Forward-Looking Statements

Transcription

1 The Unwired Enterprise Mark Wilson Vice President of Strategic Operations, Sybase 365 Security Research Associates 3 rd Annual Summer Growth Stock Conference in San Francisco July 30, 2007

2 Forward-Looking Statements Certain statements in this presentation concerning Sybase, Inc. and its prospects and future growth are forwardlooking 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 and Form 10-Q for quarter ended March 31, Sybase, the Sybase logo, AvantGo, Adaptive Server Enterprise (ASE), Adaptive Server Anywhere, ianywhere, ianywhere Solutions, Mirror Activator, Avaki EII, PowerDesigner, Replication Server, Afaria, SQL Anywhere, OneBridge, RFID Anywhere, Information Anywhere, and Answers Anywhere are trademarks or service marks of Sybase, Inc. or its subsidiaries. indicates trademark registration in the U.S. All other company and product names mentioned may be trademarks of the respective companies with which they are associated. 2

3 Sybase Today Sybase is the largest enterprise software company exclusively focused on managing and mobilizing information from the data center to any type of device, while providing the last-mile connection to the customer in a wired or unwired fashion 3

4 Why Sybase? Has Vision Differentiated technology for managing and delivering information anywhere anytime, to any type of device Market-leading positions in mobility and analytics Can Execute Seasoned management team R&D investments in technology innovation Strong cash flow from operations Financial strength to fund growth 4

5 The Unwired Enterprise Information Anywhere, Anytime 5

6 Business Segment Catalysts Business Segment Infrastructure Platform Group (IPG) Focus Sustain license revenue growth Catalysts IQ 12.7 and Data Integration Suite (2007) ASE 15.0 Shared Disk Clustering Option (2008) ianywhere Solutions, Inc. (ias) Accelerate revenue growth Investments in sales management and field operations Recent platform refresh Expanded pipeline and improved lead qualification Growth in transaction volume and ASPs Sybase 365 Expand operating margins and profitability Substantially increased messaging volume Growth and increased operating leverage in application messaging Cost synergies Cross-selling Sybase technology,including Sybase IQ, mfolio, AvantGo 6

7 Leadership In Core Markets Unwired Enterprise Trusted Infrastructure Intelligent Enterprise Information Anywhere Mobile Messaging Powers over 50% of Wall Street trades 20,000 enterprise customers worldwide ASE 15.0 Sybase IQ positioned as a challenger in 2006 DW Magic Quadrant Sybase Data Integration Suite #1 in mobile device management (Afaria) #1 small footprint DB (SQL Anywhere) First complete industry platform (Information Anywhere Suite) Originates 60% of inter-operator SMS domestic traffic Originates 50% of inter-operator MMS domestic traffic Global leader in messaging, with connections to 700+ MOs worldwide 7

8 Update on Sybase 365 Messaging Services Global leader in mobile messaging and content delivery 37 billion messages delivered across Sybase 365 network in 1H 07 Key new customers: China Mobile, NTT Docomo, Virgin Mobile International peering agreement with Belgacom expands the two-way reach of the Sybase 365 network Synergistic opportunities with mobile operators: mfolio for mobile content delivery To-be-released white-label AvantGo for mobile advertising and content management 1H 07 revenue of $63 million and non-gaap operating margin of 6% 8

9 Network- and Device-Agnostic Mobile Services MOBILE OPERATOR CUSTOMERS device NEW ECONOMY CUSTOMERS IMS WiMax CDMA Mobile IM Wi-Fi device SMS Video Messaging device GSM MMS Mesh GLOBAL 2000 CUSTOMERS Corporate device 9

10 Unwired Enterprise Convergence Information Management Customers Information Mobility Customers US NAVY Sybase 365 Customers 10

11 Industry Analysts on Sybase Strategy and Technology DATA MANAGEMENT While Oracle, IBM, and Microsoft have no immediate reason to feel nervous about all this, they may find themselves headed off in some sales opportunities in emerging geographic regions, especially in Asia/Pacific, and if Sybase is successful, they may find their products increasingly living along Sybase s in the future. 1 MOBILITY Sybase ianywhere is the 2005 Mobile Device Management Enterprise market share leader. Afaria has been the market leader since market sizing began. 2 Positioned in challengers quadrant in Gartner s 2H06 Magic Quadrant for Multichannel Access Gateways. 3 Source: 1 IDC, Sybase Announces ASE 15: Reinforcing its Foundation at the Great Wall, Carl W. Olofson, Doc #34082, Sept. 16, IDC Worldwide Mobile Device Management Enterprise Forecast and 2005 Vendor Shares, Doc # September, Gartner Inc., Magic Quadrant for Multichannel Access Gateways, 2H06, William Clark, Nick Jones, and Michael J. King, Oct 6,

12 Industry Analysts on Sybase Strategy and Technology MESSAGING SERVICES Sybase 365 will complement and greatly enhance the capabilities it already has in place with its AvantGo offerings. Further, it provides Sybase with a channel to offer data products and analytical services to a growing and established list of premiere companies currently serviced by Sybase 365 (e.g., AOL, Citibank, Yahoo, Sony, MSN). Finally, it provides a much-needed, long-term capability to offer mission-critical alerting services to the enterprise via its capacity to directly connect mobile users to business intelligence (BI) and similar operational needs built upon its database and analytics businesses, and on nearly any device over nearly any carrier. This is key to maintaining Sybase s edge in the mobile middleware market. 1 Source: 1 J. Gold Associates, Sybase s 365 Play, September 25,

13 Consistent Execution Revenue Growth Through Q207: 12 consecutive quarters of total revenue growth 1,100 1, Revenue ($millions) E (1) Service Revenue License Revenue (1) First Call analyst consensus estimate 13

14 Consistent Execution Profitability Through 2006: 5 consecutive years of annual non-gaap operating margin expansion Through Q207: 12 consecutive quarters of exceeding Street EPS expectations $180 22% Non-GAAP operating income ($ millions) $160 $140 $120 $100 $80 $ % 18% 16% 14% 12% 10% Non-GAAP operating margin Non-GAAP operating income Non-GAAP operating margin 14

15 1H 07 Highlights and FY Outlook IPG Segment ianywhere Solutions Sybase 365 Consolidated Sybase, Inc. 1H 07 Highlights $358M total revenue Non-GAAP operating income up 13% y/y 19% non-gaap operating margin 508 new ASE customers, up 11% y/y $81M total revenue Non-GAAP operating income up 13% y/y 15% non-gaap operating margin $63M total revenue 6% non-gaap operating margin 37 billion total messages delivered $475M total revenue, up 16% y/y Non-GAAP operating income up 16% y/y to $82M Cash and cash investments of $709M Cash flow from operations of $123M Repurchased $59M of SY shares 2007 Outlook 6% y/y license growth in FY 2007 Quarterly sequential revenue growth in 2H 07 10% total revenue growth Estimate FY 2007 total revenues of $130M and 6-8% non-gaap operating margin Expect to be non-gaap EPS accretive by Q407 Estimate FY 2007 revenue $1.015B-1.025B Estimate $1.56 non-gaap EPS Cash flow of $195M-205M Non-GAAP operating margin at least comparable to 20% reported in

16 Summary Visionary Largest enterprise software company exclusively focused on Unwiring the Enterprise Financial Strength Strong cash flow and ability to invest in strategic opportunities Global Scale Global execution arm driving our solutions across a broad customer base Differentiated technology Expanding platform combined with technology leadership 16

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18 Magic Quadrant Disclaimer The Magic Quadrant is copyrighted October, 2006 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. 18

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