STOCKREPORTS		 Sybase, Inc. Nasdaq Symbol SYBS
19-JUL-97 Industry:
Computer (Software & Services)		 Summary: SYBS develops, markets and supports relational database management software and development tools and services for on-line applications in networked computing environments.

Recent Price 14.81
52 Wk Range 20.00 - 12.50		 Yield Nil
12-Mo. P/E NM

Quantitative Evaluation:
Outlook (1 Lowest - 5 Highest)
5-
Fair Value
17.50
Risk
HIGH
Earn/Div Rank
C
Technical Evaluation:
BEARISH since 06/97
Rel. Strength Rank (1 Lowest - 99 Highest)
29
Insider Activity
UnFavorable

Overview 01-MAY-97

Revenues should advance modestly in 1997. Growth of the company's database and tools software has slowed over the last year; however, on a sequential basis, revenues should begin to increase in the second quarter and into 1998, spurred by the introduction of many new products and a strong worldwide market for relational database management system software and related products and services, as well as benefits from a restructured sales force. Margins should widen through 1997, on the increasing revenue growth and well controlled costs, in part stemming from last year's restructuring. Earnings should benefit from the modestly higher revenues and wider margins. Comparisons in 1997 will benefit from the absence of 1996's third quarter restructuring charge of approximately $49.2 million ($0.65 a share).

Valuation 01-MAY-97

The shares declined sharply in 1996, on disappointing results that reflected slow commitments to the newest version of the flagship product, SQL Server 11, as well as the unfavorable impact of a sales force restructuring. The database market continues to grow rapidly, as companies cope with managing, manipulating and utilizing data stored on their computer systems. However, we believe that the current stock price fully reflects short-term operational improvement stemming from the recent expense reductions, ongoing acceptance of SQL Server 11, and the release of other new products, including the newest version of PowerBuilder. While the company is frequently mentioned as a takeover candidate, we do not expect SYBS to be acquired. In light of the profits expected in 1997 and 1998, we believe that the shares will only track the market in coming months.

Key Stock Statistics

S&P EPS Est. 1997 0.35
P/E on S&P Est. 1997 42.3
S&P EPS Est. 1998 0.60
Dividend Rate/Share Nil
Shs. outstg. (M) 78.7
Avg. daily vol. (M) 1.039
Tang. Bk. Value/Share 5.36
Beta 0.51
Shareholders 2,300
Market cap. (B) $ 1.2
Inst. holdings 56%
Value of $10,000 invested 5 years ago:$ 14,276

Fiscal Year Ending Dec. 31

Revenue (Million $)
1997 1996 1995 1994 1993 1992
Q1 241.9 243.7 216.3 137.9 80.10 51.50
Q2 237.6 249.9 240.0 158.1 96.30 62.50
Q3 NA 250.2 233.1 183.4 112.5 67.40
Q4 NA 267.8 267.3 214.4 137.8 83.20
Year NA 1,012 956.6 693.8 426.7 264.6

Earning Per Share ($)
1997 1996 1995 1994 1993 1992
Q1 0.05 -0.09 -0.25 0.22 0.13 0.06
Q2 0.06 -0.33 -0.13 0.29 0.18 0.09
Q3 E0.10 -0.69 0.02 0.36 0.22 0.12
Q4 E0.14 0.07 0.08 0.52 0.34 0.22
Year E0.35 -1.05 -0.27 1.38 0.86 0.48

Dividend Data: No cash dividends have been paid.

Business Summary 01-MAY-97

You won't see "datawarehouses" and "datamarts" on any city street, but Sybase can help you find them in cyberspace. In addition to utilizing those database structures (see below), Sybase's software helps users to address customer needs for on-line transaction processing (OLTP) systems, and Internet and intranet applications. Sybase is responding to increasing demand for software and associated tools to better interpret and utilize data, as organizations increasingly use information for competitive advantage. It offers a full line of relational database management software products, application development tools and related software and services for integrated, enterprise-wide information management systems.

OLTP applications, such as rental car reservation systems or securities brokerage systems, are characterized by the need to process and store a high volume of transactions. Datawarehouse and datamart applications are designed to access and analyze corporate data to provide information to enable the enterprise to make decisions. For example, a retail clothing business may need to know the number of sweaters sold in the months of January and February in all stores in a particular region, in order to more efficiently manage inventory levels. Internet and intranet applications historically have been used for the dissemination of relatively static information, such as marketing material. However, such applications are expected to become more dynamic, such as integrating Websites with databases, including those with OLTP and data warehousing applications.

The company's products, specifically designed for network-based, client/server computing, all allow users to design, develop, deploy and manage on-line applications. Products include a broad range of database servers (the SYBASE SQL Server family), application development tools (including PowerBuilder), and middleware products including administration and operational control tools, and connectivity software such as interfaces and gateways. Its PowerBuilder products are used to design, prototype, build, test, deploy and maintain client/server business applications. Middleware products enable different types of information distributed in multiple locations and stored in disparate computing systems, to be integrated easily for use in OLTP and data warehouses. Through its SQL Solutions subsidiary, SYBS provides comprehensive consulting, integration, education and technical support services required to support its software products.

License fees provided 60% of revenues in 1996, with service revenues contributing the remainder. International operations accounted for 32% of revenues in 1996, down from 38% in 1995.

Capitalization

Long Term Debt: None (3/97).

Per Share Data ($)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Tangible Bk. Val. 4.51 5.19 5.91 3.80 2.53 2.02 3.71 NA NA NA
Cash Flow 0.25 0.78 2.11 1.27 0.74 0.45 0.03 NA NA NA
Earnings -1.05 -0.27 1.38 0.86 0.48 0.19 -0.20 NA NA NA
Dividends Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Payout Ratio Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Prices - High 37 3/8 55 57 43 1/2 24 7/8 10 5/8 NA NA NA NA
- Low 13 1/2 19 7/8 35 1/4 22 3/4 10 1/4 6 3/4 NA NA NA NA
P/E Ratio - High NM NM 41 51 52 56 NM NM NM NM
- Low NM NM 26 26 21 36 NM NM NM NM

Income Statement Analysis (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Revs. 1,012 957 694 427 265 159 103 57.0 24.0 6.0
Oper. Inc. 72.9 95.8 156 90.6 52.8 22.4 1.3 5.2 0.8 NA
Depr. 97.8 75.2 39.6 21.1 13.0 9.7 6.7 2.3 0.6 NA
Int. Exp. 1.7 0.3 NA NA 1.0 1.5 1.2 0.5 0.3 0.0
Pretax Inc. -66.7 -14.7 121 71.2 39.5 12.5 -5.8 3.4 0.1 -7.4
Eff. Tax Rate NM NM 38% 38% 40% 44% NM 48% 161% Nil
Net Inc. -79.0 -19.5 75.2 44.1 23.7 7.0 -6.0 1.8 -0.1 -7.4

Balance Sheet & Other Fin. Data (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Cash 175 224 197 138 75.0 59.3 12.9 16.7 NA NA
Curr. Assets 445 461 384 257 167 116 51.0 44.0 NA NA
Total Assets 752 766 576 333 210 145 78.0 57.0 NA NA
Curr. Liab. 352 321 232 136 83.1 55.1 36.7 21.2 NA NA
LT Debt Nil Nil 0.9 0.8 3.2 5.8 7.2 NA NA NA
Common Eqty. 397 440 337 191 118 80.0 32.0 NA NA NA
Total Cap. 397 440 339 192 123 86.0 39.0 NA NA NA
Cap. Exp. 82.2 121 78.2 43.7 20.5 3.6 4.1 1.6 0.2 NA
Cash Flow 18.8 55.7 115 65.2 36.7 16.7 0.7 4.1 0.6 NA

Curr. Ratio 1.3 1.4 1.7 1.9 2.0 2.1 1.4 2.1 NA NA
% LT Debt of Cap. Nil Nil 0.3 0.4 2.6 6.7 18.4 NA NA NA
% Net Inc.of Revs. NM NM 10.8 10.3 9.0 4.4 NM 3.0 NM NM
% Ret. on Assets NM NM 16.1 15.9 12.3 2.6 NA 4.6 NA NA
% Ret. on Equity NM NM 27.7 27.9 22.1 5.7 NA NA NA NA

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--6475 Christie Ave., Emeryville, CA 94608. Tel--(510) 596-3500. Fax--(510) 658-9441. Website--http://www.sybase.com Chrmn--M. B. Hoffman. Pres & CEO--M. E. Kertzman. SVP & CFO--J. L. Acosta. Investor Contact--Randy S. Gottfried. Dirs--R. C. Alberding, R. S. Epstein, M. B. Hoffman, M. F. Kertzman, L. W. Krause, D. E. Liddle, A. B. Salisbury, R. P. Wayman, J. T. Webber. Transfer Agent & Registrar--First National Bank of Boston. Incorporated--in California in 1984; reincorporated in Delaware in 1991. Empl-- 5,471. S&P Analyst: Peter C. Wood, CFA


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