DUBLIN, Calif., Jan. 26 /PRNewswire-FirstCall/ -- Sybase, Inc. , 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 http://www.fulldisclosure.com/ or Sybase's Website at http://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(R) and iAnywhere(R) 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(R), a pioneer in mobile application software for the enterprise. http://www.sybase.com/detail?id=1038178 * iAnywhere launched Advantage Database Server(TM) 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(R) 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(R), 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(TM) and iAnywhere products SQL Anywhere Studio(R), M-Business Anywhere(TM), Pylon Anywhere(TM), 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(TM) 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) (In thousands, Three Months Ended Three Months Ended except per share December 31, 2005 December 31, 2004 data) Pro forma Pro forma Adjustments Pro Adjustments Pro GAAP (2) forma GAAP (2) 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) (In thousands, Twelve Months Ended Twelve Months Ended except per December 31, 2005 December 31, 2004 share data) Pro forma Pro forma Adjustments Pro Adjustments Pro GAAP (2) forma GAAP (2) 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 (In thousands, except share and December 31, December 31, per share data) 2005 2004 (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 Twelve Months Ended (In thousands, except December 31, December 31, 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 Twelve Months Ended (In thousands, except December 31, December 31, 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) (In thousands, except Infrastructure per share data) Platform iAnywhere Consolidated Revenues: Group Solutions Eliminations Total 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 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. CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT PROFORMA WITHOUT PURCHASE ACCOUNTING, COST OF RESTRUCTURE, AND STOCK COMPENSATION EXPENSE FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2005 (UNAUDITED) (In thousands, except per share data) Infrastructure Platform iAnywhere Consolidated Revenues: Group Solutions Eliminations Total 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 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. CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT FOR THE THREE MONTHS ENDED DECEMBER 31, 2005 (UNAUDITED) (In thousands, except per share data) Infrastructure Platform iAnywhere Consolidated Revenues: Group Solutions Eliminations Total 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) (In thousands, except per share data) Infrastructure Platform iAnywhere Consolidated Revenues: Group Solutions Eliminations Total 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

First Call Analyst:
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CONTACT: Financial Inquiries, Lynne Farris of Sybase Investor Relations,
+1-925-236-8797, or lfarris@sybase.com; or Press Inquiries, Heather Peterson
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