EX-99.1 3 f96063exv99w1.htm EXHIBIT 99.1 exv99w1
 

Exhibit 99.1

For Financial Inquiries Contact:
Scott Irey
scott.irey@sybase.com
(925) 236-6751

For Press Inquiries Contact:
Leslie Nakajima
Sybase Public Relations
leslien@sybase.com
(925) 236-8650

SYBASE BEATS FOURTH QUARTER REVENUE AND PRO FORMA
EPS ESTIMATES

Mobile and Wireless Business Grows 19 Percent Year-Over-Year; Company Adds
143 New Enterprise Database Customers in Q4

DUBLIN, Calif. – January 27, 2004 – Sybase, Inc. (NYSE: SY), a leading enterprise infrastructure and mobile software company, today announced fourth quarter 2003 net income of $39.2 million on a pro forma basis, or earnings per share of $0.39 on a diluted basis (EPS), exceeding First Call consensus EPS estimates of $0.31. Net income for the same period calculated in accordance with generally accepted accounting principles (GAAP) was $37.7 million, or EPS of $0.38.

     Pro forma net income for the full year 2003 was $105.8 million, or EPS of $1.08, and GAAP net income for the same period was $87.2 million, or EPS of $0.89.

     Total revenues for the fourth quarter 2003 were $210.7 million compared to fourth quarter 2002 revenues of $210.6 million. Total revenues for the full year 2003 were $778.1 million compared to $829.9 million for 2002.

     “With clear signs of economic stabilization in the fourth quarter, we enter 2004 with renewed optimism about the future of IT spending,” said John Chen, chairman, CEO and president of Sybase, Inc. “The magnitude of new customer wins in Q4, including business from customers who have not purchased from us in recent years, signals a re-focused energy on strategic IT investments. For example, our Unwired solutions subsidiary recorded it’s highest revenues in the past two years. Looking

 

 

ahead, we think Unwired solutions, the Linux database and the Asia Pacific region will remain strong growth areas for Sybase.”

     Pro forma net income for the fourth quarter of 2002 was $29.3 million, or EPS of $0.30. GAAP net income (loss) was ($9.8) million, or EPS of ($0.10) for the same period. For the full year 2002, pro forma net income was $101.4 million, or EPS of $1.02 compared to GAAP net income (loss) of ($94.7) million, or EPS of ($0.95) for the same period.

     Pro forma amounts exclude deductions related to purchased intangibles, stock-based compensation expense, restructuring charges and the related income tax effects.

     A detailed reconciliation of pro forma and GAAP amounts in this release and full details of the company’s financial results are set forth in the attached financial exhibits.

Balance Sheet and Other Data

     For the period ended December 31, 2003, Sybase reported $581.9 million in cash and cash investments, including restricted cash of $8.1 million. This is the highest cash balance in the company’s history. The company also generated $55.1 million in cash flow from operations in the fourth quarter bringing total year-to-date cash flow from operations to $202.1 million.

     Days sales outstanding for the three months ended December 31, 2003 was 60 days, compared with 72 days for the three months ended December 31, 2002.

About Sybase, Inc.

Celebrating 20 years of innovation, Sybase enables the Unwired Enterprise by delivering enterprise and mobile infrastructure, development and integration software solutions. Organizations can attain maximum value from their data assets by getting the right information to the right people at the right time and place. The world’s most critical data in commerce, finance, government, healthcare and defense runs on Sybase. For more information, visit the Sybase Web site: http://www.sybase.com.

# # # #

 

 

Forward-looking Statements: Statements in this release concerning Sybase, Inc., its subsidiaries and their respective prospects and future growth are forward-looking statements that involve a number of uncertainties and risks. Factors that could cause actual events or results to differ materially from those suggested by such forward-looking statements include general business conditions; sales productivity; possible disruptive effects of organizational or personnel changes; 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; rapid technological changes; competitive factors; unanticipated delays in scheduled product availability dates; interoperability of the company’s products with other leading software application products; volatility of the stock markets generally; market growth rates in the client/server and Internet software markets; and other factors discussed in Sybase, Inc.’s reports filed with the Securities Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2002, and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2003.

 

 

Sybase Fourth Quarter 2003 Selected Highlights

Sybase announcements during the fourth quarter of 2003 extended the company’s leadership in the mobile enterprise computing market, positioned it for growth in the core data management market and expanded its reach with key strategic partnerships.

In Q4 2003, Sybase:

Mobile Enterprise Computing

•   Launched the Unwired Enterprise initiative, helping organizations to manage and mobilize data, and giving workers access to business-critical information anytime, anywhere:
 
    http://www.sybase.com/detail/1,6904,1027333,00.html
 
•   Debuted new versions of Mobile Pharma and Mobile Sales from Sybase subsidiary iAnywhere Solutions®, further strengthening CRM adoption and analytics:
 
    http://www.sybase.com/detail/1,6904,1026871,00.html
 
    http://www.ianywhere.com/press_releases/ias_mobilesales.html
 
•   Announced that Intuit selected Sybase subsidiary iAnywhere Solutions’ technology to power its CRM applications for small businesses:
 
    http://www.ianywhere.com/press_releases/intuit_crm_applications.html
 
•   Announced an exclusive contract between Sybase subsidiary iAnywhere Solutions and Salesforce.com for mobile sales force automation technology:
 
    http://www.ianywhere.com/press_releases/ias_salesforcecom.html
 
•   Announced that Hyundai/Kia Motor Companies selected Sybase to power mobile sales force automation solution:
 
    http://www.sybase.com/detail/1,6904,1027320,00.html

Data Management and Enterprise Applications

•   Unveiled Sybase Replication Server® 12.6, which simplifies data transactions and minimizes data downtime across the enterprise:
 
    http://www.sybase.com/detail/1,6904,1027577,00.html
 
•   Announced the availability of its enterprise-class relational database management system (RDBMS), Sybase Adaptive Server® Enterprise 12.5.1:
 
    http://www.sybase.com/detail/1,6904,1026395,00.html
 
•   Announced the availability of ASE on HP-UX and Red Hat Linux operating systems on the Intel Itanium 2-based platform:
 
    http://www.sybase.com/detail/1,6904,1027601,00.html
 
•   Announced T. Rowe Price selected Sybase for outsourced data management services:
 
    http://www.sybase.com/detail/1,6904,1027647,00.html

Partnerships:

•   Announced a collaboration with Intel and Sybase subsidiary iAnywhere Solutions to further the development of mobilized software for Wi-Fi users in small to medium-sized businesses (SMBs):
 
    http://www.sybase.com/detail/1,6904,1026685,00.html
 
•   Announced a global agreement with SAP to deliver integrated solutions for small and medium-sized businesses, as well as mobile solutions for SAP BusinessOne customers:
 
    http://www.sybase.com/detail/1,6904,1027334,00.html

 

 

Awards and Benchmarking:

•   Announced that the world’s largest data warehouses run on Sybase IQ 12.5, according to Winter Corporation, a leading expert in database scalability for enterprise applications and business intelligence:
 
    http://www.sybase.com/detail/1,6904,1027323,00.html
 
•   Announced leading share for Sybase PowerDesigner® in data modeling market according to Gartner Dataquest:
 
    http://www.sybase.com/detail/1,6904,1026874,00.html
 
•   Announced that research firm IDC named Sybase’s subsidiary iAnywhere Solutions as the leader in the Western European mobile middleware market:
 
    http://www.ianywhere.com/press_releases/idc_europe.html
 
•   Editors of PC Magazine Select SQL Anywhere® Studio as “Best Product of the Year for 2003”:
 
    http://www.pcmag.com/print_article/0,3048,a=115319,00.asp
 
•   Sybase ASE wins the 2003 LinuxWorld magazine Reader’s Choice Award for “Best Linux Database”:
 
    http://www.sybase.com/detail/1,6904,1028042,00.html
 
•   ASE 12.5 for Linux and Turbolinux 7 Server, recently won “The Best SMB Linux Package Award” in the 2003 Open Source World Magazine’s Editor’s Choice Awards in China:
 
    http://www.sybase.com/detail/1,6904,1028042,00.html

Sybase, iAnywhere Solutions, SQL Anywhere, Replication Server and PowerDesigner are U.S. registered trademarks of Sybase, Inc. or its subsidiaries.

 

 

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

                                                     
        Three Months Ended December 31, 2003   Three Months Ended December 31, 2002
       
 
(In thousands, except per share data)           Pro forma                   Pro forma        
        GAAP   Adjustments (2)   Pro forma   GAAP   Adjustments (2)   Pro forma
       
 
 
 
 
 
Revenues:
                                                
 
License fees
   $ 81,564       —     $ 81,564     $ 85,864       —     $ 85,864  
 
Services
     129,088       —       129,088       124,689       —       124,689  
 
    
     
     
     
     
     
 
   
Total revenues
     210,652       —       210,652       210,553       —       210,553  
Costs and expenses:
                                                
 
Cost of license fees
     16,656       (3,831 )  a     12,825       13,993       (3,731 )  a     10,262  
 
Cost of services
     42,140       —       42,140       43,114       —       43,114  
 
Sales and marketing
     61,613       —       61,613       68,051       —       68,051  
 
Product development and engineering
     28,578       —       28,578       30,269       —       30,269  
 
General and administrative
     19,260       —       19,260       21,429       —       21,429  
 
Amortization of other purchased intangibles
     500       (500 ) a     —       500       (500 ) a     —  
 
Goodwill impairment loss
     —       —   b     —       12,300       (12,300 ) b     —  
 
Stock compensation expense
     799       (799 ) c     —       446       (446 ) c     —  
 
Cost (Reversal) of restructure
     (1,589 )     1,589   d     —       35,022       (35,022 ) d     —  
 
 
    
     
     
     
     
     
 
   
Total costs and expenses
     167,957       (3,541 )     164,416       225,124       (51,999 )     173,125  
 
 
    
     
     
     
     
     
 
Operating income (loss)
     42,695       3,541       46,236       (14,571 )     51,999       37,428  
Interest income and expense and other, net
     1,529       —       1,529       2,344       —       2,344  
 
 
    
     
     
     
     
     
 
Income (Loss) before income taxes and cumulative effect of an accounting change
     44,224       3,541       47,765       (12,227 )     51,999       39,772  
Provision for income taxes
     6,502       2,072   e     8,574       (2,449 )     12,953   e     10,504  
 
 
    
     
     
     
     
     
 
Income (Loss) before cumulative effect of an accounting change
     37,722       1,469       39,191       (9,778 )     39,046       29,268  
Cumulative effect of an accounting change to adopt FAS 142
     —       —   f     —       —       —   f     —  
 
 
    
     
     
     
     
     
 
   
Net income (loss)
   $ 37,722     $ 1,469     $ 39,191     $ (9,778 )   $ 39,046     $ 29,268  
 
 
    
     
     
     
     
     
 
Income (Loss) per share before cumulative effect of an accounting change
   $ 0.39     $ 0.02     $ 0.41     $ (0.10 )   $ 0.41     $ 0.31  
Cumulative effect of an accounting change
     —       —       —       —       —       —  
 
    
     
     
     
     
     
 
Basic net income (loss) per share
   $ 0.39     $ 0.02     $ 0.41     $ (0.10 )   $ 0.41     $ 0.31  
 
 
    
     
     
     
     
     
 
Shares used in computing basic net income (loss) per share
     96,662       96,662       96,662       94,423       94,423       94,423  
 
 
    
     
     
     
     
     
 
Income (Loss) per share before cumulative effect of an accounting change
   $ 0.38     $ 0.01     $ 0.39     $ (0.10 )   $ 0.40     $ 0.30  
Cumulative effect of an accounting change
     —       —       —       —       —       —  
 
    
     
     
     
     
     
 
Diluted net income (loss) per share
   $ 0.38     $ 0.01     $ 0.39     $ (0.10 )   $ 0.40     $ 0.30  
 
 
    
     
     
     
     
     
 
Shares used in computing diluted net income (loss) per share
     100,253       100,253       100,253       94,423       96,805       96,805  
 
 
    
     
     
     
     
     
 

(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 from prior restructuring activities because we do not believe they are indicative of our core business. For the sake of consistency and clarity in our financial reporting, we will continue to include the costs associated with restructuring activity committed to prior to Q3 2003 as a pro forma adjustment in our financial statements until the related charges and liabilities are completely settled. 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) goodwill impairment loss; (c) amortization of unearned stock compensation; (d) cost of restructuring charges; (e) income tax effect of proforma adjustments; (f) cumulative effect of an accounting change.

 

 

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

                                                     
        Twelve Months Ended December 31, 2003   Twelve Months Ended December 31, 2002
       
 
(In thousands, except per share data)           Pro forma                   Pro forma        
        GAAP   Adjustments (2)   Pro forma   GAAP   Adjustments (2)   Pro forma
       
 
 
 
 
 
Revenues:
                                                
 
License fees
   $ 274,817       —     $ 274,817     $ 325,916       —     $ 325,916  
 
Services
     503,245       —       503,245       503,945       —       503,945  
 
    
     
     
     
     
     
 
   
Total revenues
     778,062       —       778,062       829,861       —       829,861  
Costs and expenses:
                                                
 
Cost of license fees
     60,711       (15,257 )  a     45,454       51,448       (14,924 )  a     36,524  
 
Cost of services
     162,666       —       162,666       190,067       —       190,067  
 
Sales and marketing
     239,045       —       239,045       271,765       —       271,765  
 
Product development and engineering
     116,889       —       116,889       117,784       —       117,784  
 
General and administrative
     82,111       —       82,111       84,938       —       84,938  
 
Amortization of other purchased intangibles
     2,000       (2,000 )  a     —       2,000       (2,000 )  a     —  
 
Goodwill impairment loss
     —       —    b     —       12,300       (12,300 )  b     —  
 
Stock compensation expense
     2,882       (2,882 )  c     —       1,937       (1,937 )  c     —  
 
Cost of restructure
     7,429       (7,429 )  d     —       40,446       (40,446 )  d     —  
 
 
    
     
     
     
     
     
 
   
Total costs and expenses
     673,733       (27,568 )     646,165       772,685       (71,607 )     701,078  
 
 
    
     
     
     
     
     
 
Operating income
     104,329       27,568       131,897       57,176       71,607       128,783  
Interest income and expense and other, net
     13,766       —       13,766       14,033       —       14,033  
 
 
    
     
     
     
     
     
 
Income before income taxes and cumulative effect of an accounting change
     118,095       27,568       145,663       71,209       71,607       142,816  
Provision for income taxes
     30,829       9,072     e     39,901       33,428       7,989     e     41,417  
 
 
    
     
     
     
     
     
 
Income before cumulative effect of an accounting change
     87,266       18,496       105,762       37,781       63,618       101,399  
Cumulative effect of an accounting change to adopt FAS 142
     —       —     f     —       (132,450 )     132,450     f     —  
 
 
    
     
     
     
     
     
 
   
Net income (loss)
   $ 87,266     $ 18,496     $ 105,762     $ (94,669 )   $ 196,068     $ 101,399  
 
 
    
     
     
     
     
     
 
Income per share before cumulative effect of an accounting change
   $ 0.92     $ 0.20     $ 1.12     $ 0.39     $ 0.66     $ 1.05  
Cumulative effect of an accounting change
     —       —       —       (1.37 )     1.37       —  
 
 
    
     
     
     
     
     
 
Basic net income (loss) per share
   $ 0.92     $ 0.20     $ 1.12     $ (0.98 )   $ 2.03     $ 1.05  
 
 
    
     
     
     
     
     
 
Shares used in computing basic net income (loss) per share
     94,833       94,833       94,833       96,844       96,844       96,844  
 
 
    
     
     
     
     
     
 
Income per share before cumulative effect of an accounting change
   $ 0.89     $ 0.19     $ 1.08     $ 0.38     $ 0.64     $ 1.02  
Cumulative effect of an accounting change
     —       —       —       (1.33 )     1.33       —  
 
 
    
     
     
     
     
     
 
Diluted net income (loss) per share
   $ 0.89     $ 0.19     $ 1.08     $ (0.95 )   $ 1.97     $ 1.02  
 
 
    
     
     
     
     
     
 
Shares used in computing diluted net income (loss) per share
     97,582       97,582       97,582       99,584       99,584       99,584  
 
 
    
     
     
     
     
     
 

(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 from prior restructuring activities because we do not believe they are indicative of our core business. For the sake of consistency and clarity in our financial reporting, we will continue to include the costs associated with restructuring activity committed to prior to Q3 2003 as a pro forma adjustment in our financial statements until the related charges and liabilities are completely settled. 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) goodwill impairment loss; (c) amortization of unearned stock compensation; (d) cost of restructuring charges; (e) income tax effect of proforma adjustments; (f) cumulative effect of an accounting change.

 

 

SYBASE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

                       
          December 31,   December 31,
(In thousands, except share and per share data)   2003   2002
          (Unaudited)    
Current assets:
                
 
Cash and cash equivalents
   $ 315,404     $ 231,267  
 
Short-term investments
     155,093       63,740  
 
 
    
     
 
     
Total cash, cash equivalents and short-term cash investments
     470,497       295,007  
 
Restricted cash
     4,747       5,653  
 
Accounts receivable, net
     140,332       169,193  
 
Deferred income taxes
     12,739       20,097  
 
Other current assets
     16,167       14,669  
 
 
    
     
 
     
Total current assets
     644,482       504,619  
Long-term cash investments
     103,296       92,173  
Restricted long-term cash investments
     3,400       —  
Property, equipment and improvements, net
     67,462       70,402  
Deferred income taxes
     58,506       46,295  
Capitalized software, net
     58,947       62,266  
Goodwill, net
     140,875       136,826  
Other purchased intangibles, net
     38,715       50,473  
Other assets
     35,673       29,695  
 
 
    
     
 
   
Total assets
   $ 1,151,356     $ 992,749  
 
 
    
     
 
Current liabilities:
                
 
Accounts payable
   $ 15,425     $ 13,085  
 
Accrued compensation and related expenses
     39,134       36,671  
 
Accrued income taxes
     33,677       34,023  
 
Other accrued liabilities
     94,611       112,468  
 
Deferred revenue
     206,881       200,458  
 
 
    
     
 
     
Total current liabilities
     389,728       396,705  
Other liabilities
     15,129       10,641  
Minority interest
     5,030       5,029  
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 (2002 - 105,337,362)
     105       105  
 
Additional paid-in capital
     933,657       929,064  
 
Accumulated deficit
     (126,385 )     (189,936 )
 
Other comprehensive income/(loss)
     26,849       (8,673 )
 
Less: Cost of treasury stock (8,640,205 shares and 2002 - 10,677,306)
     (87,672 )     (146,816 )
 
Unearned compensation
     (5,085 )     (3,370 )
 
 
    
     
 
     
Total stockholders’ equity
     741,469       580,374  
 
    
     
 
   
Total liabilities and stockholders’ equity
   $ 1,151,356     $ 992,749  
 
 
    
     
 

 

 

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

                                     
        Three Months Ended December 31,   Twelve Months Ended December 31,
       
 
(In thousands, except per share data)   2003   2002   2003   2002
       
 
 
 
Revenues:
                                
 
License fees
   $ 81,564     $ 85,864     $ 274,817     $ 325,916  
 
Services
     129,088       124,689       503,245       503,945  
 
 
    
     
     
     
 
   
Total revenues
     210,652       210,553       778,062       829,861  
Costs and expenses:
                                
 
Cost of license fees
     16,656       13,993       60,711       51,448  
 
Cost of services
     42,140       43,114       162,666       190,067  
 
Sales and marketing
     61,613       68,051       239,045       271,765  
 
Product development and engineering
     28,578       30,269       116,889       117,784  
 
General and administrative
     19,260       21,429       82,111       84,938  
 
Amortization of other purchased intangibles
     500       500       2,000       2,000  
 
Goodwill impairment loss
     —       12,300       —       12,300  
 
Stock compensation expense
     799       446       2,882       1,937  
 
Cost of restructure
     (1,589 )     35,022       7,429       40,446  
 
 
    
     
     
     
 
   
Total costs and expenses
     167,957       225,124       673,733       772,685  
 
 
    
     
     
     
 
Operating income (loss)
     42,695       (14,571 )     104,329       57,176  
Interest income and expense and other, net
     1,529       2,344       13,766       14,033  
 
 
    
     
     
     
 
Income (Loss) before income taxes and cumulative effect of an accounting change
     44,224       (12,227 )     118,095       71,209  
Provision for income taxes
     6,502       (2,449 )     30,829       33,428  
 
 
    
     
     
     
 
Income (Loss) before cumulative effect of an accounting change
     37,722       (9,778 )     87,266       37,781  
Cumulative effect of an accounting change to adopt FAS 142
     —       —       —       (132,450 )
 
 
    
     
     
     
 
   
Net income (loss)
   $ 37,722     $ (9,778 )   $ 87,266     $ (94,669 )
 
 
    
     
     
     
 
Income (Loss) per share before cumulative effect of an accounting change
   $ 0.39     $ (0.10 )   $ 0.92     $ 0.39  
Cumulative effect of an accounting change
     —       —       —       (1.37 )
 
    
     
     
     
 
Basic net income (loss) per share
   $ 0.39     $ (0.10 )   $ 0.92     $ (0.98 )
 
 
    
     
     
     
 
Shares used in computing basic net income (loss) per share
     96,662       94,423       94,833       96,844  
 
 
    
     
     
     
 
Income (Loss) per share before cumulative effect of an accounting change
   $ 0.38     $ (0.10 )   $ 0.89     $ 0.38  
Cumulative effect of an accounting change
     —       —       —       (1.33 )
 
 
    
     
     
     
 
Diluted net income (loss) per share
   $ 0.38     $ (0.10 )   $ 0.89     $ (0.95 )
 
 
    
     
     
     
 
Shares used in computing diluted net income (loss) per share
     100,253       94,423       97,582       99,584  
 
 
    
     
     
     
 

 

 

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)   2003   2002   2003   2002
       
 
 
 
Revenues:
                                
 
License fees
   $ 81,564     $ 85,864     $ 274,817     $ 325,916  
 
Services
     129,088       124,689       503,245       503,945  
 
    
     
     
     
 
   
Total revenues
     210,652       210,553       778,062       829,861  
Costs and expenses:
                                
 
Cost of license fees
     12,825       10,262       45,454       36,524  
 
Cost of services
     42,140       43,114       162,666       190,067  
 
Sales and marketing
     61,613       68,051       239,045       271,765  
 
Product development and engineering
     28,578       30,269       116,889       117,784  
 
General and administrative
     19,260       21,429       82,111       84,938  
 
 
    
     
     
     
 
   
Total costs and expenses
     164,416       173,125       646,165       701,078  
 
 
    
     
     
     
 
Operating income
     46,236       37,428       131,897       128,783  
Interest income and expense and other, net
     1,529       2,344       13,766       14,033  
 
 
    
     
     
     
 
Income before income taxes
     47,765       39,772       145,663       142,816  
Provision for income taxes
     8,574       10,504       39,901       41,417  
 
 
    
     
     
     
 
   
Net income
   $ 39,191     $ 29,268     $ 105,762     $ 101,399  
 
 
    
     
     
     
 
Basic net income per share
   $ 0.41     $ 0.31     $ 1.12     $ 1.05  
 
 
    
     
     
     
 
Shares used in computing basic net income per share
     96,662       94,423       94,833       96,844  
 
 
    
     
     
     
 
Diluted net income per share
   $ 0.39     $ 0.30     $ 1.08     $ 1.02  
 
 
    
     
     
     
 
Shares used in computing diluted net income per share
     100,253       96,805       97,582       99,584  
 
 
    
     
     
     
 

    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., and AvantGo 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.

 

 

SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2003
(UNAUDITED)

(In thousands, except per share data)

                                               
          Infrastructure   iAnywhere   Financial           Consolidated
          Platform Group   Solutions, Inc.   Fusion, Inc.   Eliminations   Total
         
 
 
 
 
Revenues:
                                        
 
License fees
                                        
   
Enterprise
   $ 155,182     $ 763     $ —     $ —     $ 155,945  
   
E-Business
     39,144       —       —       —       39,144  
   
Mobile and Embedded
     26,049       33,807       —       —       59,856  
   
E-Finance
     1,527       —       2,622       —       4,149  
   
Datawarehouse
     15,723       —       —       —       15,723  
   
 
    
     
     
     
     
 
     
Subtotal license fees
     237,625       34,570       2,622       —       274,817  
   
Intersegment license revenues
     86       21,778       1,271       (23,135 )     —  
   
 
    
     
     
     
     
 
     
Total license fees
     237,711       56,348       3,893       (23,135 )     274,817  
 
Services
     481,004       10,212       12,029       —       503,245  
   
Intersegment service revenues
     11       25,691       4,711       (30,413 )     —  
   
 
    
     
     
     
     
 
     
Total services
     481,015       35,903       16,740       (30,413 )     503,245  
   
 
    
     
     
     
     
 
   
Total revenues
     718,726       92,251       20,633       (53,548 )     778,062  
Total allocated costs and expenses before cost of restructure and amortization of customer lists and purchased technology
     616,447       72,362       24,892       (53,548 )     660,153  
   
 
    
     
     
     
     
 
Operating income (loss) before cost of restructure and amortization of customer lists and purchased technology
     102,279       19,889       (4,259 )     —       117,909  
Cost of restructure - 2003 Activity
     9,199       341       13       —       9,553  
Amortization of customer lists
     —       —       2,000       —       2,000  
Amortization of purchased technology
     11,679       333       3,245       —       15,257  
   
 
    
     
     
     
     
 
Operating income (loss) before unallocated costs
   $ 81,401     $ 19,215     $ (9,517 )   $ —     $ 91,099  
Other unallocated expenses
                                     (13,230 )
 
                                    
 
Operating income after unallocated expenses
                                     104,329  
Interest income and expense and other, net
                                     13,766  
 
                                    
 
Income before income taxes
                                     118,095  
Provision for income taxes
                                     30,829  
 
                                    
 
Net income
                                   $ 87,266  
 
                                    
 
Basic net income per share
                                   $ 0.92  
 
                                    
 
Shares used in computing basic net income per share
                                     94,833  
 
                                    
 
Diluted net income per share
                                   $ 0.89  
 
                                    
 
Shares used in computing diluted net income per share
                                     97,582  
 
                                    
 

 

 

SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED DECEMBER 31, 2003
(UNAUDITED)

(In thousands, except per share data)

                                               
          Infrastructure   iAnywhere   Financial           Consolidated
          Platform Group   Solutions, Inc.   Fusion, Inc.   Eliminations   Total
         
 
 
 
 
Revenues:
                                        
 
License fees
                                        
   
Enterprise
   $ 47,548     $ 21     $ —     $ —     $ 47,569  
   
E-Business
     9,334       —       —       —       9,334  
   
Mobile and Embedded
     7,916       9,703       —       —       17,619  
   
E-Finance
     350       —       888       —       1,238  
   
Datawarehouse
     5,804       —       —       —       5,804  
   
 
    
     
     
     
     
 
     
Subtotal license fees
     70,952       9,724       888       —       81,564  
   
Intersegment license revenues
     22       6,610       272       (6,904 )     —  
   
 
    
     
     
     
     
 
     
Total license fees
     70,974       16,334       1,160       (6,904 )     81,564  
 
Services
     122,080       2,794       4,214               129,088  
   
Intersegment service revenues
     7       6,594       1,241       (7,842 )     —  
   
 
    
     
     
     
     
 
     
Total services
     122,087       9,388       5,455       (7,842 )     129,088  
   
 
    
     
     
     
     
 
   
Total revenues
     193,061       25,722       6,615       (14,746 )     210,652  
Total allocated costs and expenses before cost of restructure and amortization of customer lists and purchased technology
     156,952       18,946       6,975       (14,746 )     168,127  
   
 
    
     
     
     
     
 
Operating income (loss) before cost of restructure and amortization of customer lists and purchased technology
     36,109       6,776       (360 )     —       42,525  
Cost of restructure - 2003 Activity
     (377 )     —       —       —       (377 )
Amortization of customer lists
     —       —       500       —       500  
Amortization of purchased technology
     2,920       100       811       —       3,831  
   
 
    
     
     
     
     
 
Operating income (loss) before unallocated costs
   $ 33,566     $ 6,676     $ (1,671 )   $ —     $ 38,571  
Other unallocated expenses
                                     (4,124 )
 
                                    
 
Operating income after unallocated expenses
                                     42,695  
Interest income and expense and other, net
                                     1,529  
 
                                    
 
Income before income taxes
                                     44,224  
Provision for income taxes
                                     6,502  
 
                                    
 
Net income
                                   $ 37,722  
 
                                    
 
Basic net income per share
                                   $ 0.39  
 
                                    
 
Shares used in computing basic net income per share
                                     96,662  
 
                                    
 
Diluted net income per share
                                   $ 0.38  
 
                                    
 
Shares used in computing diluted net income per share
                                     100,253  
 
                                    
 

 

 

SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED DECEMBER 31, 2003
PROFORMA WITHOUT PURCHASE ACCOUNTING, COST OF RESTRUCTURE, AND STOCK COMPENSATION EXPENSE
(UNAUDITED)

(In thousands, except per share data)

                                               
          Infrastructure   iAnywhere   Financial           Consolidated
          Platform Group   Solutions, Inc.   Fusion, Inc.   Eliminations   Total
         
 
 
 
 
Revenues:
                                        
 
License fees
                                       
   
Enterprise
   $ 47,548     $ 21     $ —     $ —     $ 47,569  
   
E-Business
     9,334       —       —       —       9,334  
   
Mobile and Embedded
     7,916       9,703       —       —       17,619  
   
E-Finance
     350       —       888       —       1,238  
   
Datawarehouse
     5,804       —       —       —       5,804  
 
 
    
     
     
     
     
 
     
Subtotal license fees
     70,952       9,724       888       —       81,564  
   
Intersegment license revenues
     22       6,610       272       (6,904 )     —  
 
 
    
     
     
     
     
 
     
Total license fees
     70,974       16,334       1,160       (6,904 )     81,564  
 
Services
     122,080       2,794       4,214       —       129,088  
   
Intersegment service revenues
     7       6,594       1,241       (7,842 )     —  
 
 
    
     
     
     
     
 
     
Total services
     122,087       9,388       5,455       (7,842 )     129,088  
 
 
    
     
     
     
     
 
   
Total revenues
     193,061       25,722       6,615       (14,746 )     210,652  
Total allocated costs and expenses
     156,952       18,946       6,975       (14,746 )     168,127  
 
 
    
     
     
     
     
 
Operating income (loss) before unallocated expenses
   $ 36,109     $ 6,776     $ (360 )   $ —     $ 42,525  
Other unallocated expenses
                                     (3,711 )
 
                                    
 
Operating income after unallocated expenses
                                     46,236  
Interest income and expense and other, net
                                     1,529  
 
                                    
 
Income before Income taxes
                                     47,765  
Provision for income taxes
                                     8,574  
 
                                    
 
Net income
                                   $ 39,191  
 
                                    
 
Basic net income per share
                                   $ 0.41  
 
                                    
 
Shares used in computing basic net income per share
                                     96,662  
 
                                    
 
Diluted net income per share
                                   $ 0.39  
 
                                    
 
Shares used in computing diluted net income per share
                                     100,253  
 
                                    
 

      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., and AvantGo 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.

 

 

SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2003
PROFORMA WITHOUT PURCHASE ACCOUNTING, COST OF RESTRUCTURE, AND STOCK COMPENSATION EXPENSE
(UNAUDITED)

(In thousands, except per share data)

                                               
          Infrastructure   iAnywhere   Financial         Consolidated  
          Platform Group   Solutions, Inc.   Fusion, Inc.   Eliminations Total  
         
 
 
 
 
Revenues:
                                        
 
License fees
                                       
   
Enterprise
   $ 155,182     $ 763     $ —     $ —     $ 155,945  
   
E-Business
     39,144       —       —       —       39,144  
   
Mobile and Embedded
     26,049       33,807       —       —       59,856  
   
E-Finance
     1,527       —       2,622       —       4,149  
   
Datawarehouse
     15,723       —       —       —       15,723  
 
 
    
     
     
     
     
 
     
Subtotal license fees
     237,625       34,570       2,622       —       274,817  
   
Intersegment license revenues
     86       21,778       1,271       (23,135 )     —  
 
 
    
     
     
     
     
 
     
Total license fees
     237,711       56,348       3,893       (23,135 )     274,817  
 
Services
     481,004       10,212       12,029       —       503,245  
   
Intersegment service revenues
     11       25,691       4,711       (30,413 )     —  
 
 
    
     
     
     
     
 
     
Total services
     481,015       35,903       16,740       (30,413 )     503,245  
 
 
    
     
     
     
     
 
   
Total revenues
     718,726       92,251       20,633       (53,548 )     778,062  
Total allocated costs and expenses
     616,447       72,362       24,892       (53,548 )     660,153  
 
 
    
     
     
     
     
 
Operating income (loss) before unallocated expenses
   $ 102,279     $ 19,889     $ (4,259 )   $ —     $ 117,909  
Other unallocated expenses
                                     (13,988 )
 
                                    
 
Operating income after unallocated expenses
                                     131,897  
Interest income and expense and other, net
                                     13,766  
 
                                    
 
Income before income taxes
                                     145,663  
Provision for income taxes
                                     39,901  
 
                                    
 
Net income
                                   $ 105,762  
 
                                    
 
Basic net income per share
                                   $ 1.12  
 
                                    
 
Shares used in computing basic net income per share
                                     94,833  
 
                                    
 
Diluted net income per share
                                   $ 1.08  
 
                                    
 
Shares used in computing diluted net income per share
                                     97,582  
 
                                    
 

      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., and AvantGo 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.

 

 

Consolidated Statements of Cash Flows

                               
          For the years ended December 31,
(Dollars in thousands)   2003   2002   2001
         
 
 
Cash and cash equivalents, beginning of year
   $ 231,267     $ 222,793     $ 235,588  
Cash flows from operating activities:
                        
 
Net income (loss)
     87,266       (94,669 )     (25,522 )
 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
                        
   
Depreciation and amortization
     84,885       81,342       136,482  
   
Write-off of in-process research and development
                     18,500  
   
Write-off of assets in restructuring
     258       992       3,188  
   
Minority interest in income (loss) of subsidiaries
                     30  
   
Gain on disposal of assets
     (435 )     (3,004 )     (962 )
   
Goodwill impairment
             144,750          
   
Deferred income taxes
     729       (4,771 )     (1,563 )
   
Tax benefit from exercise of stock options
             3,451       1,039  
   
Amortization of deferred stock-based compensation
     2,882       1,937       1,334  
   
Changes in assets and liabilities:
                        
     
Accounts receivable
     40,738       16,234       58,184  
     
Other current assets
     1,646       6,648       4,163  
     
Accounts payable
     (4,591 )     32       (8,687 )
     
Accrued compensation and related expenses
     1,495       (7,472 )     (19,794 )
     
Accrued income taxes
     6,598       4,555       (1,422 )
     
Other accrued liabilities
     (29,598 )     1,359       (44,127 )
     
Deferred revenues
     5,622       7,940       (28,054 )
     
Other liabilities
     4,650       4,953       305  
 
    
     
     
 
Net cash provided by operating activities
     202,145       164,277       93,094  
Cash flows from investing activities:
                        
 
(Increase) Decrease in restricted cash
     906       (2,227 )     (3,426 )
 
Purchases of available-for-sale cash investments
     (325,725 )     (234,754 )     (119,745 )
 
Maturities of available-for-sale cash investments
     153,805       43,857       82,497  
 
Sales of available-for-sale cash investments
     69,064       156,916       66,768  
 
Business combinations, net of cash acquired
     (13,900 )     (2,106 )     27,166  
 
Purchases of property, equipment and improvements
     (35,325 )     (40,476 )     (38,985 )
 
Proceeds from sale of fixed assets
     159       1,068       568  
 
Capitalized software development costs
     (27,964 )     (32,729 )     (35,783 )
 
(Increase) decrease in other assets
     288       327       (1,971 )
 
    
     
     
 
Net cash used for investing activities
     (178,692 )     (110,124 )     (22,911 )
Cash flows from financing activities:
                        
 
Minority Interest
     1       —       3,133  
 
Net proceeds from the issuance of common stock and reissuance of treasury stock
     55,914       23,641       28,401  
 
Purchases of treasury stock
     (30,883 )     (89,826 )     (106,930 )
 
    
     
     
 
Net cash provided by (used for) financing activities
     25,032       (66,185 )     (75,396 )
Effect of exchange rate changes on cash
     35,652       20,506       (7,582 )
 
    
     
     
 
Net increase (decrease) in cash and cash equivalents
     84,137       8,474       (12,795 )
Cash and cash equivalents, end of year
     315,404       231,267       222,793  
 
    
     
     
 
Cash investments, end of year
     258,389       155,913       120,367  
Total cash, cash equivalents and cash investments, end of year
   $ 573,793     $ 387,180     $ 343,160