EPS Exceeds First Call Consensus Estimate
DUBLIN, Calif., April 26 /PRNewswire-FirstCall/ -- Sybase, Inc. (NYSE:
SY), a leading provider of enterprise infrastructure and mobile software,
today reported financial results for the first quarter ended March 31,
2007.
Highlights:
* Total revenues increased 18% year over year to $230.0 million
* Total database license revenues grew 17% year over year
* Over 17 billion total messages delivered across the Sybase 365
network
* Cash flow from operations of $69.6 million
* Pro forma operating income increased 19% year over year; GAAP up 13%
* Pro forma fully diluted EPS of $0.27 exceeded First Call consensus
estimate of $0.26; GAAP EPS of $0.16
2007 First Quarter Results
Total revenue increased 18% to $230.0 million from $195.0 million in
the first quarter of 2006. The company reported total license revenue of
$69.4 million, services revenue of $129.7 million, and messaging revenue of
$31.0 million.
Pro forma operating income for the quarter increased 19% year over year
to $33.9 million, representing a 15% operating margin.
Pro forma net income for the quarter increased 9% to $24.9 million, or
earnings per diluted share (EPS) of $0.27. This compares with pro forma net
income of $22.7 million, or EPS of $0.25 for the first quarter of 2006.
Operating income calculated in accordance with generally accepted
accounting principles (GAAP) for the quarter increased 13% year over year
to $21.4 million, representing a 9% operating margin.
GAAP net income was $15.1 million, or GAAP EPS of $0.16, for the
quarter. This compares with GAAP net income of $17.3 million, or GAAP EPS
of $0.19, for the 2006 first quarter. Included in the 2007 first quarter
GAAP-based results is the impact of $2.8 million for the amortization of
purchased intangibles related to the acquisition of Mobile 365.
Pro forma amounts exclude the amortization of certain purchased
intangibles, stock-based compensation, and restructuring costs, and the tax
effect of these and related items. Accompanying this release is a
reconciliation of pro forma and GAAP amounts for the 2007 first quarter.
"We are pleased with the ongoing strength of our overall database
license revenues, which grew 17% year over year," stated John Chen,
chairman, CEO, and president of Sybase. "This represents our fourth
consecutive quarter of double-digit growth in our database business and
reflects market share gains driven by robust demand for our Adaptive Server
Enterprise 15.0 flagship database and our IQ analytics server.
"We are also very encouraged by our first full quarter of mobile
messaging revenue, which exceeded our expectations and successfully
attracted new, high- profile customers like China Mobile, NTT Docomo, and
Virgin Mobile.
"We are confident that our solid balance sheet, compelling product
portfolio, and go-to-market strategy position us well to achieve our
revenue, earnings, and cash flow targets for the year," concluded Mr. Chen.
Balance Sheet and Other Data
At March 31, 2007, Sybase reported $698.7 million in cash and cash
investments, including restricted cash of $6.0 million. In the first
quarter, the company generated $69.6 million in cash flow from operations.
Sybase repurchased $18.6 million worth of its stock during the 2007
first quarter. As of March 31, 2007, $231.2 million remained authorized in
the company's current share repurchase program.
Days sales outstanding (DSO) for the 2007 first quarter was 75.
Forward Guidance
For the second quarter ending June 30, 2007, management anticipates
revenues ranging from $245.0 million to $250.0 million. Pro forma fully
diluted EPS for the second quarter is expected to range from $0.32 to
$0.36. GAAP EPS for the second quarter is expected to range from $0.23 to
$0.27, which includes $2.7 million for the amortization of intangibles
related to the acquisition of Mobile 365 in November 2006.
For full-year 2007, management reiterates its most recent guidance for
revenue of approximately $1.025 billion and fully diluted pro forma EPS of
approximately $1.52. GAAP EPS is anticipated at approximately $1.12, which
includes $10.9 million for the amortization of intangibles related to the
acquisition of Mobile 365.
Management also reiterates its most recent guidance for full-year 2007
cash flow from operations in the range of $190 million to $200 million.
Accompanying this release is a reconciliation of projected pro forma
and GAAP amounts for the 2007 second quarter and full year.
2007 First Quarter Company Highlights
* Announced that the Sybase(R) Adaptive Server(R) Enterprise (ASE)
database and the Sybase IQ analytics server were selected by leading
financial, federal, telecommunications and retail organizations in
Asia, including Samsung Securities, the South Korean Ministry of
Government Administration and Home Affairs, China's Guang Dong
Telecom, and China's Wang Fujing Department Store Group, to deliver
real-time analytics and enterprise data management.
* Launched Bridge Concierge Go, a one-stop mobile travel portal
covering eight markets in Asia, in conjunction with Bridge Mobile
Alliance. Bridge Concierge Go is based on Sybase's AvantGo(R) mobile
Internet service.
* Expanded the capabilities of Information Anywhere(R) Suite to
include instant messaging and presence with the launch of
OneBridge(R) Messenger.
* Launched a new managed service offering to more than 4.6 million
Virgin Mobile USA customers based on the Sybase 365 mfolio(TM)
mobile application.
* Announced a partnership between Sybase 365 and Belgacom
International Carrier Services in a new international SMS peering
agreement.
* Launched the Wireless Development Center in Techno Park, Singapore
to focus on the development of new technologies in the areas of
RFID, embedded software and mobile middleware for the enterprise.
* Announced that Sybase 365 has been selected by five leading mobile
operators in the Pacific Islands to provide domestic and
international messaging connectivity in the region.
* Launched the Data Tools Platform 1.0, an Eclipse Foundation open
source project spearheaded by Sybase, Actuate and IBM for developing
data-centric applications in the Eclipse environment.
* Delivered SQL Anywhere(R) 10 for Mac OS X on Intel, providing the
first data management and synchronization solution for Intel-based
Macs.
Conference Call and Webcast Information
The Sybase 2007 first 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, April 26, 2007. 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 May 3, 2007. To access the replay, please dial (888)
203-1112 for domestic access and (719) 457-0820 for international callers;
the access code for the telephone replay is #1798432. Additionally, the
archived Webcast will be available through July 18, 2007 at
http://www.sybase.com/about_sybase/investorrelations.
About Sybase, Inc.
Sybase is the largest global enterprise software company exclusively
focused on managing and mobilizing information from the data center to the
point of action. Sybase provides open, cross-platform solutions that
securely deliver information anytime, anywhere, enabling customers to
create an information edge. The world's most critical data in commerce,
finance, government, healthcare, and defense runs on Sybase. For more
information, visit the Sybase Website at http://www.sybase.com.
Forward-Looking Statements
Certain statements in this release concerning Sybase, Inc. and its
prospects and future growth are forward-looking and involve a number of
uncertainties and risks. Factors that could cause actual events or results
to differ materially from those suggested by these forward-looking
statements include, but are not limited to, the performance of the global
economy and growth in software industry sales; market acceptance of the
company's products and services; customer and industry analyst perception
of the company and its technology vision and future prospects; the success
of certain business combinations engaged in by the company or by
competitors; political unrest or acts of war; possible disruptive effects
of organizational or personnel changes; and other factors described in
Sybase, Inc.'s reports filed with the U.S. Securities and Exchange
Commission, including its annual report on Form 10-K for the year ended
December 31, 2006.
Sybase, Adaptive Server Enterprise (ASE), AvantGo, Information
Anywhere, mfolio, OneBridge, SQL Anywhere, and Sybase 365 are trademarks of
Sybase, Inc., or its subsidiaries. All other names may be trademarks of the
companies with which they are associated.
SYBASE, INC.
RECONCILIATION TO PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(1)
(UNAUDITED)
(In thousands, Three Months Ended Three Months Ended
except per March 31, 2007 March 31, 2006
share data) -------------------------- --------------------------
Pro forma Pro forma
Adjustments Pro Adjustments Pro
GAAP (2) forma GAAP (2) forma
-------------------------- --------------------------
Revenues:
License fees $69,365 -- $69,365 $66,888 -- $66,888
Services 129,651 -- 129,651 128,120 -- 128,120
Messaging 31,021 -- 31,021 -- -- --
---------------- -------- ---------------- ---------
Total revenues 230,037 -- 230,037 195,008 -- 195,008
Costs and expenses:
Cost of license fees 12,753 (2,405)a 10,348 12,792 (2,447)a 10,345
Cost of services 38,742 (339)b 38,403 38,352 (680)b 37,672
Cost of messaging 18,889 (1,102)a,b 17,787 -- -- --
Sales and marketing 64,575 (1,266)b 63,309 61,355 (996)b 60,359
Product development
and engineering 38,753 (686)b 38,067 36,997 (593)b 36,404
General and
administrative 31,496 (3,273)b 28,223 24,987 (3,156)b 21,831
Amortization of
other purchased
intangibles 3,410 (3,410)a -- 1,546 (1,546)a --
Cost of restructure 4 (4)c -- 34 (34)c --
---------------- -------- ---------------- ---------
Total costs
and expenses 208,622 (12,485) 196,137 176,063 (9,452) 166,611
---------------- -------- ---------------- ---------
Operating income 21,415 12,485 33,900 18,945 9,452 28,397
Interest income
and expense
and other, net 5,005 -- 5,005 6,058 -- 6,058
Minority interest (20) -- (20) -- -- --
---------------- -------- ---------------- ---------
Income before
income taxes 26,400 12,485 38,885 25,003 9,452 34,455
Provision for
income taxes 11,252 2,747 d 13,999 7,751 3,964 d 11,715
---------------- -------- ---------------- ---------
Net income $15,148 $9,738 $24,886 $17,252 $5,488 $22,740
================ ======== ================ =========
Basic net income
per share $0.17 $0.10 $0.27 $0.19 $0.06 $0.25
================ ======== ================ =========
Shares used in
computing basic net
income per share 91,149 91,149 89,637 89,637
================ ======== ================ =========
Diluted net income
per share $0.16 $0.11 $0.27 $0.19 $0.06 $0.25
================ ======== ================ =========
Shares used in
computing diluted
net income per share 93,609 93,609 92,041 92,041
================ ======== ================ =========
(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, stock-based
compensation, the cost of restructuring, and the tax effects of these
items 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) stock-based compensation expense; (c) cost
of restructuring charges; (d) income tax effect of proforma
adjustments.
SYBASE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and March 31, December 31,
per share data) 2007 2006
------------ ------------
(Unaudited)
Current assets:
Cash and cash equivalents $413,664 $355,303
Short-term investments 247,768 269,612
------------ ------------
Total cash, cash equivalents and
short-term cash investments 661,432 624,915
Restricted cash 5,958 6,014
Accounts receivable, net 191,145 218,016
Deferred income taxes 6,231 6,224
Other current assets 24,828 16,392
------------ ------------
Total current assets 889,594 871,561
Long-term cash investments 31,338 12,781
Property, equipment and improvements, net 64,143 66,458
Deferred income taxes 37,865 36,069
Capitalized software, net 71,394 71,179
Goodwill, net 539,680 540,303
Other purchased intangibles, net 144,820 149,648
Other assets 39,995 39,551
------------ ------------
Total assets $1,818,829 $1,787,550
============ ============
Current liabilities:
Accounts payable $24,651 $23,439
Accrued compensation and related expenses 44,730 59,748
Accrued income taxes 7,846 31,364
Other accrued liabilities 94,714 108,436
Deferred revenue 230,751 193,431
------------ ------------
Total current liabilities 402,692 416,418
Other liabilities 43,769 44,428
Deferred income taxes 14,569 14,448
Long-term tax liability 25,797 --
Long-term deferred revenue 5,444 3,965
Minority interest 5,179 5,160
Convertible subordinated notes 460,000 460,000
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
(2006 - 105,337,362) 105 105
Additional paid-in capital 983,422 977,672
Accumulated earnings 107,628 92,817
Other comprehensive income 44,071 40,850
Less: Cost of treasury stock (13,966,698
shares and 2005 - 14,055,557) (273,847) (268,313)
------------ ------------
Total stockholders' equity 861,379 843,131
------------ ------------
Total liabilities and stockholders'
equity $1,818,829 $1,787,550
============ ============
SYBASE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
PROFORMA WITHOUT PURCHASE ACCOUNTING, COST OF RESTRUCTURE, STOCK COMPENSATION
EXPENSE, AND ASSOCIATED INCOME TAX EFFECT
(UNAUDITED)
Three Months Ended March 31,
-----------------------------
(In thousands, except per share data) 2007 2006
------------ ------------
Revenues:
License fees $69,365 $66,888
Services 129,651 128,120
Messaging 31,021 --
------------ ------------
Total revenues 230,037 195,008
Costs and expenses:
Cost of license fees 10,348 10,345
Cost of services 38,403 37,672
Cost of messaging 17,787 --
Sales and marketing 63,309 60,359
Product development and engineering 38,067 36,404
General and administrative 28,223 21,831
------------ ------------
Total costs and expenses 196,137 166,611
------------ ------------
Operating income 33,900 28,397
Interest income and expense and other, net 5,005 6,058
Minority interest (20) --
------------ ------------
Income before income taxes 38,885 34,455
Provision for income taxes 13,999 11,715
------------ ------------
Net income $24,886 $22,740
============ ============
Basic net income per share $0.27 $0.25
============ ============
Shares used in computing basic net
income per share 91,149 89,637
============ ============
Diluted net income per share $0.27 $0.25
============ ============
Shares used in computing diluted net
income per share 93,609 92,041
============ ============
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., Extended Systems, Inc., Solonde Solutions AG, and Mobile
365, Inc. and other purchased intangibles. Such purchase accounting
adjustments would include amortization of developed technology,
amortization of intangibles, and related adjustments for income tax
provision. The pro forma statement of operations also excludes stock
compensation expense and restructuring costs 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 March 31,
------------------------------
(In thousands, except per share data) 2007 2006
----------- -----------
Revenues:
License fees $69,365 $66,888
Services 129,651 128,120
Messaging 31,021 --
----------- -----------
Total revenues 230,037 195,008
Costs and expenses:
Cost of license fees 12,753 12,792
Cost of services 38,742 38,352
Cost of messaging 18,889 --
Sales and marketing 64,575 61,355
Product development and engineering 38,753 36,997
General and administrative 31,496 24,987
Amortization of other purchased intangibles 3,410 1,546
Cost of restructure 4 34
----------- -----------
Total costs and expenses 208,622 176,063
----------- -----------
Operating income 21,415 18,945
Interest income and expense and other, net 5,005 6,058
Minority interest (20) --
----------- -----------
Income before income taxes 26,400 25,003
Provision for income taxes 11,252 7,751
----------- -----------
Net income $15,148 $17,252
=========== ===========
Basic net income per share $0.17 $0.19
=========== ===========
Shares used in computing basic net income
per share 91,149 89,637
=========== ===========
Diluted net income per share $0.16 $0.19
=========== ===========
Shares used in computing diluted net income
per share 93,609 92,041
=========== ===========
SYBASE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
---------------------
(Dollars in thousands) 2007 2006
--------------------------------------------- --------- ---------
Cash and cash equivalents, beginning of year $355,303 $398,741
Cash flows from operating activities:
Net income 15,148 17,252
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 21,810 18,012
Minority interest in income of subsidiaries 20 --
Gain on disposal of assets (11) (381)
Deferred income taxes (1,682) (1,329)
Stock-based compensation - restricted stock 2,103 1,956
Stock-based compensation - all other 3,647 3,469
Excess tax benefit from stock-based
compensation plans (2,201) --
Amortization of note issuance costs 492 492
Changes in assets and liabilities:
Accounts receivable 24,331 31,048
Other current assets (7,700) (6,273)
Other assets - operating (919) (1,589)
Accounts payable 1,212 4
Accrued compensation and related expenses (15,033) (14,427)
Accrued income taxes 2,183 (3,678)
Other accrued liabilities (12,007) (8,851)
Deferred revenues 38,799 37,083
Other liabilities (551) 582
--------- ---------
Net cash provided by operating activities 69,641 73,370
Cash flows from investing activities:
Decrease in restricted cash 56 66
Purchases of available-for-sale cash
investments (120,761) (171,467)
Maturities of available-for-sale cash
investments 48,400 101,297
Sales of available-for-sale cash investments 75,894 134,618
Business combinations, net of cash acquired (1,501) (23)
Purchases of property, equipment and
improvements (4,466) (4,622)
Proceeds from sale of property, equipment,
and improvements 34 2
Capitalized software development costs (8,438) (8,542)
(Increase) Decrease in other assets
- investing (18) 1
--------- ---------
Net cash provided by (used for) investing
activities (10,800) 51,330
Cash flows from financing activities:
Repayments of long-term obligations (15) (14)
Payments on capital lease (392) (77)
Net proceeds from the issuance of common
stock and reissuance of treasury stock 12,716 5,699
Purchases of treasury stock (18,588) (24,665)
Excess tax benefit from stock-based
compensation plans 2,201 --
--------- ---------
Net cash used for financing activities (4,078) (19,057)
Effect of exchange rate changes on cash 3,598 1,519
--------- ---------
Net increase in cash and cash equivalents 58,361 107,162
--------- ---------
Cash and cash equivalents, end of period 413,664 505,903
Cash investments, end of period 279,106 396,562
--------- ---------
Total cash, cash equivalents and cash
investments, end of period $692,770 $902,465
========= =========
SYBASE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS BY SEGMENT
PROFORMA WITHOUT PURCHASE ACCOUNTING, COST OF RESTRUCTURE, STOCK COMPENSATION
EXPENSE, AND ASSOCIATED INCOME TAX EFFECT
FOR THE THREE MONTHS ENDED MARCH 31, 2007
(UNAUDITED)
(In thousands, except Infra-
per share data) structure Consoli-
Platform iAnywhere Sybase Elimi- dated
Group Solutions 365 nations Total
--------- --------- --------- --------- ---------
Revenues:
License fees
Infrastructure $48,315 $21 $14 $-- $48,350
Mobile and Embedded 6,639 14,376 -- -- 21,015
--------- --------- --------- --------- ---------
Subtotal license
fees 54,954 14,397 14 -- 69,365
Intersegment license
revenues 32 5,536 -- (5,568) --
--------- --------- --------- --------- ---------
Total license fees 54,986 19,933 14 (5,568) 69,365
Services
Direct service
revenue 118,383 11,268 -- -- 129,651
Intersegment service
revenues 27 6,783 -- (6,810) --
--------- --------- --------- --------- ---------
Total services 118,410 18,051 -- (6,810) 129,651
Messaging -- -- 31,021 31,021
--------- --------- --------- --------- ---------
Total revenues 173,396 37,984 31,035 (12,378) 230,037
Total allocated costs
and expenses 144,118 34,110 29,977 (12,378) 195,827
--------- --------- --------- --------- ---------
Operating income before
unallocated costs $29,278 $3,874 $1,058 $-- $34,210
Other unallocated costs 310
---------
Operating income after
unallocated costs 33,900
Interest income and
expense and other, net 5,005
Minority interest (20)
---------
Income before income taxes 38,885
Provision for income taxes 13,999
---------
Net income $24,886
=========
Basic net income per share $0.27
=========
Shares used in computing
basic net income per share 91,149
=========
Diluted net income per share $0.27
=========
Shares used in computing
diluted net income per share 93,609
=========
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., Extended Systems, Inc., Solonde Solutions AG, and Mobile
365, Inc. and other purchased intangibles. Such purchase accounting
adjustments would include amortization of developed technology,
amortization of intangibles, and related adjustments for income tax
provision. The pro forma statement of operations also excludes stock
compensation expense and restructuring costs 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 MARCH 31, 2007
(UNAUDITED)
(In thousands, except Infra-
per share data) structure Consoli-
Platform iAnywhere Sybase Elimi- dated
Group Solutions 365 nations Total
Revenues: -------- -------- -------- -------- --------
License fees
Infrastructure $48,315 $21 $14 $-- $48,350
Mobile and Embedded 6,639 14,376 -- -- 21,015
-------- -------- -------- -------- --------
Subtotal license fees 54,954 14,397 14 -- 69,365
Intersegment license
revenues 32 5,536 -- (5,568) --
-------- -------- -------- -------- --------
Total license fees 54,986 19,933 14 (5,568) 69,365
Services
Direct service revenue 118,383 11,268 -- -- 129,651
Intersegment service
revenues 27 6,783 -- (6,810) --
-------- -------- -------- -------- --------
Total services 118,410 18,051 -- (6,810) 129,651
Messaging -- -- 31,021 -- 31,021
-------- -------- -------- -------- --------
Total revenues 173,396 37,984 31,035 (12,378) 230,037
Total allocated costs
and expenses before cost
of restructure and
amortization of other
purchased intangibles and
purchased technology 144,118 34,110 29,977 (12,378) 195,827
-------- -------- -------- -------- --------
Operating income before
cost of restructure and
amortization of other
purchased intangibles and
purchased technology 29,278 3,874 1,058 -- 34,210
Cost of restructure
- 2007 Activity 4 -- -- -- 4
Amortization of other
purchased intangibles 527 1,046 1,837 -- 3,410
Amortization of
purchased technology 402 2,003 916 -- 3,321
-------- -------- -------- -------- --------
Operating income (loss)
before unallocated costs $28,345 $825 $(1,695) $-- $27,475
Other unallocated costs 6,060
--------
Operating income after
unallocated costs 21,415
Interest income and
expense and other, net 5,005
Minority interest (20)
--------
Income before income taxes 26,400
Provision for income taxes 11,252
--------
Net income $15,148
========
Basic net income per share $0.17
========
Shares used in computing
basic net income per share 91,149
========
Diluted net income per share $0.16
========
Shares used in computing
diluted net income per share 93,609
========
SYBASE, INC.
Reconciliation of GAAP-based EPS to pro forma EPS
for the three months ended June 30, 2007
(unaudited)
Pro forma EPS $0.32 $0.36
Amortization of purchased intangibles (0.07) (0.07)
Amortization of stock compensation expense (0.06) (0.06)
Income tax effect of above adjustments 0.05 0.05
Income tax effect (0.01) (0.01)
--------- ---------
GAAP - based EPS $0.23 $0.27
========= =========
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 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) 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.
Reconciliation of GAAP-based EPS to pro forma EPS
for the twelve months ended December 31, 2007
(unaudited)
Pro forma EPS $1.52
Amortization of purchased intangibles (0.28)
Amortization of stock compensation expense (0.26)
Income tax effect of above adjustments 0.19
Income tax effect (0.05)
---------
GAAP - based EPS $1.12
=========
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 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) 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.
SOURCE Sybase, Inc.
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Related links:
http://www.sybase.com/
CONTACT:
Financial Inquiries, Investor Relations,
Lynne Farris, +1-925-236-8797, lynne.farris@sybase.com, Charlie
Chen, +1-925-236-6015, charles.chen@sybase.com, or Press
Inquiries, Public Relations, Lorna Fernandes, +1-925-236-4107,
lorna.fernandes@sybase.com, all of Sybase, Inc.
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