exv99w1

Exhibit 99.1

For Financial Inquiries, Contact:
Lynne Farris
Sybase Investor Relations
lfarris@sybase.com
(925) 236-8797

For Press Inquiries, Contact:
Heather Peterson
Sybase Public Relations
heatherp@sybase.com
(925) 236-6517

SYBASE REPORTS 2005 FOURTH QUARTER
AND YEAR-END RESULTS,
EXCEEDING FIRST CALL EPS CONSENSUS ESTIMATES

w Annual License Revenues Increase 6% Year-Over Year

w Annual Mobile & Wireless Business Grows 23% Year-Over-Year

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 reconciliation 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.

Sybase Fourth Quarter 2005 Selected Highlights

Sybase announcements during the fourth quarter of 2005 showcased the company’s leadership in the mobile marketplace with RSS support for AvantGo® and iAnywhere® being named number one in worldwide mobile device management enterprise software market for the fourth consecutive year. Additionally, invitations to keynote at high-profile international business and IT events, including the BusinessWeek CEO Forum and the Lehman Brothers 2005 Global Technology Conference, underscored Sybase’s industry leadership.

In Q4 2005, Sybase:

Mobile Enterprise Computing:

•		iAnywhere launched the beta release of AvantGo for RSS, which adds support of RSS content to the AvantGo service. http://www.sybase.com/detail?id=1037972

•		Announced the completion of the acquisition of Extended Systems®, a pioneer in mobile application software for the enterprise. http://www.sybase.com/detail?id=1038178

•		iAnywhere launched Advantage Database Server™ 8.0, which features new data architect, replication, online backup, and SQL scripting. http://www.sybase.com/detail?id=1038300

•		iAnywhere launched an update to XTNDConnect® PC . http://www.sybase.com/detail?id=1038717

Database Initiatives:

•

Sybase, Inc. announced certification of its leading analytics server, Sybase IQ, for integration with SAP NetWeaver Business Intelligence. http://www.sybase.com/detail?id=1038355

Developer Initiatives:

•

Announced continued and expanded commitment and support for the Microsoft .NET environment.
http://www.sybase.com/detail?id=1038292

Customer Deployments:

•

Announced Sybase Unwired Accelerator application mobilization tool, iAnywhere Afaria®, and the AvantGo Geocaching.com mobile Web channel are available for the new HP iPAQ hw6500 series Mobile Messenger.
http://www.sybase.com/detail?id=1037973

•

Financial Fusion(R), Inc. announced that Financial Partners, Inc. is reaping the benefits of enhanced capabilities and increased revenue with the implementation of Financial Fusion’s Corporate Banking Solution. http://www.sybase.com/detail?id=1038363

Partnerships:

•		iAnywhere joined forces with UK security firm BeCrypt to offer Afaria Security Manager for Windows, adding to Afaria’s mobile security capabilities. http://www.sybase.com/detail?id=1037974

•		Sybase, Inc. and Xi’an Hi-Tech Industrial Development Zone signed a Strategic Partner Agreement under which Sybase products and technologies will play a key role in converting the entire Xi’an zone into a digitalized area. http://www.sybase.com/detail?id=1038183

Industry Accolades:

•		Sybase PocketBuilder™ and iAnywhere products SQL Anywhere Studio(R), M- Business Anywhere™, Pylon Anywhere™, Afaria, and AvantGo were recognized with the 2005 MobileVillage Mobile Star Award. http://www.sybase.com/detail?id=1038164

•		iAnywhere customer, A. van Delft International B.V., was the recipient of the 2005 Mobile Impact™ Award in the Sales Force Enablement category. http://www.sybase.com/detail?id=1038501

•		John S. Chen was sworn into the President’s Export Council, the U.S. government’s principal advisory body on international trade . http://www.sybase.com/detail?id=1038617

•		Bob Laurence joined Sybase to lead the company’s Public Sector business. http://www.sybase.com/detail?id=1038617

•		Sybase iAnywhere was named number one in the worldwide mobile device management enterprise software market for the fourth consecutive year by Frost & Sullivan. http://www.sybase.com/detail?id=1038819

Events:

•

Showcased Sybase business continuity solutions for mission-critical applications at Securities Industry Association’s 2005 annual Business Continuity Planning Conference at the New York Marriott.
http://www.sybase.com/detail?id=1038165

•		Sybase presented at FTN Midwest Securities Corporation 2005 Business Services and Technology. http://www.sybase.com/detail?id=1038217

•		Terry Stepien presented at Scotia Capital’s “Mobilizing the Enterprise” conference in Canada. http://www.sybase.com/detail?id=1038322

•		John Chen spoke at BusinessWeek’s event, The Ninth Annual CEO Forum, “Going Global: Reinventing for Today, Creating for Tomorrow,” at the China World Hotel, in Beijing. http://www.sybase.com/detail?id=1038354

•		John Chen served as a panelist at the APEC CEO SUMMIT 2005 on the topic, “Entrepreneurship and Prosperity: Building a Successful Partnership in the Asia Pacific Region,” at The Busan Lotte Hotel in Busan, Korea. http://www.sybase.com/detail?id=1038367

•		Marty Beard addressed the Gartner ITXPO in Tokyo, Japan on the topic, “Transforming Business through Real-Time Business Intelligence: Case Studies for Success.” http://www.sybase.com/detail?id=1038550

•		Marty Beard presented “The Enterprise. Unwired.” at the Lehman Brothers 2005 Global Technology Conference in San Francisco, California. http://www.sybase.com/detail?id=1038611

•		Neil McGovern presented at the Gartner Application Integration and Web Services Summit in Orlando, Florida. http://www.sybase.com/detail?id=1038619

Sybase, Advantage Database Server, Afaria, Answers Anywhere, AvantGo, Extended Systems, Financial Fusion, iAnywhere, PocketBuilder, SQL Anywhere Studio, M-Business Anywhere, Pylon Anywhere and XTNDConnect, are trademarks of Sybase, Inc. or its subsidiaries. All other names may be trademarks of the companies with which they are associated.

SYBASE, INC.
RECONCILIATION TO PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(UNAUDITED)


	Three Months Ended December 31, 2005											Three Months Ended December 31, 2004
				Pro forma									Pro forma
(In thousands, except per share data)	GAAP			Adjustments (2)				Pro forma			GAAP		Adjustments (2)				Pro forma

Revenues:
License fees	$	91,333			—			$	91,333		$	87,160		—			$	87,160
Services		131,715			—				131,715			131,468		—				131,468

Total revenues		223,048			—				223,048			218,628		—				218,628

Costs and expenses:
Cost of license fees		14,583			(2,753	)	a		11,830			16,091		(4,710	)	a		11,381
Cost of services		38,077			(88	)	b		37,989			39,113		(45	)	b		39,068
Sales and marketing		65,410			(95	)	b		65,315			63,090		(68	)	b		63,022
Product development and engineering		36,247			(12	)	b		36,235			31,037		(24	)	b		31,013
General and administrative		22,923			(1,443	)	b		21,480			23,505		(990	)	b		22,515
Amortization of other purchased intangibles		1,608			(1,608	)	a		—			1,677		(1,677	)	a		—
Reversal of purchase accounting accrual		—			—		c		—			—		—		c		—
Cost of restructure		813			(813	)	d		—			9,666		(9,666	)	d		—


Total costs and expenses		179,661			(6,812	)			172,849			184,179		(17,180	)			166,999

Operating income		43,387			6,812				50,199			34,449		17,180				51,629

Interest income and expense and other, net		4,204			—				4,204			3,079		—				3,079
Minority interest		(49	)		—				(49	)		—		—				—


Income before income taxes		47,542			6,812				54,354			37,528		17,180				54,708

Provision for income taxes		19,147			(6,799	)	e		12,348			13,417		2,742		e		16,159


Net income	$	28,395		$	13,611			$	42,006		$	24,111	$	14,438			$	38,549


Basic net income per share	$	0.32		$	0.15			$	0.47		$	0.26	$	0.15			$	0.41

Shares used in computing basic net income per share		90,020			90,020				90,020			94,280		94,280				94,280


Diluted net income per share	$	0.31		$	0.14			$	0.45		$	0.25	$	0.15			$	0.40

Shares used in computing diluted net income per share		93,021			93,021				93,021			96,466		96,466				96,466


(1)		Use of Pro Forma Financial Information

		To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), Sybase uses pro forma measures of operating results, net income and earnings per share, which are adjusted from GAAP-based results to exclude certain costs and expenses. These pro forma adjustments are provided to enhance an overall understanding of our current financial performance and our prospects for the future, and are one of the primary indicators management uses for planning and forecasting future periods. We have excluded such items, including purchase accounting adjustments in connection with acquisitions, and the cost of restructuring because we do not believe they are indicative of our core business. Even though such items have recurred in the past and may recur in future periods, they are driven by events (such as acquisitions and restructurings) that occur sporadically and are not directly related to our ongoing core business operations. Pro forma financial information is never intended to be considered in isolation from, or as a substitute for, financial results prepared in accordance with GAAP.

(2)		Proforma adjustments

		Proforma adjustments include the following: (a) amortization of purchased intangibles; (b) amortization of unearned stock compensation; (c) reversal of purchase accounting accrual; (d) cost of restructuring charges; (e) income tax effect of proforma adjustments.

SYBASE, INC.
RECONCILIATION TO PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (1)
(UNAUDITED)


	Twelve Months Ended December 31, 2005										Twelve Months Ended December 31, 2004
				Pro forma										Pro forma
(In thousands, except per share data)	GAAP			Adjustments (2)				Pro forma			GAAP			Adjustments (2)				Pro forma
Revenues:
License fees	$	291,695			—			$	291,695		$	275,872			—			$	275,872
Services		527,000			—				527,000			512,664			—				512,664

Total revenues		818,695			—				818,695			788,536			—				788,536

Costs and expenses:
Cost of license fees		51,556			(11,850	)	a		39,706			60,795			(17,818	)	a		42,977
Cost of services		156,325			(380	)	b		155,945			162,016			(168	)	b		161,848
Sales and marketing		250,003			(302	)	b		249,701			242,778			(347	)	b		242,431
Product development and engineering		139,011			(38	)	b		138,973			119,959			(82	)	b		119,877
General and administrative		92,106			(6,586	)	b		85,520			91,117			(4,002	)	b		87,115
Amortization of other purchased intangibles		6,639			(6,639	)	a		—			5,139			(5,139	)	a		—
Reversal of purchase accounting accrual		—			—		c		—			(2,677	)		2,677		c		—
Cost of restructure		1,115			(1,115	)	d		—			20,017			(20,017	)	d		—


Total costs and expenses		696,755			(26,910	)			669,845			699,144			(44,896	)			654,248


Operating income		121,940			26,910				148,850			89,392			44,896				134,288

Interest income and expense and other, net		14,824			—				14,824			11,574			—				11,574
Minority interest		(49	)		—				(49	)		—			—				—


Income before income taxes		136,715			26,910				163,625			100,966			44,896				145,862

Provision for income taxes		51,132			(5,317	)	e		45,815			33,016			11,268		e		44,284


Net income	$	85,583		$	32,227			$	117,810		$	67,950		$	33,628			$	101,578


Basic net income per share	$	0.95		$	0.35			$	1.30		$	0.71		$	0.35			$	1.06

Shares used in computing basic net income per share		90,307			90,307				90,307			95,550			95,550				95,550


Diluted net income per share	$	0.92		$	0.34			$	1.26		$	0.69		$	0.35			$	1.04

Shares used in computing diluted net income per share		93,257			93,257				93,257			98,001			98,001				98,001


(1)		Use of Pro Forma Financial Information

		To supplement our consolidated financial statements presented in accordance with generally accepted accounting principles (GAAP), Sybase uses pro forma measures of operating results, net income and earnings per share, which are adjusted from GAAP-based results to exclude certain costs and expenses. These pro forma adjustments are provided to enhance an overall understanding of our current financial performance and our prospects for the future, and are one of the primary indicators management uses for planning and forecasting future periods. We have excluded such items, including purchase accounting adjustments in connection with acquisitions, and the cost of restructuring because we do not believe they are indicative of our core business. Even though such items have recurred in the past and may recur in future periods, they are driven by events (such as acquisitions and restructurings) that occur sporadically and are not directly related to our ongoing core business operations. Pro forma financial information is never intended to be considered in isolation from, or as a substitute for, financial results prepared in accordance with GAAP.

(2)		Proforma adjustments

		Proforma adjustments include the following: (a) amortization of purchased intangibles; (b) amortization of unearned stock compensation; (c) reversal of purchase accounting accrual; (d) cost of restructuring charges; (e) income tax effect of proforma adjustments.

SYBASE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS


	December 31,			December 31,
	2005			2004
(In thousands, except share and per share data)	(Unaudited)
Current assets:
Cash and cash equivalents	$	398,741		$	321,417
Short-term investments		342,247			158,217

Total cash, cash equivalents and short-term cash investments		740,988			479,634

Restricted cash		2,773			5,356
Accounts receivable, net		167,790			157,897
Deferred income taxes		5,523			11,205
Other current assets		16,876			14,790


Total current assets		933,950			668,882

Long-term cash investments		118,948			33,998
Restricted long-term cash investments		2,600			2,600
Property, equipment and improvements, net		59,178			64,371
Deferred income taxes		24,879			39,440
Capitalized software, net		65,911			61,771
Goodwill, net		238,864			214,110
Other purchased intangibles, net		87,562			67,208
Other assets		38,722			31,142


Total assets	$	1,570,614		$	1,183,522


Current liabilities:
Accounts payable	$	10,353		$	11,962
Accrued compensation and related expenses		51,983			43,632
Accrued income taxes		31,398			32,595
Other accrued liabilities		78,040			81,715
Deferred revenue		188,929			208,741


Total current liabilities		360,703			378,645

Other liabilities		40,339			33,121
Long-term deferred revenue		5,663			10,170
Minority interest		5,079			5,030
Long-term convertible debt		460,000			—

Stockholders’ equity:
Preferred stock, $0.001 par value, 8,000,000 shares authorized; none issued or outstanding		—			—
Common stock, $0.001 par value, 200,000,000 shares authorized; 105,337,362 shares issued (2004 - 105,337,362)		105			105
Additional paid-in capital		953,771			940,806
Accumulated earnings (deficit)		16,195			(66,690	)
Other comprehensive income		19,231			49,356
Less: Cost of treasury stock (14,806,217 shares and 2004 - 9,818,385)		(277,510	)		(159,617	)
Unearned compensation		(12,962	)		(7,404	)


Total stockholders’ equity		698,830			756,556


Total liabilities and stockholders’ equity	$	1,570,614		$	1,183,522

SYBASE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
PROFORMA WITHOUT PURCHASE ACCOUNTING, COST OF RESTRUCTURE, AND STOCK COMPENSATION EXPENSE
(UNAUDITED)


	Three Months Ended December 31,					Twelve Months Ended December 31,
(In thousands, except per share data)	2005			2004		2005			2004
Revenues:
License fees	$	91,333		$	87,160	$	291,695		$	275,872
Services		131,715			131,468		527,000			512,664


Total revenues		223,048			218,628		818,695			788,536

Costs and expenses:
Cost of license fees		11,830			11,381		39,706			42,977
Cost of services		37,989			39,068		155,945			161,848
Sales and marketing		65,315			63,022		249,701			242,431
Product development and engineering		36,235			31,013		138,973			119,877
General and administrative		21,480			22,515		85,520			87,115


Total costs and expenses		172,849			166,999		669,845			654,248


Operating income		50,199			51,629		148,850			134,288

Interest income and expense and other, net		4,204			3,079		14,824			11,574
Minority interest		(49	)		—		(49	)		—


Income before income taxes		54,354			54,708		163,625			145,862

Provision for income taxes		12,348			16,159		45,815			44,284


Net income	$	42,006		$	38,549	$	117,810		$	101,578


Basic net income per share	$	0.47		$	0.41	$	1.30		$	1.06


Shares used in computing basic net income per share		90,020			94,280		90,307			95,550


Diluted net income per share	$	0.45		$	0.40	$	1.26		$	1.04


Shares used in computing diluted net income per share		93,021			96,466		93,257			98,001

Note: The pro forma statement of operations is intended to present the Company’s operating results excluding purchase accounting adjustments associated with the acquisitions of Home Financial Network, Inc., New Era of Networks, Inc., AvantGo Inc., Dejima, Inc., XcelleNet, Inc., Avaki, Inc., ISDD Ltd., and Extended Systems, Inc. and other purchased intangibles. Such purchase accounting adjustments would include amortization of developed technology, amortization of intangibles, goodwill impairment loss, in-process research and development costs, and related adjustments for income tax provision. The pro forma statement of operations also excludes stock compensation expense, restructuring costs, and cumulative effect of an accounting change which we do not believe are indicative of our core business. Even though such items have recurred in the past and may recur in future periods, they are driven by events (such as acquisitions and restructurings) that occur sporadically and are not directly related to our ongoing core business operations. Pro forma financial information is never intended to be considered in isolation from, or as a substitute for, financial results prepared in accordance with GAAP.

SYBASE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)


	Three Months Ended December 31,					Twelve Months Ended December 31,
(In thousands, except per share data)	2005			2004		2005			2004
Revenues:
License fees	$	91,333		$	87,160	$	291,695		$	275,872
Services		131,715			131,468		527,000			512,664


Total revenues		223,048			218,628		818,695			788,536

Costs and expenses:
Cost of license fees		14,583			16,091		51,556			60,795
Cost of services		38,077			39,113		156,325			162,016
Sales and marketing		65,410			63,090		250,003			242,778
Product development and engineering		36,247			31,037		139,011			119,959
General and administrative		22,923			23,505		92,106			91,117
Amortization of other purchased intangibles		1,608			1,677		6,639			5,139
Reversal of purchase accounting accrual		—			—		—			(2,677	)
Cost of restructure		813			9,666		1,115			20,017


Total costs and expenses		179,661			184,179		696,755			699,144


Operating income		43,387			34,449		121,940			89,392

Interest income and expense and other, net		4,204			3,079		14,824			11,574
Minority interest		(49	)		—		(49	)		—


Income before income taxes		47,542			37,528		136,715			100,966

Provision for income taxes		19,147			13,417		51,132			33,016


Net income	$	28,395		$	24,111	$	85,583		$	67,950


Basic net income per share	$	0.32		$	0.26	$	0.95		$	0.71


Shares used in computing basic net income per share		90,020			94,280		90,307			95,550


Diluted net income per share	$	0.31		$	0.25	$	0.92		$	0.69


Shares used in computing diluted net income per share		93,021			96,466		93,257			98,001

SYBASE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)


	Twelve Months Ended
	December 31,
(Dollars in thousands)	2005			2004
Cash and cash equivalents, beginning of year	$	321,417		$	315,404
Cash flows from operating activities:
Net income		85,583			67,950
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		73,600			84,912
Write-off of assets in restructuring		–			6,908
Minority interest in income of subsidiaries		49			–
Loss on disposal of assets		528			2,680
Reversal of purchase accounting accrual		—			(2,677	)
Deferred income taxes		8,928			504
Amortization of deferred stock-based compensation		7,306			4,599
Amortization of note issuance costs		1,671			—
Changes in assets and liabilities:
Accounts receivable		(1,914	)		(5,342	)
Other current assets		(1,298	)		2,070
Other assets - operating		651			4,623
Accounts payable		(2,410	)		2,323
Accrued compensation and related expenses		7,072			3,397
Accrued income taxes		24,724			791
Other accrued liabilities		(10,570	)		(14,792	)
Deferred revenues		(26,436	)		8,887
Other liabilities		2,508			9,318

Net cash provided by operating activities		169,992			176,151
Cash flows from investing activities:
Decrease in restricted cash		2,583			191
Purchases of available-for-sale cash investments		(837,237	)		(201,417	)
Maturities of available-for-sale cash investments		439,737			149,923
Sales of available-for-sale cash investments		127,648			116,462
Business combinations, net of cash acquired		(71,890	)		(81,255	)
Purchases of property, equipment and improvements		(16,366	)		(30,445	)
Proceeds from sale of fixed assets		25			205
Capitalized software development costs		(33,906	)		(36,484	)
Decrease in other assets - investing		2			2

Net cash used for investing activities		(389,404	)		(82,818	)
Cash flows from financing activities:
Proceeds from the issuance of convertible subordinated notes, net of issuance costs		450,234			—
Repayments of long-term obligations		(1,012	)		(22,173	)
Payments on capital lease		(274	)		(63	)
Net proceeds from the issuance of common stock and reissuance of treasury stock		48,564			35,592
Purchases of treasury stock		(169,053	)		(115,563	)

Net cash provided by (used for) financing activities		328,459			(102,207	)
Effect of exchange rate changes on cash		(31,723	)		14,887

Net increase in cash and cash equivalents		77,324			6,013

Cash and cash equivalents, end of period		398,741			321,417
Cash investments, end of period		461,195			192,215

Total cash, cash equivalents and cash investments, end of period	$	859,936		$	513,632

SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
PROFORMA WITHOUT PURCHASE ACCOUNTING, COST OF RESTRUCTURE, AND STOCK COMPENSATION EXPENSE
FOR THE THREE MONTHS ENDED DECEMBER 31, 2005
(UNAUDITED)


	Infrastructure		iAnywhere						Consolidated
(In thousands, except per share data)	Platform Group		Solutions			Eliminations			Total
Revenues:
License fees
Infrastructure	$	58,509	$	(21	)	$	—		$	58,488
Mobile and Embedded		9,723		21,765			—			31,488
Financial Fusion products		1,357		—			—			1,357

Subtotal license fees		69,589		21,744			—			91,333
Intersegment license revenues		21		8,163			(8,184	)		—

Total license fees		69,610		29,907			(8,184	)		91,333

Services
Direct service revenue		115,148		11,579			—			126,727
Financial Fusion services		4,988		—			—			4,988
Intersegment service revenues		47		6,637			(6,684	)		—

Total services		120,183		18,216			(6,684	)		131,715


Total revenues		189,793		48,123			(14,868	)		223,048

Total allocated costs and expenses		155,019		33,998			(14,868	)		174,149


Operating income before unallocated costs	$	34,774	$	14,125		$	—		$	48,899

Other unallocated cost savings										(1,300	)


Operating income after unallocated expenses										50,199

Interest income and expense and other, net										4,204
Minority interest										(49	)


Income before income taxes										54,354

Provision for income taxes										12,348


Net income									$	42,006


Basic net income per share									$	0.47


Shares used in computing basic net income per share										90,020


Diluted net income per share									$	0.45


Shares used in computing diluted net income per share										93,021


	Infrastructure		iAnywhere					Consolidated
(In thousands, except per share data)	Platform Group		Solutions		Eliminations			Total
Revenues:
License fees Infrastructure	$	201,107	$	48	$	—		$	201,155
Mobile and Embedded		32,171		54,501		—			86,672
Financial Fusion products		3,868		—		—			3,868

Subtotal license fees		237,146		54,549		—			291,695
Intersegment license revenues		86		26,854		(26,940	)		—

Total license fees		237,232		81,403		(26,940	)		291,695

Services
Direct service revenue		462,575		38,981		—			501,556
Financial Fusion services		25,444		—		—			25,444
Intersegment service revenues		59		26,907		(26,966	)		—

Total services		488,078		65,888		(26,966	)		527,000


Total revenues		725,310		147,291		(53,906	)		818,695

Total allocated costs and expenses		613,912		116,402		(53,906	)		676,408


Operating income before unallocated costs	$	111,398	$	30,889	$	—		$	142,287

Other unallocated cost savings									(6,563	)


Operating income after unallocated expenses									148,850

Interest income and expense and other, net									14,824
Minority interest									(49	)


Income before income taxes									163,625

Provision for income taxes									45,815


Net income								$	117,810


Basic net income per share								$	1.30


Shares used in computing basic net income per share									90,307


Diluted net income per share								$	1.26


Shares used in computing diluted net income per share									93,257

SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED DECEMBER 31, 2005
(UNAUDITED)


	Infrastructure			iAnywhere						Consolidated
(In thousands, except per share data)	Platform Group			Solutions			Eliminations			Total
Revenues:
License fees
Infrastructure	$	58,509		$	(21	)	$	—		$	58,488
Mobile and Embedded		9,723			21,765			—			31,488
Financial Fusion products		1,357			—			—			1,357

Subtotal license fees		69,589			21,744			—			91,333
Intersegment license revenues		21			8,163			(8,184	)		—

Total license fees		69,610			29,907			(8,184	)		91,333

Services
Direct service revenue		115,148			11,579			—			126,727
Financial Fusion services		4,988			—			—			4,988
Intersegment service revenues		47			6,637			(6,684	)		—

Total services		120,183			18,216			(6,684	)		131,715


Total revenues		189,793			48,123			(14,868	)		223,048

Total allocated costs and expenses before cost of restructure and amortization of customer lists, covenant not to compete, and purchased technology		155,019			33,998			(14,868	)		174,149


Operating income before cost of restructure and amortization of customer lists, covenant not to compete, and purchased technology		34,774			14,125			—			48,899

Cost of restructure - 2005 Activity		(18	)		—			—			(18	)
Amortization of customer lists		500			936			—			1,436
Amortization of covenant not to compete		—			156			—			156
Amortization of trademark		—			16			—			16
Amortization of purchased technology		1,064			1,689			—			2,753


Operating income before unallocated costs	$	33,228		$	11,328		$	—		$	44,556

Other unallocated costs											1,169

Operating income after unallocated expenses											43,387

Interest income and expense and other, net											4,204
Minority interest											(49	)


Income before income taxes											47,542

Provision for income taxes											19,147


Net income										$	28,395


Basic net income per share										$	0.32


Shares used in computing basic net income per share											90,020


Diluted net income per share										$	0.31


Shares used in computing diluted net income per share											93,021

SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2005
(UNAUDITED)


	Infrastructure		iAnywhere					Consolidated
(In thousands, except per share data)	Platform Group		Solutions		Eliminations			Total
Revenues:
License fees
Infrastructure	$	201,107	$	48	$	—		$	201,155
Mobile and Embedded		32,171		54,501		—			86,672
Financial Fusion products		3,868		—		—			3,868

Subtotal license fees		237,146		54,549		—			291,695
Intersegment license revenues		86		26,854		(26,940	)		—

Total license fees		237,232		81,403		(26,940	)		291,695

Services
Direct service revenue		462,575		38,981		—			501,556
Financial Fusion services		25,444		—		—			25,444
Intersegment service revenues		59		26,907		(26,966	)		—

Total services		488,078		65,888		(26,966	)		527,000


Total revenues		725,310		147,291		(53,906	)		818,695

Total allocated costs and expenses before cost of restructure and amortization of customer lists, covenant not to compete, and purchased technology		613,912		116,402		(53,906	)		676,408


Operating income before cost of restructure and amortization of customer lists, covenant not to compete, and purchased technology		111,398		30,889		—			142,287

Cost of restructure - 2005 Activity		284		—		—			284
Amortization of customer lists		2,000		3,069		—			5,069
Amortization of covenant not to compete		—		1,554		—			1,554
Amortization of trademark		—		16		—			16
Amortization of purchased technology		7,224		4,626		—			11,850


Operating income before unallocated costs	$	101,890	$	21,624	$	—		$	123,514

Other unallocated costs									1,574

Operating income after unallocated expenses									121,940

Interest income and expense and other, net									14,824
Minority interest									(49	)


Income before income taxes									136,715


Provision for income taxes									51,132


Net income								$	85,583


Basic net income per share								$	0.95


Shares used in computing basic net income per share									90,307


Diluted net income per share								$	0.92


Shares used in computing diluted net income per share									93,257