365 |
|
|
Eliminations |
|
|
Total |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure |
|
$ |
158,983 |
|
|
$ |
473 |
|
|
$ |
17 |
|
|
$ |
— |
|
|
$ |
159,473 |
|
Mobile and Embedded |
|
|
24,879 |
|
|
|
47,589 |
|
|
|
— |
|
|
|
— |
|
|
|
72,468 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal license fees |
|
|
183,862 |
|
|
|
48,062 |
|
|
|
17 |
|
|
|
— |
|
|
|
231,941 |
|
Intersegment license revenues |
|
|
283 |
|
|
|
20,740 |
|
|
|
— |
|
|
|
(21,023 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total license fees |
|
|
184,145 |
|
|
|
68,802 |
|
|
|
17 |
|
|
|
(21,023 |
) |
|
|
231,941 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct service revenue |
|
|
365,814 |
|
|
|
34,905 |
|
|
|
— |
|
|
|
— |
|
|
|
400,719 |
|
Intersegment service revenues |
|
|
218 |
|
|
|
21,280 |
|
|
|
— |
|
|
|
(21,498 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total services |
|
|
366,032 |
|
|
|
56,185 |
|
|
|
— |
|
|
|
(21,498 |
) |
|
|
400,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Messaging |
|
|
— |
|
|
|
— |
|
|
|
97,666 |
|
|
|
— |
|
|
|
97,666 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
550,177 |
|
|
|
124,987 |
|
|
|
97,683 |
|
|
|
(42,521 |
) |
|
|
730,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allocated costs and expenses before cost of restructure and
amortization of other purchased intangibles and purchased technology |
|
|
439,265 |
|
|
|
103,570 |
|
|
|
90,016 |
|
|
|
(42,521 |
) |
|
|
590,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before cost of restructure and amortization
of other purchased intangibles and purchased technology |
|
|
110,912 |
|
|
|
21,417 |
|
|
|
7,667 |
|
|
|
— |
|
|
|
139,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before cost of restructure and amortization
of other purchased intangibles and purchased technology
as a percentage of total revenue |
|
|
20 |
% |
|
|
17 |
% |
|
|
8 |
% |
|
|
0 |
% |
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of restructure - 2007 Activity |
|
|
(30 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(30 |
) |
Amortization of other purchased intangibles |
|
|
1,581 |
|
|
|
3,138 |
|
|
|
5,572 |
|
|
|
— |
|
|
|
10,291 |
|
Amortization of purchased technology |
|
|
1,208 |
|
|
|
6,080 |
|
|
|
2,784 |
|
|
|
— |
|
|
|
10,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) before unallocated costs |
|
$ |
108,153 |
|
|
$ |
12,199 |
|
|
$ |
(689 |
) |
|
$ |
— |
|
|
$ |
119,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other unallocated costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income after unallocated costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and expense and other, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15,857 |
|
Minority interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
117,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
75,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing basic net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing diluted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
NON-GAAP RESULTS RECONCILED TO GAAP RESULTS — SEGMENTS
The following table reflects non-GAAP operating income before unallocated costs
reconciled to GAAP results for each Sybase segment ( in 000s except percentage
and per share amounts ) :
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, 2007 |
|
September 30, 2007 |
|
|
|
Infrastructure |
|
iAnywhere |
|
|
|
|
|
Infrastructure |
|
iAnywhere |
|
|
|
|
Platform Group |
|
Solutions |
|
Sybase 365 |
|
Platform Group |
|
Solutions |
|
Sybase 365 |
|
Operating Income Before Unallocated Costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income (loss) before unallocated costs |
|
|
43,071 |
|
|
|
6,200 |
|
|
|
1,157 |
|
|
|
108,153 |
|
|
|
12,199 |
|
|
|
(689 |
) |
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets |
|
|
930 |
|
|
|
3,120 |
|
|
|
2,809 |
|
|
|
2,789 |
|
|
|
9,218 |
|
|
|
8,356 |
|
Cost (Reversal) of restructure |
|
|
17 |
|
|
|
0 |
|
|
|
0 |
|
|
|
(30 |
) |
|
|
0 |
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income before unallocated costs |
|
$ |
44,018 |
|
|
$ |
9,320 |
|
|
$ |
3,966 |
|
|
$ |
110,912 |
|
|
$ |
21,417 |
|
|
$ |
7,667 |
|
|
14
SYBASE, INC.
Reconciliation of GAAP-based EPS to Non-GAAP EPS
for the three months ended December 31, 2007
(unaudited)
|
|
|
|
|
|
|
|
|
GAAP — based EPS |
|
$ |
0.44 |
|
|
$ |
0.46 |
|
|
Amortization of purchased intangibles |
|
|
0.07 |
|
|
|
0.07 |
|
Amortization of stock compensation expense |
|
|
0.06 |
|
|
|
0.06 |
|
Income tax effect of above adjustments |
|
|
(0.05 |
) |
|
|
(0.05 |
) |
Income tax effect due to differences
between the GAAP and non-GAAP effective
tax rate |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
Non-GAAP EPS |
|
$ |
0.54 |
|
|
$ |
0.56 |
|
|
|
|
|
|
|
|
Please see “Note Regarding Non-GAAP Financial Measures” for important information
regarding Non-GAAP Financial Measures.
15
SYBASE, INC.
Reconciliation of GAAP-based EPS to Non-GAAP EPS
for the twelve months ended December 31, 2007
(unaudited)
|
|
|
|
|
|
|
|
|
GAAP — based EPS |
|
$ |
1.25 |
|
|
$ |
1.27 |
|
|
Amortization of purchased intangibles |
|
|
0.29 |
|
|
|
0.29 |
|
Amortization of stock compensation expense |
|
|
0.25 |
|
|
|
0.25 |
|
Income tax effect of above adjustments |
|
|
(0.20 |
) |
|
|
(0.20 |
) |
Income tax effect due to differences
between the GAAP and non-GAAP effective
tax rate
|
|
|
0.05 |
|
|
|
0.05 |
|
|
|
|
|
|
|
|
|
Non-GAAP EPS |
|
$ |
1.64 |
|
|
$ |
1.66 |
|
|
|
|
|
|
|
|
Please see “Note Regarding Non-GAAP Financial Measures” for important information
regarding Non-GAAP Financial Measures.
16