This function will only perform dynamic_sidebar if it is already declared. Colons are PHP alternative syntax for control structures . They are intended for use in templates / views.
In this case, it looks like if has an empty body, and it is only used to call dyanamic_sidebar if it exists, since the dynamic_sidebar(1) call will not be executed if the first logical check fails.
else will output something between itself and <?php endif; ?> <?php endif; ?> . In this case, it fires when the dynamic_sidebar function does not exist or if dyanmic_sidebar(1) does not return true .
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