The Unwired Enterprise
Mark Wilson
Vice President of Strategic Operations, Sybase 365
Security Research Associates
3
rdAnnual Summer Growth Stock Conference in San Francisco
Forward-Looking Statements
Certain statements in this presentation 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 and Form 10-Q for quarter ended March 31, 2007. 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.
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
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
The Unwired Enterprise
Business Segment Catalysts
Substantially increased messaging volume
Growth and increased operating leverage in
application messaging
Cost synergies
Cross-selling Sybase technology,including
Sybase IQ, mFolio, AvantGo
Expand operating
margins and profitability
Sybase 365
Investments in sales management and field
operations
Recent platform refresh
Expanded pipeline and improved lead
qualification
Growth in transaction volume and ASPs
Accelerate revenue
growth
iAnywhere Solutions,
Inc. (iAS)
IQ 12.7 and Data Integration Suite (2007)
ASE 15.0 Shared Disk Clustering Option (2008)
Sustain license revenue
growth
Infrastructure
Platform Group (IPG)
Catalysts
Focus
Leadership In Core Markets
Intelligent Enterprise Information Anywhere Mobile Messaging Trusted InfrastructureUnwired Enterprise
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 worldwideUpdate 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
MOBILE OPERATOR
CUSTOMERS
Network- and Device-Agnostic
Mobile Services
GSM
CDMA
IMS
Wi-Fi
Mesh
Corporate
MMS
SMS
Mobile IM
Video Messaging
NEW ECONOMY
CUSTOMERS
device
device
device
WiMax
GLOBAL 2000
CUSTOMERS
Unwired Enterprise Convergence
US NAVY Information Management Customers Information Mobility CustomersIndustry 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.”
1MOBILITY
“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.
3Source:
1IDC, “Sybase Announces ASE 15: Reinforcing its Foundation at the Great Wall,” Carl W. Olofson, Doc #34082, Sept. 16, 2005.
2IDC “Worldwide Mobile Device Management Enterprise 2006-2010 Forecast and 2005 Vendor Shares”, Doc #203353 September, 2006. 3Gartner Inc., “Magic Quadrant for Multichannel Access Gateways, 2H06,” William Clark, Nick Jones, and Michael J. King, Oct 6, 2006.
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
.”
1Source:
100 200 300 400 500 600 700 800 900 1,000 1,100 2003 2004 2005 2006 2007E (1) R e v e nue ( $ m il li ons )
Service Revenue License Revenue
Consistent Execution
Revenue Growth
Through Q207: 12 consecutive quarters of total revenue growth
$60 $80 $100 $120 $140 $160 $180 2001 2002 2003 2004 2005 2006 N o n -G A A P o p e ra ti n g in c o m e ( $ m illio n s ) 10% 12% 14% 16% 18% 20% 22% N o n-G A A P ope ra ting m a rg in
Consistent Execution
Profitability
Through 2006: 5 consecutive years of annual non-GAAP operating margin expansion
1H’07 Highlights and FY Outlook
2007 Outlook
1H’07 Highlights
Segment
Estimate FY 2007 total revenues of $130M and 6-8% non-GAAP operating margin
Expect to be non-GAAP EPS accretive by Q407
$63M total revenue
6% non-GAAP operating margin
37 billion total messages delivered Sybase 365
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 2006
$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 Consolidated
Sybase, Inc.
$81M total revenue
Non-GAAP operating income up 13% y/y
15% non-GAAP operating margin
$358M total revenue
Non-GAAP operating income up 13% y/y
19% non-GAAP operating margin
508 new ASE customers, up 11% y/y
Quarterly sequential revenue growth in 2H’07
10% total revenue growth iAnywhere
Solutions
6% y/y license growth in FY 2007 IPG
