Symantec 1996 Annual Report Download - page 36

Note 1. Balance Sheet Information
Note 2. Business Combinations and
Purchased Product Rights
During the three fiscal years ended March 31, 1996, Symantec
completed acquisitions of the following companies:
All of these acquisitions we re accounted for as poolings of
interest. In connection with the acquisitions of the companies
listed above, Symantec incurred significant acquisition expenses
(See Note 10). Due to differing year ends of Symantec, Delrina
and Fifth Generation, financial information for dissimilar fiscal
year ends was combined. Delrina’s fiscal years ended June 30,
1995 and 1994 we re combined with Sy m a n t e c’s fiscal ye a r s
ended Ma rc h 31, 1995 and 1994, re s p e c t i ve l y. Ac c o rd i n g l y,
De l r i n a’s results of operations for the quarter ended June 30,
1995 were duplicated in the combined statements of operations
for fiscal 1996 and 1995 and Delrina’s net loss for the quarter
ended June 30, 1995 was credited to stockholder’s equity.
Delrina reported net revenues of $19.8 million and net loss of
$4.8 million in the quarter ended June 30, 1995. Fi f t h
Ge n e r a t i o n’s fiscal year ended December 31, 1992 was com-
bined with Sy m a n t e c’s fiscal year ended Ma rc h 3 1 , 1 9 9 3 .
Ac c o rd i n g l y, Fifth Ge n e r a t i o n’s results of operations for the
q u a r ter ended Ma rc h 3 1 , 1993 we re charged to stockholders’
equity. Fifth Generation’s net loss of $16.4 million for the quar-
ter ended March 31, 1993 was largely due to the decline in net
revenues to $1.9 million and the write-off of previously capital-
ized software costs.
The table below sets forth the composition of combined net
revenues and net income (loss) for the pre-acquisition periods
indicated. Information for the year ended March 31, 1996 with
respect to Delrina reflects the period ended November 22,
1995, the date Delrina was acquired.
On December 31, 1993, Symantec acquired certain technology
for developing an arc h i t e c t u r e and tools to build client-serve r
applications from DataEase International, Inc. in exchange for
391,456 shares of Symantec common stock and cancellation of
the principal and accrued interest on a $1.0 million outstanding
note re c e i vable. The Company capitalized approximately $7.7
million of purchased product rights as a result of this transaction.
During fiscal 1996 the Company wrote off the re m a i n i n g
unamortized cost and licensed the product rights for an imma-
terial amount.
Notes to Consolidated Financial St a t e m e n t s
(In thousands) March ,
 
Cash, cash equivalents
and short-term investments:
Cash  ,  ,
Cash equivalents , ,
Short-term investments , ,
 ,  ,
Trade accounts receivable:
Receivables  ,  ,
Less: allowance for doubtful accounts (,)(,)
 ,  ,
Inventories:
Raw materials  ,  ,
Finished goods , ,
 ,  ,
Equipment and leasehold improvements:
Computer equipment  ,  ,
Office furniture and equipment , ,
Leasehold improvements , ,
, ,
Less: accumulated
depreciation and amortization (,)(,)
 ,  ,
Purchased intangibles:
Product rights  ,  ,
Less: accumulated amortization (,)(,)
   ,
Other accrued expenses:
Acquisition and restructuring expenses  , ,
Deferred revenue , ,
Marketing development funds , ,
Other , ,
 ,  ,
Shares of Acquired
Symantec Company
Common Stock
Stock Options
Companies Acquired Date Acquired Issued Assumed
Delrina Corporation
(“Delrina”) Nov. ,  ,,*,,
Intec Systems Corporation
(“Intec”) Aug. ,  , —
Central Point Software, Inc.
(“Central Point”) June ,  ,, ,
SLR Systems, Inc.
(“SLR”) May ,  , —
Fifth Generation Systems, Inc.
(“Fifth Generation”) Oct. ,  ,, —
Contact Software International, Inc.
(“Contact”) June ,  ,, ,
*Includes Delrina exchangeable stock that is traded on the To ronto Stock Exchange. Delrina stockholders
re c e i ved Delrina exchangeable stock in exchange for Delrina common shares at a rate of 0.61 per share .
Delrina exchangeable stock may be conve rted at any time into Symantec common stock on a one-for-one basis
at each stockholder’s option.
(In thousands) Year Ended March ,
  
Net revenues:
Symantec  ,  ,  ,
Delrina , , ,
 ,  ,  ,
Net income (loss):
Symantec (,) ,  (,)
Delrina (,), ,
(,) ,  (,)