##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2007
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 FOR THE TRANSITION PERIOD FROM       TO
 COMMISSION FILE NUMBER: 1-16493
 SYBASE, INC.
 
  Delaware
    
    94-2951005(State of Incorporation)
    
    (I.R.S. Employer Identification No.)
  
   
  
  þ o
  þ o o
 o þ




---



##### 



PageForward-Looking Statements
    
    
    2Part I: Financial InformationItem 1: Financial Statements (Unaudited)Condensed Consolidated Balance Sheets as of September 30, 2007 and December 31, 2006
    
    
    3Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2007 and 2006
    
    
    4Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2007 and 2006
    
    
    5Notes to Condensed Consolidated Financial Statements
    
    
    6Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    15Item 3: Quantitative and Qualitative Disclosures of Market Risk
    
    
    26Item 4: Controls and Procedures
    
    
    26Part II: Other InformationItem 1: Legal Proceedings
    
    
    27Item 1 (A) : Risk Factors
    
    
    27Item 2: Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    35Item 4: Submission of Matters to a Vote of Security Holders
    
    
    36Item 5: Other Information
    
    
    36Item 6: Exhibits
    
    
    36Signatures
    
    
    37Exhibit IndexEXHIBIT 12EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32
  1




---



##### Table of Contents



www.sec.gov
 www.sybase.com
  2




---



##### Table of Contents



PART I: FINANCIAL INFORMATION
 
 ITEM 1: FINANCIAL STATEMENTS
 
   September 30,2007
    
    
    December 31,(In thousands, except share and per share data)
    
    (Unaudited)
    
    
    2006Current assets:Cash and cash equivalents
    
    $
    453,094
    
    
    $
    355,303Short-term cash investments
    
    
    238,802
    
    
    
    269,612Total cash, cash equivalents and short-term cash investments
    
    
    691,896
    
    
    
    624,915Restricted cash
    
    
    6,109
    
    
    
    6,014Accounts receivable, net
    
    
    211,398
    
    
    
    218,016Deferred income taxes
    
    
    6,283
    
    
    
    6,224Prepaid expenses and other current assets
    
    
    29,151
    
    
    
    16,392Total current assets
    
    
    944,837
    
    
    
    871,561Long-term cash investments
    
    
    19,253
    
    
    
    12,781Property, equipment and improvements, net
    
    
    64,283
    
    
    
    66,458Deferred income taxes
    
    
    39,502
    
    
    
    36,069Capitalized software, net
    
    
    74,273
    
    
    
    71,179Goodwill
    
    
    544,401
    
    
    
    540,303Other purchased intangibles, net
    
    
    136,547
    
    
    
    149,648Other assets
    
    
    36,172
    
    
    
    39,551Total assets
    
    $
    1,859,268
    
    
    $
    1,787,550Current liabilities:Accounts payable
    
    $
    30,079
    
    
    $
    23,439Accrued compensation and related expenses
    
    
    59,462
    
    
    
    59,748Accrued income taxes
    
    
    19,543
    
    
    
    31,364Other accrued liabilities
    
    
    103,415
    
    
    
    108,436Deferred revenue
    
    
    194,427
    
    
    
    193,431Total current liabilities
    
    
    406,926
    
    
    
    416,418Other liabilities
    
    
    44,560
    
    
    
    44,428Deferred income taxes
    
    
    14,368
    
    
    
    14,448Long-term tax liability
    
    
    25,796
    
    
    
    Long-term deferred revenue
    
    
    4,826
    
    
    
    3,965Minority interest
    
    
    5,179
    
    
    
    5,160Convertible subordinated notes
    
    
    460,000
    
    
    
    460,000Commitments and contingent liabilities
Stockholders equity: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
and 88,912,202 outstanding (2006-105,337,362 shares issued and 91,281,805 outstanding)
    
    
    105
    
    
    
    105Additional paid-in capital
    
    
    996,191
    
    
    
    977,672Accumulated earnings
    
    
    167,785
    
    
    
    92,817Accumulated other comprehensive income
    
    
    71,330
    
    
    
    40,850Cost of 16,425,160 shares of treasury stock (2006-14,055,557 shares)
    
    
    (337,798
    )
    
    
    (268,313
    )Total stockholders equity
    
    
    897,613
    
    
    
    843,131Total liabilities and stockholders equity
    
    $
    1,859,268
    
    
    $
    1,787,550
  3




---



##### Table of Contents



Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(Dollars in thousands, except per share data)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Revenues:License fees
    
    $
    85,141
    
    
    $
    76,338
    
    
    $
    231,941
    
    
    $
    226,367Services
    
    
    135,838
    
    
    
    132,794
    
    
    
    400,719
    
    
    
    393,332Messaging
    
    
    34,287
    
    
    
    
    
    
    
    97,666
    
    
    
    Total revenues
    
    
    255,266
    
    
    
    209,132
    
    
    
    730,326
    
    
    
    619,699Costs and expenses:Cost of license fees
    
    
    12,667
    
    
    
    12,160
    
    
    
    38,503
    
    
    
    36,882Cost of services
    
    
    38,684
    
    
    
    37,681
    
    
    
    116,965
    
    
    
    114,371Cost of messaging
    
    
    21,428
    
    
    
    
    
    
    
    59,223Sales and marketing
    
    
    64,415
    
    
    
    62,019
    
    
    
    193,906
    
    
    
    191,207Product development and engineering
    
    
    38,739
    
    
    
    37,327
    
    
    
    114,412
    
    
    
    111,867General and administrative
    
    
    31,231
    
    
    
    26,103
    
    
    
    95,407
    
    
    
    77,037Amortization of other purchased intangibles
    
    
    3,445
    
    
    
    1,573
    
    
    
    10,291
    
    
    
    4,671Cost (Reversal) of restructure
    
    
    17
    
    
    
    39
    
    
    
    (30
    )
    
    
    139Total costs and expenses
    
    
    210,626
    
    
    
    176,902
    
    
    
    628,677
    
    
    
    536,174Operating income
    
    
    44,640
    
    
    
    32,230
    
    
    
    101,649
    
    
    
    83,525Interest income
    
    
    9,041
    
    
    
    10,910
    
    
    
    24,951
    
    
    
    29,702Interest expense and other, net
    
    
    (3,331
    )
    
    
    (2,974
    )
    
    
    (9,114
    )
    
    
    (8,491
    )Income before income taxes
    
    
    50,350
    
    
    
    40,166
    
    
    
    117,486
    
    
    
    104,736Provision for income taxes
    
    
    16,220
    
    
    
    15,081
    
    
    
    42,180
    
    
    
    36,066Net income
    
    $
    34,130
    
    
    $
    25,085
    
    
    $
    75,306
    
    
    $
    68,670Basic net income per share
    
    $
    0.38
    
    
    $
    0.28
    
    
    $
    0.83
    
    
    $
    0.77Shares used in computing basic net income per share
    
    
    89,655
    
    
    
    89,056
    
    
    
    90,565
    
    
    
    89,269Diluted net income per share
    
    $
    0.37
    
    
    $
    0.27
    
    
    $
    0.81
    
    
    $
    0.75Shares used in computing diluted net income per share
    
    
    91,714
    
    
    
    91,498
    
    
    
    92,749
    
    
    
    91,636
  4




---



##### Table of Contents



Nine Months EndedSeptember 30,(Dollars in thousands)
    
    2007
    
    
    2006Cash flows from operating activities:Net income
    
    
    75,306
    
    
    
    68,670Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    64,802
    
    
    
    52,258Minority interest in income of subsidiaries
    
    
    20
    
    
    
    Loss on disposal of assets
    
    
    20
    
    
    
    829Deferred income taxes
    
    
    (3,541
    )
    
    
    (11,377
    )Stock-based compensation  restricted stock
    
    
    6,554
    
    
    
    5,833Stock-based compensation  all other
    
    
    10,467
    
    
    
    9,849Excess tax benefit from stock-based compensation plans
    
    
    (3,171
    )
    
    
    Amortization of note issuance costs
    
    
    1,477
    
    
    
    1,477Changes in assets and liabilities:Accounts receivable
    
    
    11,956
    
    
    
    38,481Other current assets
    
    
    (3,846
    )
    
    
    (2,055
    )Other assets  operating
    
    
    2,635
    
    
    
    (2,600
    )Accounts payable
    
    
    6,573
    
    
    
    3,806Accrued compensation and related expenses
    
    
    (301
    )
    
    
    (1,203
    )Accrued income taxes
    
    
    13,313
    
    
    
    20,219Other accrued liabilities
    
    
    (13,027
    )
    
    
    (19,043
    )Deferred revenues
    
    
    1,857
    
    
    
    (3,125
    )Other liabilities
    
    
    (541
    )
    
    
    1,863Net cash provided by operating activities
    
    
    170,553
    
    
    
    163,882Cash flows from investing activities:Increase in restricted cash
    
    
    (95
    )
    
    
    (193
    )Purchases of available-for-sale cash investments
    
    
    (231,304
    )
    
    
    (364,397
    )Maturities of available-for-sale cash investments
    
    
    136,462
    
    
    
    205,807Sales of available-for-sale cash investments
    
    
    119,735
    
    
    
    237,255Business combinations, net of cash acquired
    
    
    (6,502
    )
    
    
    (4,334
    )Purchases of property, equipment and improvements
    
    
    (16,533
    )
    
    
    (13,162
    )Proceeds from sale of property, equipment, and improvements
    
    
    44
    
    
    
    4Capitalized software development costs
    
    
    (27,474
    )
    
    
    (29,171
    )Increase in other assets  investing
    
    
    (184
    )
    
    
    (7
    )Net cash provided by (used for) investing activities
    
    
    (25,851
    )
    
    
    31,802Cash flows from financing activities:Repayments of long-term obligations
    
    
    (136
    )
    
    
    (45
    )Payments on capital lease
    
    
    (1,276
    )
    
    
    (243
    )Net proceeds from the issuance of common stock and reissuance of treasury stock
    
    
    23,096
    
    
    
    32,675Purchases of treasury stock
    
    
    (91,421
    )
    
    
    (45,280
    )Excess tax benefit from stock-based compensation plans
    
    
    3,171
    
    
    
    Net cash used for financing activities
    
    
    (66,566
    )
    
    
    (12,893
    )Effect of exchange rate changes on cash
    
    
    19,655
    
    
    
    9,085Net increase in cash and cash equivalents
    
    
    97,791
    
    
    
    191,876Cash and cash equivalents, beginning of year
    
    $
    355,303
    
    
    $
    398,741Cash and cash equivalents, end of period
    
    $
    453,094
    
    
    $
    590,617
  5




---



##### Table of Contents



Notes to Condensed Consolidated Financial Statements
 Basis of Presentation .
   Stock-Based Compensation .
 Stock-Based Compensation Expense
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(In thousands, except per share data)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Cost of services
    
    $
    400
    
    
    $
    (141
    )
    
    $
    1,115
    
    
    $
    1,220Cost of messaging
    
    
    121
    
    
    
    
    
    
    
    431
    
    
    
    Sales and marketing
    
    
    1,346
    
    
    
    1,111
    
    
    
    3,818
    
    
    
    3,158Product development and engineering
    
    
    763
    
    
    
    693
    
    
    
    2,105
    
    
    
    1,965General and administrative
    
    
    3,158
    
    
    
    3,031
    
    
    
    9,552
    
    
    
    9,338Stock-based compensation expense included in total costs and expenses
    
    
    5,788
    
    
    
    4,694
    
    
    
    17,021
    
    
    
    15,681Tax benefit related to stock-based compensation expense
    
    
    (1,675
    )
    
    
    (1,200
    )
    
    
    (4,712
    )
    
    
    (4,322
    )Stock-based compensation expense included in net income
    
    $
    4,113
    
    
    $
    3,494
    
    
    $
    12,309
    
    
    $
    11,359Reduction of net income per share:Basic
    
    $
    0.05
    
    
    $
    0.04
    
    
    $
    0.14
    
    
    $
    0.13Diluted
    
    $
    0.04
    
    
    $
    0.04
    
    
    $
    0.13
    
    
    $
    0.12
  6




---



##### Table of Contents



Net income per share .
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(In thousands, except per share data)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Net income
    
    $
    34,130
    
    
    $
    25,085
    
    
    $
    75,306
    
    
    $
    68,670Basic net income per share
    
    $
    0.38
    
    
    $
    0.28
    
    
    $
    0.83
    
    
    $
    0.77Shares used in computing basic net income per share
    
    
    89,655
    
    
    
    89,056
    
    
    
    90,565
    
    
    
    89,269Diluted net income per share
    
    $
    0.37
    
    
    $
    0.27
    
    
    $
    0.81
    
    
    $
    0.75Shares used in computing basic net income per share
    
    
    89,655
    
    
    
    89,056
    
    
    
    90,565
    
    
    
    89,269Dilutive effect of stock options, restricted stock and stock appreciation rights
    
    
    2,059
    
    
    
    2,442
    
    
    
    2,184
    
    
    
    2,367Shares used in computing diluted net income per share
    
    
    91,714
    
    
    
    91,498
    
    
    
    92,749
    
    
    
    91,636
  Comprehensive Income
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,(In thousands)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006Net income
    
    $
    34,130
    
    
    $
    25,085
    
    
    $
    75,306
    
    
    $
    68,670Foreign currency translation gains
    
    
    17,719
    
    
    
    1,891
    
    
    
    30,168
    
    
    
    12,663Unrealized gains/(losses) on marketable securities
    
    
    194
    
    
    
    568
    
    
    
    312
    
    
    
    (20
    )Comprehensive income
    
    $
    52,043
    
    
    $
    27,544
    
    
    $
    105,786
    
    
    $
    81,313
  Segment Information
   7




---



##### Table of Contents



8




---



##### Table of Contents



Consolidated(In thousands)
    
    IPG
    
    
    iAS
    
    
    SY365
    
    
    Elimination
    
    
    TotalRevenues:License feesInfrastructure
    
    $
    58,096
    
    
    $
    106
    
    
    $
    
    
    
    
    
    
    
    $
    58,202Mobile and Embedded
    
    
    10,451
    
    
    
    16,488
    
    
    
    
    
    
    
    
    
    
    
    26,939Subtotal license fees
    
    
    68,547
    
    
    
    16,594
    
    
    
    
    
    
    
    
    
    
    
    85,141Intersegment license revenues
    
    
    44
    
    
    
    8,709
    
    
    
    
    
    
    $
    (8,753
    )
    
    
    Total license fees
    
    
    68,591
    
    
    
    25,303
    
    
    
    
    
    
    
    (8,753
    )
    
    
    85,141ServicesDirect service revenue
    
    
    123,985
    
    
    
    11,853
    
    
    
    
    
    
    
    
    
    
    
    135,838Intersegment service revenues
    
    
    44
    
    
    
    7,222
    
    
    
    
    
    
    
    (7,266
    )
    
    
    Total services
    
    
    124,029
    
    
    
    19,075
    
    
    
    
    
    
    
    (7,266
    )
    
    
    135,838Messaging
    
    
    
    
    
    
    
    
    
    
    34,287
    
    
    
    
    
    
    
    34,287Total revenues
    
    
    192,620
    
    
    
    44,378
    
    
    
    34,287
    
    
    
    (16,019
    )
    
    
    255,266Total allocated costs and expenses before amortization of other
purchased intangibles, purchased technology, cost of restructure
and unallocated costs
    
    
    148,602
    
    
    
    35,058
    
    
    
    30,321
    
    
    
    (16,019
    )
    
    
    197,962Operating income before amortization of other purchased
intangibles, purchased technology, cost of restructure and
unallocated costs
    
    
    44,018
    
    
    
    9,320
    
    
    
    3,966
    
    
    
    
    
    
    
    57,304Amortization of other purchased intangibles
    
    
    527
    
    
    
    1,046
    
    
    
    1,872
    
    
    
    
    
    
    
    3,445Amortization of purchased technology
    
    
    403
    
    
    
    2,074
    
    
    
    937
    
    
    
    
    
    
    
    3,414Operating income before cost of restructure and unallocated costs
    
    
    43,088
    
    
    
    6,200
    
    
    
    1,157
    
    
    
    
    
    
    
    50,445Cost of restructure - 2007 Activity
    
    
    17
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17Operating income before unallocated costs
    
    
    43,071
    
    
    
    6,200
    
    
    
    1,157
    
    
    
    
    
    
    
    50,428Unallocated costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,788Operating income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44,640Interest income, interest expense and other, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,710Income before income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    50,350
  Consolidated(In thousands)
    
    IPG
    
    
    iAS
    
    
    Elimination
    
    
    TotalRevenues:License feesInfrastructure
    
    $
    53,205
    
    
    $
    86
    
    
    
    
    
    
    $
    53,291Mobile and Embedded
    
    
    8,256
    
    
    
    14,791
    
    
    
    
    
    
    
    23,047Subtotal license fees
    
    
    61,461
    
    
    
    14,877
    
    
    
    
    
    
    
    76,338Intersegment license revenues
    
    
    22
    
    
    
    6,880
    
    
    
    (6,902
    )
    
    
    Total license fees
    
    
    61,483
    
    
    
    21,757
    
    
    
    (6,902
    )
    
    
    76,338ServicesDirect service revenue
    
    
    120,808
    
    
    
    11,986
    
    
    
    
    
    
    
    132,794Intersegment service revenues
    
    
    109
    
    
    
    6,690
    
    
    
    (6,799
    )
    
    
    Total services
    
    
    120,917
    
    
    
    18,676
    
    
    
    (6,799
    )
    
    
    132,794Total revenues
    
    
    182,400
    
    
    
    40,433
    
    
    
    (13,701
    )
    
    
    209,132Total allocated costs and expenses before amortization of other
purchased intangibles, purchased technology, cost of restructure
and unallocated costs
    
    
    148,209
    
    
    
    32,934
    
    
    
    (13,701
    )
    
    
    167,442Operating income before amortization of other purchased
intangibles, purchased technology, cost of restructure and
unallocated costs
    
    
    34,191
    
    
    
    7,499
    
    
    
    
    
    
    
    41,690Amortization of other purchased intangibles
    
    
    527
    
    
    
    1,046
    
    
    
    
    
    
    
    1,573Amortization of purchased technology
    
    
    430
    
    
    
    1,965
    
    
    
    
    
    
    
    2,395Operating income before cost of restructure and unallocated costs
    
    
    33,234
    
    
    
    4,488
    
    
    
    
    
    
    
    37,722Cost of restructure - 2006 Activity
    
    
    45
    
    
    
    
    
    
    
    
    
    
    
    45Operating income before unallocated costs
    
    
    33,189
    
    
    
    4,488
    
    
    
    
    
    
    
    37,677Unallocated costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,447Operating income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    32,230Interest income, interest expense and other, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,936Income before income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    40,166
 9




---



##### Table of Contents



Consolidated(In thousands)
    
    IPG
    
    
    iAS
    
    
    SY365
    
    
    Elimination
    
    
    TotalRevenues:License feesInfrastructure
    
    $
    158,983
    
    
    $
    473
    
    
    $
    17
    
    
    
    
    
    
    $
    159,473Mobile and Embedded
    
    
    24,879
    
    
    
    47,589
    
    
    
    
    
    
    
    
    
    
    
    72,468Subtotal license fees
    
    
    183,862
    
    
    
    48,062
    
    
    
    17
    
    
    
    
    
    
    
    231,941Intersegment license revenues
    
    
    283
    
    
    
    20,740
    
    
    
    
    
    
    $
    (21,023
    )
    
    
    Total license fees
    
    
    184,145
    
    
    
    68,802
    
    
    
    17
    
    
    
    (21,023
    )
    
    
    231,941ServicesDirect service revenue
    
    
    365,814
    
    
    
    34,905
    
    
    
    
    
    
    
    
    
    
    
    400,719Intersegment service revenues
    
    
    218
    
    
    
    21,280
    
    
    
    
    
    
    
    (21,498
    )
    
    
    Total services
    
    
    366,032
    
    
    
    56,185
    
    
    
    
    
    
    
    (21,498
    )
    
    
    400,719Messaging
    
    
    
    
    
    
    
    
    
    
    97,666
    
    
    
    
    
    
    
    97,666Total revenues
    
    
    550,177
    
    
    
    124,987
    
    
    
    97,683
    
    
    
    (42,521
    )
    
    
    730,326Total allocated costs and expenses before amortization of other
purchased intangibles, purchased technology, cost of restructure and
unallocated costs
    
    
    439,265
    
    
    
    103,570
    
    
    
    90,016
    
    
    
    (42,521
    )
    
    
    590,330Operating income before amortization of other purchased intangibles,
purchased technology, cost of restructure and unallocated costs
    
    
    110,912
    
    
    
    21,417
    
    
    
    7,667
    
    
    
    
    
    
    
    139,996Amortization of other purchased intangibles
    
    
    1,581
    
    
    
    3,138
    
    
    
    5,572
    
    
    
    
    
    
    
    10,291Amortization of purchased technology
    
    
    1,208
    
    
    
    6,080
    
    
    
    2,784
    
    
    
    
    
    
    
    10,072Operating income (loss) before cost of restructure and unallocated costs
    
    
    108,123
    
    
    
    12,199
    
    
    
    (689
    )
    
    
    
    
    
    
    119,633Reversal of restructure - 2007 Activity
    
    
    (30
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (30
    )Operating income (loss) before unallocated costs
    
    
    108,153
    
    
    
    12,199
    
    
    
    (689
    )
    
    
    
    
    
    
    119,663Unallocated costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,014Operating income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    101,649Interest income, interest expense and other, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15,837Income before income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    117,486
  Consolidated(In thousands)
    
    IPG
    
    
    iAS
    
    
    Elimination
    
    
    TotalRevenues:License feesInfrastructure
    
    $
    156,486
    
    
    $
    151
    
    
    
    
    
    
    $
    156,637Mobile and Embedded
    
    
    21,115
    
    
    
    48,615
    
    
    
    
    
    
    
    69,730Subtotal license fees
    
    
    177,601
    
    
    
    48,766
    
    
    
    
    
    
    
    226,367Intersegment license revenues
    
    
    64
    
    
    
    17,567
    
    
    
    (17,631
    )
    
    
    Total license fees
    
    
    177,665
    
    
    
    66,333
    
    
    
    (17,631
    )
    
    
    226,367ServicesDirect service revenue
    
    
    358,827
    
    
    
    34,505
    
    
    
    
    
    
    
    393,332Intersegment service revenues
    
    
    211
    
    
    
    18,882
    
    
    
    (19,093
    )
    
    
    Total services
    
    
    359,038
    
    
    
    53,387
    
    
    
    (19,093
    )
    
    
    393,332Total revenues
    
    
    536,703
    
    
    
    119,720
    
    
    
    (36,724
    )
    
    
    619,699Total allocated costs and expenses before amortization of other
purchased intangibles, purchased technology, cost of restructure and
unallocated costs
    
    
    443,169
    
    
    
    101,514
    
    
    
    (36,724
    )
    
    
    507,959Operating income before amortization of other purchased intangibles,
purchased technology, cost of restructure and unallocated costs
    
    
    93,534
    
    
    
    18,206
    
    
    
    
    
    
    
    111,740Amortization of other purchased intangibles
    
    
    1,533
    
    
    
    3,138
    
    
    
    
    
    
    
    4,671Amortization of purchased technology
    
    
    1,252
    
    
    
    5,893
    
    
    
    
    
    
    
    7,145Operating income before cost of restructure and unallocated cost savings
    
    
    90,749
    
    
    
    9,175
    
    
    
    
    
    
    
    99,924Cost of restructure - 2006 Activity
    
    
    145
    
    
    
    
    
    
    
    
    
    
    
    145Operating income before unallocated costs
    
    
    90,604
    
    
    
    9,175
    
    
    
    
    
    
    
    99,779Unallocated costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16,254Operating income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    83,525Interest income, interest expense and other, net
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    21,211Income before income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    104,736
 10




---



##### Table of Contents



Goodwill and Intangible Assets .
  Consolidated(In thousands)
    
    IPG
    
    
    iAS
    
    
    SY365
    
    
    TotalBalance at January 1, 2007
    
    $
    96,186
    
    
    $
    110,408
    
    
    $
    333,709
    
    
    $
    540,303Goodwill recorded on Coboplan acquisition
    
    
    
    
    
    
    3,510
    
    
    
    
    
    
    
    3,510Reduction in goodwill recorded on Mobile 365 acquisition
    
    
    
    
    
    
    
    
    
    
    (293
    )
    
    
    (293
    )Foreign currency translation adjustments & other
    
    
    820
    
    
    
    61
    
    
    
    
    
    
    
    881Balance at September 30,2007
    
    $
    97,006
    
    
    $
    113,979
    
    
    $
    333,416
    
    
    $
    544,401
     September 30, 2007
    
    
    December 31, 2006Gross
    
    
    
    
    
    
    Net
    
    
    Gross
    
    
    
    
    
    
    NetCarrying
    
    
    Accumulated
    
    
    Carrying
    
    
    Carrying
    
    
    Accumulated
    
    
    Carrying(In thousands)
    
    Amount
    
    
    Amortization
    
    
    Amount
    
    
    Amount
    
    
    Amortization
    
    
    AmountPurchased technology
    
    $
    167,910
    
    
    $
    (105,407
    )
    
    $
    62,503
    
    
    $
    163,333
    
    
    $
    (95,193
    )
    
    $
    68,140AvantGo tradenames
    
    
    3,100
    
    
    
    
    
    
    
    3,100
    
    
    
    3,100
    
    
    
    
    
    
    
    3,100XcelleNet tradenames
    
    
    4,000
    
    
    
    
    
    
    
    4,000
    
    
    
    4,000
    
    
    
    
    
    
    
    4,000Covenant not to compete
    
    
    319
    
    
    
    (139
    )
    
    
    180
    
    
    
    319
    
    
    
    (59
    )
    
    
    260Customer lists
    
    
    101,346
    
    
    
    (34,582
    )
    
    
    66,764
    
    
    
    98,289
    
    
    
    (24,141
    )
    
    
    74,148Totals
    
    $
    276,675
    
    
    $
    (140,128
    )
    
    $
    136,547
    
    
    $
    269,041
    
    
    $
    (119,393
    )
    
    $
    149,648
  2007
    
    $
    27,1702008
    
    
    27,2042009
    
    
    26,8122010
    
    
    24,3772011
    
    
    18,867
  11




---



##### Table of Contents



Litigation
       . Stock Repurchase Plan .
 12




---



##### Table of Contents



Restructuring
   (Dollars in millions)
    
    Lease Cancellations / Commitments and OtherRestructuring plan
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001
    
    
    AvantGo
    
    
    Mobile 365Accrued liabilities at December 31, 2006
    
    $
    4.2
    
    
    $
    0.2
    
    
    $
    8.3
    
    
    $
    2.0
    
    
    $
    0.9
    
    
    $
    1.3Amounts paid
    
    
    (0.9
    )
    
    
    (0.1
    )
    
    
    (2.3
    )
    
    
    (0.6
    )
    
    
    (0.8
    )
    
    
    (0.5
    )Amounts reversed
    
    
    
    
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    (0.1
    )Accrued liabilities at September 30, 2007
    
    $
    3.3
    
    
    $
    
    
    
    $
    6.0
    
    
    $
    1.4
    
    
    $
    
    
    
    $
    0.8
 Convertible Subordinated Notes
     Income Taxes Accounting for Uncertainty in Income
Taxes,
  13




---



##### Table of Contents



Recent Accounting Pronouncements
  The Fair Value Option for Financial Assets and
Financial Liabilities Fair Value Measurements, Disclosures about Fair Value of Financial Instruments.
 14




---



##### Table of Contents



ITEM 2: MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  
    
    Executive Overview that discusses at a high level our operating results and some of the trends that affect our business.
    
    Significant changes since our most recent Annual Report on Form 10-K in the Critical Accounting Policies and Estimates
as we believe it is important to understanding the assumptions and judgments underlying our financial statements.
    
    Results of Operations that begins with an overview followed by a more detailed discussion of our revenue and expenses.
    
    Liquidity and Capital Resources which discusses key aspects of our statements of cash flows, changes in our balance
sheets and our financial commitments.
    Executive Overview
 Our Business
     15




---



##### Table of Contents



Our Results
        Business Trends
   ®
 16




---



##### Table of Contents



Critical Accounting Policies and Estimates
 Accounting for Income Taxes
 
    
    Accounting for Income Taxes
    Recent Accounting Pronouncements
 SFAS 157, Fair Value Measurements
  17




---



##### Table of Contents



SFAS 159, The Fair Value Option for Financial Assets and Financial Liabilities
 Fair Value Measurements, Disclosures about Fair Value of Financial Instruments.
 Results of Operations
 Revenues
(Dollars in millions)
 Three Months ended September 30,
    
    Nine Months ended September 30,Percent
    
    
    
    
    
    
    
    
    
    Percent2007
    
    2006
    
    Change
    
    2007
    
    2006
    
    ChangeLicense fees by segment:IPG
    
    $
    68.6
    
    
    $
    61.5
    
    
    
    12
    %
    
    $
    184.1
    
    
    $
    177.7
    
    
    
    4
    %IAS
    
    
    25.3
    
    
    
    21.7
    
    
    
    17
    %
    
    
    68.8
    
    
    
    66.3
    
    
    
    4
    %SY365
    
    
    
    
    
    
    
    
    
    
    *
    
    
    
    
    
    
    
    
    
    
    
    *Eliminations
    
    
    (8.8
    )
    
    
    (6.9
    )
    
    
    28
    %
    
    
    (21.0
    )
    
    
    (17.6
    )
    
    
    19
    %Total license fees
    
    $
    85.1
    
    
    $
    76.3
    
    
    
    12
    %
    
    $
    231.9
    
    
    $
    226.4
    
    
    
    2
    %Percentage of total revenues
    
    
    34
    %
    
    
    36
    %
    
    
    
    
    
    
    32
    %
    
    
    37
    %Services by segment:IPG
    
    $
    124.0
    
    
    $
    120.9
    
    
    
    3
    %
    
    $
    366.0
    
    
    $
    359.0
    
    
    
    2
    %IAS
    
    
    19.1
    
    
    
    18.7
    
    
    
    2
    %
    
    
    56.2
    
    
    
    53.4
    
    
    
    5
    %Eliminations
    
    
    (7.3
    )
    
    
    (6.8
    )
    
    
    7
    %
    
    
    (21.5
    )
    
    
    (19.1
    )
    
    
    13
    %Total services
    
    $
    135.8
    
    
    $
    132.8
    
    
    
    2
    %
    
    $
    400.7
    
    
    $
    393.3
    
    
    
    2
    %Percentage of total revenues
    
    
    53
    %
    
    
    64
    %
    
    
    
    
    
    
    55
    %
    
    
    63
    %Messaging by segment:SY365
    
    $
    34.3
    
    
    
    
    
    
    
    *
    
    
    $
    97.7
    
    
    
    
    
    
    
    *Total messaging
    
    $
    34.3
    
    
    
    
    
    
    
    *
    
    
    $
    97.7
    
    
    
    
    
    
    
    *Percentage of total revenues
    
    
    13
    %
    
    
    
    
    
    
    *
    
    
    
    13
    %
    
    
    
    
    
    
    *Total revenues
    
    $
    255.2
    
    
    $
    209.1
    
    
    
    22
    %
    
    $
    730.3
    
    
    $
    619.7
    
    
    
    18
    %
 
 *
    
    Not meaningful ®
 ®
  18




---



##### Table of Contents



Geographical Revenues
(Dollars in millions)
 Three Months ended September 30,
    
    Nine Months ended September 30,Percent
    
    
    
    
    
    
    
    
    
    Percent2007
    
    2006
    
    Change
    
    2007
    
    2006
    
    ChangeNorth American
    
    $
    131.4
    
    
    $
    115.1
    
    
    
    14
    %
    
    $
    386.3
    
    
    $
    346.7
    
    
    
    11
    %Percentage of total revenues
    
    
    51
    %
    
    
    55
    %
    
    
    
    
    
    
    53
    %
    
    
    56
    %Total Outside North America
    
    $
    123.8
    
    
    $
    94.0
    
    
    
    32
    %
    
    $
    344.0
    
    
    $
    273.0
    
    
    
    26
    %Percentage of total revenues
    
    
    49
    %
    
    
    45
    %
    
    
    
    
    
    
    47
    %
    
    
    44
    %International: EMEA (Europe, Middle East and Africa)
    
    $
    86.4
    
    
    $
    62.6
    
    
    
    38
    %
    
    $
    235.9
    
    
    $
    184.5
    
    
    
    28
    %Percentage of total revenues
    
    
    34
    %
    
    
    30
    %
    
    
    
    
    
    
    32
    %
    
    
    30
    %Intercontinental: (Asia Pacific and Latin America)
    
    $
    37.4
    
    
    $
    31.4
    
    
    
    19
    %
    
    $
    108.1
    
    
    $
    88.5
    
    
    
    22
    %Percentage of total revenues
    
    
    15
    %
    
    
    15
    %
    
    
    
    
    
    
    15
    %
    
    
    14
    %Total revenues
    
    $
    255.2
    
    
    $
    209.1
    
    
    
    22
    %
    
    $
    730.3
    
    
    $
    619.7
    
    
    
    18
    %
    19




---



##### Table of Contents



20




---



##### Table of Contents



Costs and Expenses
(Dollars in millions)
 Three Months ended September 30,
    
    Nine Months ended September 30,Percent
    
    
    
    
    
    
    
    
    
    Percent2007
    
    2006
    
    Change
    
    2007
    
    2006
    
    ChangeCost of license fees
    
    $
    12.7
    
    
    $
    12.2
    
    
    
    4
    %
    
    $
    38.5
    
    
    $
    36.9
    
    
    
    4
    %Percentage of license fees revenues
    
    
    15
    %
    
    
    16
    %
    
    
    
    
    
    
    17
    %
    
    
    16
    %Cost of services
    
    $
    38.7
    
    
    $
    37.7
    
    
    
    3
    %
    
    $
    117.0
    
    
    $
    114.4
    
    
    
    2
    %Percentage of services revenues
    
    
    28
    %
    
    
    28
    %
    
    
    
    
    
    
    29
    %
    
    
    29
    %Cost of messaging
    
    $
    21.4
    
    
    
    
    
    
    
    *
    
    
    $
    59.2
    
    
    
    
    
    
    
    *Percentage of messaging revenues
    
    
    62
    %
    
    
    
    
    
    
    
    
    
    
    61
    %
    
    
    Sales and marketing
    
    $
    64.4
    
    
    $
    62.0
    
    
    
    4
    %
    
    $
    193.9
    
    
    $
    191.2
    
    
    
    1
    %Percentage of total revenues
    
    
    25
    %
    
    
    30
    %
    
    
    
    
    
    
    27
    %
    
    
    31
    %Product development and engineering
    
    $
    38.7
    
    
    $
    37.3
    
    
    
    4
    %
    
    $
    114.4
    
    
    $
    111.9
    
    
    
    2
    %Percentage of total revenues
    
    
    15
    %
    
    
    18
    %
    
    
    
    
    
    
    16
    %
    
    
    18
    %General and administrative
    
    $
    31.2
    
    
    $
    26.1
    
    
    
    20
    %
    
    $
    95.4
    
    
    $
    77.0
    
    
    
    24
    %Percentage of total revenues
    
    
    12
    %
    
    
    12
    %
    
    
    
    
    
    
    13
    %
    
    
    12
    %Amortization of other purchased intangibles
    
    $
    3.4
    
    
    $
    1.6
    
    
    
    113
    %
    
    $
    10.3
    
    
    $
    4.7
    
    
    
    119
    %Percentage of total revenues
    
    
    1
    %
    
    
    1
    %
    
    
    
    
    
    
    1
    %
    
    
    1
    %Cost (Reversal) of restructure
    
    $
    0.0
    
    
    $
    0.0
    
    
    
    *
    
    
    $
    (0.0
    )
    
    $
    0.1
    
    
    
    *Percentage of total revenues
    
    
    *
    
    
    
    *
    
    
    
    
    
    
    
    *
    
    
    
    *
 
 *
    
    Not meaningful Cost of License Fees.
 Cost of Services.
 Cost of Messaging
 Sales and Marketing.
 21




---



##### Table of Contents



Product Development and Engineering.
 ®
  General and Administrative.
 Amortization of Other Purchased Intangibles.
 Cost of Restructure
 Operating Income
(Dollars in millions)
 Three Months ended September 30,
    
    Nine Months ended September 30,Percent
    
    
    
    
    
    
    
    
    
    Percent2007
    
    2006
    
    Change
    
    2007
    
    2006
    
    ChangeOperating income by segment:IPG
    
    $
    43.1
    
    
    $
    33.2
    
    
    
    30
    %
    
    $
    108.1
    
    
    $
    90.6
    
    
    
    
    
    
    
    19
    %IAS
    
    
    6.2
    
    
    
    4.5
    
    
    
    38
    %
    
    
    12.2
    
    
    
    9.2
    
    
    
    
    
    
    
    33
    %SY365
    
    
    1.1
    
    
    
    
    
    
    
    *
    
    
    
    (0.7
    )
    
    
    
    
    
    
    
    
    
    
    *Unallocated costs
    
    
    (5.8
    )
    
    
    (5.5
    )
    
    
    5
    %
    
    
    (18.0
    )
    
    
    (16.3
    )
    
    
    
    
    
    
    10
    %Total operating income:
    
    $
    44.6
    
    
    $
    32.2
    
    
    
    39
    %
    
    $
    101.6
    
    
    $
    83.5
    
    
    
    
    
    
    
    22
    %Percentage of total revenues
    
    
    17
    %
    
    
    15
    %
    
    
    
    
    
    
    14
    %
    
    
    13
    %
 
 *
    
    Not meaningful 22




---



##### Table of Contents



Other Income (Expense), Net
(Dollars in millions)
 Three Months ended September 30,
    
    Nine Months ended September 30,Percent
    
    
    
    
    
    
    
    
    
    Percent2007
    
    2006
    
    Change
    
    2007
    
    2006
    
    ChangeInterest income
    
    $
    9.0
    
    
    $
    10.9
    
    
    
    (17
    %)
    
    $
    25.0
    
    
    $
    29.7
    
    
    
    (16
    %)Percentage of total revenues
    
    
    4
    %
    
    
    5
    %
    
    
    
    
    
    
    3
    %
    
    
    5
    %Interest expense and other, net
    
    $
    (3.3
    )
    
    $
    (3.0
    )
    
    
    10
    %
    
    $
    (9.1
    )
    
    $
    (8.5
    )
    
    
    7
    %Percentage of total revenues
    
    
    (1
    %)
    
    
    (1
    %)
    
    
    
    
    
    
    (1
    %)
    
    
    (1
    %)
  23




---



##### Table of Contents



Provision for Income Taxes
(Dollars in millions)
 Three Months ended September 30,
    
    Nine Months ended September 30,Percent
    
    
    
    
    
    
    
    
    
    Percent2007
    
    2006
    
    Change
    
    2007
    
    2006
    
    ChangeProvision for income taxes
    
    $
    16.2
    
    
    $
    15.1
    
    
    
    7
    %
    
    $
    42.2
    
    
    $
    36.1
    
    
    
    17
    %
   Net Income Per Share
(Dollars and shares in millions, except per share data)
 Three Months ended September 30,
    
    Nine Months ended September 30,Percent
    
    
    
    
    
    
    
    
    
    Percent2007
    
    2006
    
    Change
    
    2007
    
    2006
    
    ChangeNet income
    
    $
    34.1
    
    
    $
    25.1
    
    
    
    36
    %
    
    $
    75.3
    
    
    $
    68.7
    
    
    
    10
    %Percentage of total revenues
    
    
    13
    %
    
    
    12
    %
    
    
    
    
    
    
    10
    %
    
    
    11
    %Basic net income per share
    
    $
    0.38
    
    
    $
    0.28
    
    
    
    36
    %
    
    $
    0.83
    
    
    $
    0.77
    
    
    
    8
    %Diluted net income per share
    
    $
    0.37
    
    
    $
    0.27
    
    
    
    37
    %
    
    $
    0.81
    
    
    $
    0.75
    
    
    
    8
    %Shares used in computing basic net income per share
    
    
    89.7
    
    
    
    89.1
    
    
    
    1
    %
    
    
    90.6
    
    
    
    89.3
    
    
    
    1
    %Shares used in computing diluted net income per share
    
    
    91.7
    
    
    
    91.5
    
    
    
    *
    
    
    
    92.7
    
    
    
    91.6
    
    
    
    1
    %
 
 *
    
    Not meaningful     24




---



##### Table of Contents



Liquidity and Capital Resources
(Dollars in millions)
 Nine Months EndedSeptember 30,Percent2007
    
    2006
    
    ChangeWorking capital
    
    $
    537.9
    
    
    $
    733.5
    
    
    
    (27
    %)Cash and cash equivalents
    
    $
    453.1
    
    
    $
    974.0
    
    
    
    (53
    %)Net cash provided by operating activities
    
    $
    170.6
    
    
    $
    163.9
    
    
    
    4
    %Net cash provided by (used for) investing activities
    
    $
    (25.9
    )
    
    $
    31.8
    
    
    
    *Net cash used for financing activities
    
    $
    66.6
    
    
    $
    12.9
    
    
    
    416
    %
 
 *
    
    Not meaningful           25




---



##### Table of Contents



ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES OF MARKET RISK
        
 ITEM 4: CONTROLS AND PROCEDURES
     26




---



##### Table of Contents



PART II: OTHER INFORMATION
 
 ITEM 1: LEGAL PROCEEDINGS
  
 ITEM 1 (A): RISK FACTORS
 Future Operating Results
  Significant variation in the timing and amount of our revenues may cause fluctuations in our
quarterly operating results and an accurate estimation of our revenues is difficult.
    We may encounter difficulties in integrating our Mobile 365 acquisition, other acquisitions or
strategic relationships and we may incur acquisition-related charges that could adversely affect
our operating results.
   27




---



##### Table of Contents



®
      Economic conditions in the U.S. and worldwide could adversely affect our revenues.
  If we fail to maintain or expand our relationships with strategic partners and indirect
distribution channels our license revenues could decline.
  28




---



##### Table of Contents



System failures, delays and other problems could harm our reputation and business, cause us to lose
customers and expose us to customer liability.
    Industry consolidation and other competitive pressures could affect prices or demand for our
products and services, and our business may be adversely affected.
   The ability to rapidly develop and bring to market advanced products and services that are
successful is crucial to maintaining our competitive position.
  If our existing customers cancel or fail to renew their technical support agreements, our technical
support revenues could be adversely affected.
  29




---



##### Table of Contents



Pricing pressure in the mobile messaging market could adversely affect our operating results.
  Unanticipated delays or accelerations in our sales cycles could result in significant fluctuations
in our quarterly operating results.
  Our mobile messaging customer contracts may not continue to generate revenues at or near our
historical levels of revenues from these customers.
  If we do not adapt to rapid technological change in the telecommunications industry, we could lose
customers or market share.
  Restructuring activities and reorganizations in our sales model or business units may not succeed
in increasing revenues and operating results.
   30




---



##### Table of Contents



Our results of operations may depend on the compatibility of our products with other software
developed by third parties.
  We are subject to risks arising from our international operations.
  We may not receive significant revenues from our current research and development efforts for
several years, if at all.
  We might experience significant errors or security flaws in our products and services.
  Unanticipated changes in our tax rates could affect our future financial results.
  We face exposure to adverse movements in foreign currency exchange rates.
  31




---



##### Table of Contents



Growing market acceptance of open source software could cause a decline in our revenues and
operating margins.
  Insufficient protection for our intellectual property rights may have a material adverse affect on
our results of operations or our ability to compete.
  If third parties claim that we are in violation of their intellectual property rights, it could
have a negative impact on our results of operations or ability to compete.
  32




---



##### Table of Contents



Laws and regulations affecting our customers and us and future laws and regulations to which they
or we may become subject may harm our business.
  Our key personnel are critical to our business, and we cannot assure that they will remain with us.
  Our sales to government clients subject us to risks including early termination, audits,
investigations, sanctions and penalties.
   33




---



##### Table of Contents



Changes in accounting and legal standards could adversely affect our future operating results.
  ,
   Accounting for Convertible Debt and Debt Issued with Stock Purchase Warrants
  The unfavorable outcome of litigation and other claims against us could have a material adverse
impact on our financial condition and results of operations.
  Our operations and financial results could be severely harmed by certain natural disasters.
  34




---



##### Table of Contents



Provisions of our corporate documents have anti-takeover effects that could prevent a change in
control.
  
 ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
   ISSUER PURCHASES OF EQUITY SECURITIES
 (d) Maximum(c) Total
    
    
    Number (orNumber of
    
    
    ApproximateShares (or
    
    
    Dollar Value)Units)
    
    
    of Shares (or(a) Total
    
    
    
    
    
    
    Purchased as
    
    
    Units) that MayNumber of
    
    
    (b) Average
    
    
    Part of Publicly
    
    
    Yet BeShares (or
    
    
    Price Paid per
    
    
    Announced
    
    
    PurchasedPeriod
    
    Units)
    
    
    Share (or Unit)
    
    
    Plans or
    
    
    Under the Plans(2006)
    
    Purchased (#)
    
    
    ($)
    
    
    Programs (#)
    
    
    or Programs ($)July 1  31
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    August 1  31
    
    
    1,383,800
    
    
    $
    23.72
    
    
    
    1,383,800
    
    
    $
    158,374,000September 1  30
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    1,383,800
    
    
    $
    23.72
    
    
    
    1,383,800
    
    
    $
    158,374,000
 35




---



##### Table of Contents



ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
 None
 
 ITEM 5: OTHER INFORMATION
  
 ITEM 6: EXHIBITS
   36




---



##### Table of Contents



SIGNATURES
  November 8, 2007
    SYBASE, INC.By
    /s/ PIETER VAN DER VORSTPieter Van der VorstSenior Vice President and Chief Financial Officer
(Principal Financial Officer)By
    /s/ JEFFREY G. ROSSJeffrey G. RossVice President and Corporate Controller
(Principal Accounting Officer) 37




---



##### Table of Contents



EXHIBIT INDEX
 Exhibit No.
    
    Description12
    
    Computation of Ratio of Earnings to Fixed Charges31.1
    
    Certification of Chief Executive Officer pursuant to
Securities Exchange Act Rule 13a-14 or 15d-14, as adopted
pursuant to Section 302(a) of the Sarbanes-Oxley Act of 200231.2
    
    Certification of Chief Financial Officer pursuant to
Securities Exchange Act Rule 13a-14 or 15d-14, as adopted
pursuant to Section 302(a) of the Sarbanes-Oxley Act of 200232
    
    Certification of Chief Executive Officer and Chief Financial
Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 38