Symantec 1998 Annual Report Download

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Table of contents

  • Page 1

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    ...shareholder value by implementing a long-time vision, bringing solutions to customers that meet their needs and executing our business strategy well. Sep. 3 0 , 19 9 7 Jun. 3 0 , 19 9 7 Ma r . 3 1, 19 9 7 Dec. 3 1, 19 9 6 NET INCOME PER SHARE - DILUTED (in thousands) Ma r . 3 1, 19 9 8 Dec. 3 1, 19...

  • Page 3
    ... 1998 Annual Report Corporate Profile Symantec Corporation helps make users productive and keep their computers safe and reliable, anywhere and anytime. As the world leader in utility software for business and personal computing, Symantec is acclaimed for both its customer satisfaction and product...

  • Page 4
    Letter to Shareholders 1 11

  • Page 5
    .... President and Chief Executive Officer To our shareholders, I'm pleased to report to you that fiscal 1998 was the most successful year in Symantec's history, with record revenue and profit achieved in each quarter. Through the hard work of our dedicated employees and partners, we met and surpassed...

  • Page 6
    ... share away from established solutions; both products placed high on PC Data's Top Ten list of best-selling software in early 1998. To identify viruses before they become a problem for customers, we opened new Symantec AntiVirus Research Centers in the U.S. and Australia. These state-of-the art...

  • Page 7
    ...the new Windows 98 and Windows NT operating systems, all of our products, both existing and new, are Year 2000 compliant. WORKING TOGETHER FOR SUCCESS As part of our strategy to strengthen the Company's presence in worldwide corporate markets, we announced a joint development, cross-licensing, and...

  • Page 8
    ... family of anti-virus products that will be marketed under the Norton AntiVirus brand name. Symantec will license IBM's immune system technology and combine it with our own technology to produce powerful new products and solutions. Also, IBM will recommend Norton AntiVirus to its corporate customers...

  • Page 9
    111 1

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    1v v 1

  • Page 11
    ... ® Access Server Norton Mobile Essentials Symantec Mobile Update WinFax Norton Mobile Essentials ™ for Windows 95 Symantec Mobile Update ™ for Windows 95/NT WinFax PRO™ for Windows 95/NT WinFax PRO™ for Windows 3.1 Security & Assistance Business Unit Norton AntiVirus Norton AntiVirus...

  • Page 12
    ... 31, 1994; Central Point Software, Inc. ("Central Point") on June 1, 1994; Part Four Item 14: Exhibits, Financial Statement Schedules and Reports on Form 8-K Signatures 34 user, free of cost, to download application bug-fix patches via an Internet connection to Symantec's corporate website. 56...

  • Page 13
    ... service that locates and installs patches, updates and drivers specific to a user's installed hardware and software. The program also offers crash protection, limited virus detection and repair and several new optimization utilities to accelerate a computer's performance. Norton Utilities runs...

  • Page 14
    ... remote-control software package on all Hewlett-Packard Brio personal computers targeted for small and medium sized companies without an information technology staff. Hewlett-Packard will also Symantec's product support program provides a wide variety of free and feebased technical support services...

  • Page 15
    ... from Network Associates, Inc. ("Network Associates"), Dr. Solomon's Anti-Virus from Dr. Solomon's Software and Inoculan from Computer Associates International, Inc. Norton AntiVirus also competes with Trend Micro, Inc.'s InterScan VirusWall and PC-cillin Corp. Edition. Norton Utilities competes...

  • Page 16
    ...follows: Location North America Cupertino, California Corporate Headquarters Emerging Business and Remote Productivity Solutions Symantec Technology Center Sunnyvale, California Santa Monica, California Eugene, Oregon Beaverton, Oregon Melville, New York Toronto, Canada International Leiden, Holland...

  • Page 17
    ... in utility software for business and personal computing. Founded in 1982, the Company has offices in the United States, Canada, Asia, Australia, Europe, Africa, Latin America and South America. During the last three fiscal years, Symantec has acquired the following companies: Shares of Symantec...

  • Page 18
    .... Increased net revenues for the business unit in fiscal 1998 primarily related to sales of Windows 95, Windows NT and Macintosh versions of Norton Utilities, as well as the multiplatform workstations/servers version of Norton AntiVirus. New product releases of CrashGuard Deluxe and Norton Uninstall...

  • Page 19
    ... at fiscal 1998 year-end from $160 million at fiscal 1997 year-end. This increase was largely due to cash provided from operating activities, net proceeds from the exercise of stock options and net proceeds from the sales of common stock under the Company's Employee Stock Purchase Plan. In addition...

  • Page 20
    ... channels in anticipation of price increases, sales promotions or incentives. Inventories may be decreased between the date Symantec announces a new version or new product and the date of release, because distributors, dealers and end users often delay purchases, cancel orders or return products...

  • Page 21
    ... with hardware products prior to sale through retail channels. VAR and ISV licensing agreements are generally non-exclusive and do not require the VAR or ISV to make minimum purchases. If the Company is not successful in maintaining its current relationships and securing license agreements with...

  • Page 22
    ... sells some of its older product lines, which are not being actively developed and updated, as such products are not necessarily Year 2000 compliant. Symantec is currently party to a lawsuit related to the alleged inability of pre-version 4.0 Norton AntiVirus products to function properly in respect...

  • Page 23
    ... Vice President, Remote Productivity Solutions Business Unit Vice President, Europe, Middle East and Africa Vice President, Security and Assistance Business Unit and Chief Technical Officer Vice President, Americas Vice President, General Counsel and Secretary Executive officers are chosen by...

  • Page 24
    ... and 1996 Summary of Significant Accounting Policies and Notes to Consolidated Financial Statements 2. Financial Statement Schedules The following financial statement schedule of Symantec Corporation for the years ended March 31, 1998, 1997 and 1996 is filed as part of this Form 10-K and should be...

  • Page 25
    ... by reference to Exhibit 10.43 filed with the Registrant's Annual Report on Form 10-K for the year ended March 28, 1997.) 10.46 Master agreement, dated May 18, 1998, between International Business Machines Corporation and Symantec Corporation. (Confidential treatment has been requested with...

  • Page 26
    ... net income (loss) per share - diluted The accompanying Summary of Significant Accounting Policies and Notes to Consolidated Financial Statements are an integral part of these statements. The accompanying Summary of Significant Accounting Policies and Notes to Consolidated Financial Statements are...

  • Page 27
    ... from sales of common stock and other Net cash provided by financing activities Effect of exchange rate fluctuations on cash and cash equivalents Increase in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents 1998 $ 85,089 - - 1997 Year Ended March...

  • Page 28
    ...and Leasehold Business Symantec Corporation ("Symantec" or the "Company") develops, markets and supports utility software for business and personal computing. Symantec's products are currently organized into the following three business units: Security and Assistance; Remote Productivity Solutions...

  • Page 29
    .... (In thousands) Technical support costs included in sales and marketing Advertising expense 1998 $ 38,582 $ 46,814 Year Ended March 31, 1997 1996 $ 35,1 1 1 $ 39,147 $ 34,487 $ 43,015 Certain previously reported amounts have been reclassified to conform to the current presentation format with...

  • Page 30
    ... or less Due after one year through three years 1998 $ 54,334 5,036 $ 59,370 The Company's available-for-sale restricted investments relate to certain collateral requirements for lease agreements associated with Symantec's corporate facilities in Cupertino, California. Fair values of the restricted...

  • Page 31
    ... loss and tax credit carryforwards of various acquired companies that are limited by separate return limitations and under the "change of ownership" rules of Internal Revenue Code Section 382. The change in the valuation allowance for the years ended March 31, 1998, 1997 and 1996 was a net decrease...

  • Page 32
    ... March 31, 1997 11,901 2,859 4,066 Employee Stock Options Range of Exercise Prices Expected life (years) Expected volatility Risk free interest rate 1998 4.84 0.61 5.4 % 1997 4.34 0.63 6.7 % 1996 4.34 0.74 6.0 % 1998 0.50 0.55 5.2 % Employee Stock Purchase Plan 1997 0.50 0.74 5.4 % 1996 0.50 0.60...

  • Page 33
    ..., transferring or directly or indirectly copying into any new Network Associates product or new version of an existing product that has Symantec code, (ii) requiring Network Associates to notify distributors who are still selling versions of PC Medic 97 that have Symantec's code to tell customers...

  • Page 34
    ... a range of products, including new solutions to support IBM platforms. As part of the agreement, IBM has also assigned its existing anti-virus customer and OEM contracts to Symantec and will recommend Norton AntiVirus to its corporate customers worldwide as the anti-virus solution of choice. In...

  • Page 35
    ...CHIEF EXECUTIVE OFFICER) Allowance for doubtful accounts: Year ended March 31, 1996 Year ended March 31, 1997 Year ended March 31, 1998 Date Exhibit 21.01 SUBSIDIARIES OF SYMANTEC $ 4,852 5,016 4,300 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed...

  • Page 36
    ...April 30, 1998, except for Note 17, as to which the date is May 19, 1998, with respect to the consolidated financial statements and schedule of Symantec Corporation included in this Annual Report (Form 10-K) for the year ended March 31, 1998. ERNST & YOUNG LLP San Jose, California June 5, 1998 58...

  • Page 37
    ... International Data Corporation, 1998 Symantec Survey, June 1997 PC Data Retail Report -The market share is based on the Remote Control/Remote Access category as defined by Symantec. The following products are included: Symantec pcANYWHERE, Network Associates Remote Desktop, Travelling Software...