Symantec 1998 Annual Report Download - page 12

SYMANTEC CORPORATION 11
GENERAL
Symantec Corporation (“Symantec” or the
“Company”) is a world leader in utility
software for business and personal com-
puting. Symantec’s business strategy is to
satisfy customer needs by developing and
marketing products across multiple
operating platforms (currently those of
Microsoft Corporation and Apple
Computer, Inc.) that make customers
productive and keep their computers safe
and reliable – anywhere, anytime.
The Company’s predecessor, C&E
Software, Inc., a California corporation,
and that predecessor’s operating subsi-
diary, Symantec Corporation, a California
corporation, were formed in September
1983 and March 1982, respectively. The
Company was incorporated in Delaware in
April 1988 in connection with the Septem-
ber 1988 reincorporation of the Company’s
predecessor and its operating subsidiary
into a single Delaware corporation.
Since Symantec’s initial public offer-
ing on June 23, 1989, the Company has
completed acquisitions of 15 companies.
Companies acquired during the past five
years include: Fast Track, Inc. (“Fast
Track”) on May 28, 1996; Delrina Corpo-
ration (“Delrina”) on November 22, 1995;
Intec Systems Corporation (“Intec”) on
August 31, 1994; Central Point Software,
Inc. (“Central Point”) on June 1, 1994;
SLR Systems, Inc. (“SLR”) on May 31, 1994;
Fifth Generation Systems, Inc. (“Fifth
Generation”) on October 4, 1993; and
Contact Software International, Inc.
(“Contact”) on June 2, 1993. The Company
acquired Peter Norton Computing, Inc.
(“Norton”) on August 31, 1990 and con-
tinues to use the Norton brand name for
products subsequently developed and
marketed by Symantec.
All of these acquisitions were account-
ed for as poolings of interests. Accordingly,
all financial information has been restated
to reflect the combined operations of
these companies and Symantec, with the
exception of Fast Track, Intec and SLR,
each of which had results of operations
that were not material to Symantec’s
consolidated financial statements.
During fiscal 1997, in a move to focus
the Company’s product offerings on spe-
cific customer needs, Symantec sold its
FormFlow product line, acquired as part
of the Delrina acquisition, to JetForm
Corporation (“JetForm”) and sold the
assets and technology of its networking
business unit to the Hewlett-Packard
Company (“Hewlett-Packard”). See fur-
ther discussion in Item 7: Management’s
Discussion and Analysis of Financial
Condition and Results of Operations.
Symantec has a 52/53-week fiscal account-
ing year. Accordingly, all references as of
and for the periods ended March 31, 1998,
1997 and 1996 reflect amounts as of and for
FORWARD-LOOKING STATEMENTS
The following discussion contains forward-looking statements that are subject to risks
and uncertainties. There are several important factors that could cause actual results
to differ materially from those anticipated by the forward-looking statements con-
tained in the following discussion. Readers should pay particular attention to the risk
factors set forth in this section and in the section of this report entitled “Management’s
Discussion and Analysis of Financial Condition and Results of Operations.”
Nothing in this report shall impose upon Symantec or any person a duty to update
any forward-looking statement.
This document contains reference to trademarks and trade names of other companies.
the periods ended April 3, 1998, March 28,
1997and March 29, 1996, respectively.
The fiscal accounting year ended April 3,
1998 comprised 53 weeks of operations.
PRODUCTS AND SERVICES
Symantec’s products, comprising utility
software for business and personal com-
puting, are currently organized into the
following three business units: Security and
Assistance; Remote Productivity Solutions;
and Internet Tools, Royalties and Other.
The following table summarizes Symantec’s
principal products by business unit:
PRINCIPAL PRODUCTS
Security and Assistance
Norton AntiVirus®
Norton AntiVirus®for Macintosh
Norton CrashGuard™Deluxe
Norton Uninstall™Deluxe
Norton Utilities®
Norton Web Services™
Norton Your Eyes Only®
Remote Productivity Solutions
ACT!®
pcANYWHERE®
WinFax PRO™
Internet Tools, Royalties
and Other
Symantec Visual Café™
(Database Development Edition)
Symantec Visual Café™
(Professional Development Edition)
Symantec Visual Café™
(Web Development Edition)
Most of Symantec’s products that are
currently being developed and marketed
feature LiveUpdate,
™which enables the
user, free of cost, to download application
bug-fix patches via an Internet connection
to Symantec’s corporate website.
Financial Contents
Part One Item 1: Business 11
Item 2: Properties 18
Item 3: Legal Proceedings 18
Item 4: Submission of Matters to a Vote of Security Holders 18
Part Two Item 5: Market for Registrant’s Common Equity 19
and Related Stockholder Matters
Item 6: Selected Financial Data 20
Item 7: Management’s Discussion and Analysis of Financial 21
Condition and Results of Operations
Item 8: Financial Statements and Supplementary Data 31
Item 9: Changes in and Disagreements with Accountants 31
on Accounting and Financial Disclosure
Part Three Item 10: Directors and Executive Officers of the Registrant 32
Item 11: Executive Compensation 33
Item 12: Security Ownership of Certain Beneficial Owners 33
and Management
Item 13: Certain Relationships and Related Transactions 33
Part Four Item 14: Exhibits, Financial Statement Schedules and 34
Reports on Form 8-K
Signatures 56