Symantec 1996 Annual Report Download

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Growing Focused 19 9 6 Symantec Annual Report

Table of contents

  • Page 1
    Growing Focused 1 9 9 6 Symantec Annual Report

  • Page 2
    ... consumer/ productivity applications. Customers consist primarily of corporations, higher education institutions, government agencies, and individual users, which are mainly located in North America, Europe, Asia/ Pacific, and Latin America. Symantec is headquartered in Cupertino, California, with...

  • Page 3
    F I N A N C I A L H I G H L I G H T S Fiscal Year (In thousands, except per share data)      Net revenues Net income (loss) Net income (loss) per share Total assets Stockholders' equity

  • Page 4
    ..., was $0.76 per share. Excluding one-time charges and Delrina preacquisition losses, our operations showed a profit of $35.3 million. Models of efficiency. A good company seeks every opportunity to improve its business processes, and Symantec in fiscal 1996 identified two areas in which focused...

  • Page 5
    ... months before the Windows 95 launch, we released a highly successful preview version of our Norton Utilities for Windows 95 software. And on August 28th, two weeks before the operating system's worldwide debut, our Norton Utilities, Norton AntiVirus, and Norton Navigator products were available in...

  • Page 6
    ...Inc., to provide a server management component to these solutions. New products, new opportunities. During the year, we also introduced our Symantec Café for Windows and Macintosh, the first comprehensive development environment for building Web applets based on Sun's Java programming language. As...

  • Page 7
    ... Condition and Results of Opera tions" Rea ders should carefully review the risk factors described in the other documents the Company files from time to time with the Securities and Exchange Commission, including the Annual Report on Form 10-K as filed by Symantec Corporation on June 26, 1996.

  • Page 8
    ..." in our daily lives. Symantec's Peter Norton Group has been at the forefront of the Company's effort in this area, with our industry-leading Norton Uti li ti es and Norton AntiVirus products. T hese powerful programs enable users to perform basic diagnostic and repair functions through simple...

  • Page 9
    It's not just for business anymore; the PC is now at home anyw here. A nd so is Symantec softw are.

  • Page 10
    If you had to share information in 19 9 6 , the best place to be w as at a PC running Symantec communications softw are.

  • Page 11
    ..., allowing users instant access to remote applications, files, email, and even printers. And with the introduction in November 1995 of Windows 95 and Windows NT versions, an increasing number of people are able to make these contacts no matter where they are. To help them stay in touch, Symant ec...

  • Page 12
    ... valuable file management features not found in Windows 95, such as index- based searching for speedy access to programs and information. And, with the absence of a virus-protection component in the new operating system, Symantec's Norton AntiVirus provided complete, 3 2-bit detection and removal...

  • Page 13
    In 19 9 6 , w e helped users as they moved up to the new, more pow erful 3 2 -bit operating systems.

  • Page 14
    In the past 1 2 months, w e put netw ork administrators in their proper place: at the center of things.

  • Page 15
    ... Cheyenne Software's backup product ARCServe into our Norton Ad m i ni strator Sui te. And in May 19 9 6 , we acquired Fast Track, Inc., to integrate its Exposé server management product with our product offerings. All of these actions have helped to further coalesce Symantec's network solutions...

  • Page 16
    ... rate of client systems from viruses traveling over the Internet. To address this, the latest version of our Nort on AntiVirus software will offer free, automatic virus updates over the Internet. Additionally, our Symantec AntiVirus Research Center has developed the first native-Java virus scanner...

  • Page 17
    The message is the medium, and Symantec is helping people w rite it.

  • Page 18
    ...Windows 95 T he Norton Desktopâ„¢ T he Norton Desktopâ„¢ Administrator PC Tools® ® ® â- T he Norton pcANYWHERE ® T he Norton pcANYWHERE32 ® T he Norton pcANYWHERE ® Access Server â- â- â- â- â- â- â- T he Norton Administratorâ„¢ for Networks T he Norton Administratorâ„¢ Suite...

  • Page 19
    ...N T E N T S 18 Selected Financial Data Management's Discussion and Analysis of Financial Condition and Results of Operations Consolidated Financial Statements Summary of Significant Accounting Policies Notes to Consolidated Financial Statements Report of Ernst & Young LLP , Independent Auditors 19...

  • Page 20
    ... Associates, Inc. and Leonard Development Group in fiscal 1992. The Company has never paid cash dividends on its stock with the exception of distributions to stockholders of acquired companies. Fi ve Year Sum m ary Year Ended March 31, (In thousands, except net income (loss) per share) S TA...

  • Page 21
    ...increasingly common in the software industry. Readers should carefully review the risk factors described in the other documents the Company files from time to time with the Securities and Exchange Commission, including the Annual Report on Form 10-K as filed by Symantec Corporation on June 26, 1996...

  • Page 22
    ...1995 net revenues from the prior year was principally due to an increase in unit sales of Fax and Communications software products resulting from the release of new and upgraded products in these categories, as well as an increase in site license and distribution revenues, which was partially offset...

  • Page 23
    ... to desktop product revenues which are typically comprised of higher volume, low dollar pre-packaged product transactions. T he prices of site licenses tend to vary based upon the individual products purchased, the number of units licensed and the number of workstations at the customer's site. Price...

  • Page 24
    ... refund, and retailers may return older versions of products. Various distributors and resellers may have different return policies that may negatively impact the level of products which are returned to Symantec. Product returns occur when the Company introduces upgrades and new versions of products...

  • Page 25
    ...an immediate, material adverse effect on net revenues and on the Company's operating results. Symantec maintains a research and development facility in Santa Monica, California that was damaged during the January 1994 earthquake in Southern California. Much of the Company's administration, sales and...

  • Page 26
    ...new and upgraded products, including products currently being developed for Windows 95 and Windows NT , Symantec expects the expenses associated with these efforts to increase in dollar amount and to continue to constitute its most significant operating expense. T here can be no assurance that these...

  • Page 27
    ... expenses and enhance operational efficiencies by centralizing certain order administration, technical support and customer service activities in Eugene, Oregon. In fiscal 1994, the Company recorded a charge of $4.7 million, which included $1.1 million for the elimination of duplicative and excess...

  • Page 28
    ... totaling $10.0 million were converted into 833,333 shares of Symantec common stock, resulting in the decrease in fiscal 1996 interest expense. Other income (expense) is primarily comprised of foreign currency exchange gains and losses from fluctuations in currency exchange rates. T he Company...

  • Page 29
    ... been traded on the Toronto Stock E xchange under the symbol DE since the acquisition of Delrina by Symantec on November 22, 1995. T he high and low closing sales prices set forth below are in Canadian dollars as reported on the Toronto Stock Exchange. Delrina exchangeable stock is exchangeable at...

  • Page 30
    ...none) Common stock (authorized issued and outstanding and shares) Capital in excess of par value Notes receivable from stockholders Cumulative translation adjustment Accumulated deficit Total stockholders' equity - - The accompanying summary of Significant Accounting Policies and...

  • Page 31
    ..., except net income (loss) per share) Year Ended March ,    Net revenues Cost of revenues Gross margin Operating expenses: Research and development Sales and marketing General and administrative Acquisition, restructuring and other expenses Total...

  • Page 32
    ... shares in connection with Delrina's initial public offering Issued common stock:  shares under stock plans and other   - - - - - -  shares for acquisition of product rights Repayments on notes Other equity transactions of acquired companies...

  • Page 33
    ... proceeds from sales of common stock and other Net cash provided by financing activities Effect of exchange rate fluctuations on cash and cash equivalents Increase (decrease) in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents S U P P L EM EN TA L C A SH...

  • Page 34
    ..., network/ communications utilities, fax, contact management, development tools and consumer/ productivity applications. Customers consist primarily of corporations, higher education institutions, government agencies and individual users, which are mainly located in North America, Europe, Asia...

  • Page 35
    ... stock method, as applicable, if dilutive. Common stock equivalents are attributable to outstanding stock options. Fully diluted earnings per share includes the assumed conversion of all of the outstanding convertible subordinated debentures. Concentrations of Credit Risk T he Company's product...

  • Page 36
    ...Contact Software International, Inc. ("Contact") June On December 31, 1993, Symantec acquired certain technology for developing an architecture and tools to build client-server applications from DataEase International, Inc. in exchange for 391,456 shares of Symantec common stock and cancellation...

  • Page 37
    ... the debentures at the closing price of the Company's common stock at March 3 1 , 1996, which exceeded the conversion price of $12 per share. All cash equivalents and short-term investments have been classified as available-for-sale securities and are reported at amortized cost, which approximates...

  • Page 38
    ... to employees, officers, directors, consultants and independent contractors, including an increase of 1.0 million shares approved in fiscal 1996 by Symantec's stockholders for issuance under the 1988 Employees Stock Option Plan. Options under the Company's option plans may be granted at prices not...

  • Page 39
    ...the Company. T he Company's executive officers are not eligible for awards under the 1994 Patent Incentive Plan. As of March 31, 1996, approximately 4,000 shares had been issued under this plan. Stock option and warrant activity was as follows: (In thousands, except exercise price per share) Number...

  • Page 40
    ... 1994, Symantec implemented a plan to consolidate and centralize certain operational activities. T his plan was designed to reduce operating expenses and enhance operational efficiencies by centralizing certain order administration, technical support and customer service activities in Eugene, Oregon...

  • Page 41
    ...to sell competing products. A trial date has been set for July 1996. Symant ec believes the complaint has no merit. On September 3, 1992, Borland International, Inc. ("Borland") filed a lawsuit in the Superior Court for Santa Cruz County, California against Symantec, Gordon E. Eubanks, Jr. (Symantec...

  • Page 42
    .... N ote 1 2 . Segment Infor mation Symantec operates in the microcomputer software industry business segment. T he Company markets its products in No rt h America and international countries primarily through retail and distribution channels. Information by Geographic Area (In thousands) Year Ended...

  • Page 43
    ... our audits and the report of other auditors, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein. Ernst & Young LLP San Jose, California April 24, 1996

  • Page 44
    ... L O Y E ES D E V E L O P M E N T Symantec Australia Pty Ltd. Sydney, Australia Delrina (Canada) Corporation Toronto, Canada Symantec S.r. l. Milan, Italy Gordon E. Eubanks, Jr. Beaverton, Oregon Eugene, Oregon Melville, New York Santa Monica, California St. Louis, Missouri Sunnyvale, California...

  • Page 45
    Symantec Corporation 10201 Torre Avenue Cupertino, California 9 5 0 1 4 -2 1 3 2