Symantec 1998 Annual Report Download - page 13

SYMANTEC CORPORATION
SYMANTEC CORPORATION 1312
Norton Uninstall Deluxe is designed to
add and remove programs and files from a
user’s hard drive. InstallGuard, a feature of
Norton Uninstall Deluxe, provides a one-
button “undo” of program installations,
restoring a computer’s Windows registry
and hard drive to its original condition
prior to the installation. The program’s
system cleanup tools ensure that registry,
files, icons and other system options are
set for optimum performance. Norton
Uninstall Deluxe runs on the Windows
95 and Windows NT operating systems.
Norton Utilities is a set of “tools” designed
to address system-level operations. In
addition, Norton Utilities finds and
repairs problems with Windows 95 appli-
cations and includes an interface to
Norton Web Services, a paid subscription
service that locates and installs patches,
updates and drivers specific to a user’s
installed hardware and software. The pro-
gram also offers crash protection, limited
virus detection and repair and several
new optimization utilities to accelerate a
computer’s performance. Norton Utilities
runs on the Windows, Windows 95,
Windows NT, MS-DOS, Macintosh and
Power Macintosh operating systems.
Norton Web Services (“NWS”) is
designed to deliver an online subscription-
based service site that downloads Norton
technology to Windows 95 users via an
Internet connection. NWS features
Symantec’s LiveUpdate Pro, a service that
locates and installs patches, updates and
drivers specific to a user’s installed hard-
ware and software. NWS was released by
Symantec in December 1997. As such, this
service did not generate material revenues
in any fiscal years presented. The Company
believes this service will generate increas-
ing revenue amounts in future periods,
but there can be no assurance this product
will be commercially successful.
Norton Your Eyes Only is designed to
encrypt and decrypt private computer
files, enable users to share files without
compromising security, lock access to a
personal computer when the personal
computer is idle and prevent booting by
unauthorized users. The program runs
on the Windows 95 and Windows NT
operating systems.
Remote Productivity Solutions
The Remote Productivity Solutions
business unit focuses on helping remote
professionals remain productive –
anywhere, anytime. This business unit
focuses on customer needs to access infor-
mation, applications and data from any
location. Net revenues from this business
unit comprised approximately 40% of
total net revenues for the fiscal year ended
March 31, 1998 and approximately 35%
of total net revenues for the fiscal years
ended March 31, 1997 and 1996.
ACT! is designed to combine a customiz-
able database, calendar and activity
management, automatic history logging,
customizable reporting and communica-
tions via mail merge, telephone, email and
fax into a single product. The product pro-
vides extensive data sharing support for
Local Area Network (“LAN”) teams and
remote database synchronization for mobile
users and small mobile teams. ACT! runs
on the Windows, Windows 95, Windows
NT, Windows CE, MS-DOS, Macintosh,
Newton and Psion operating systems.
pcANYWHERE is designed to offer reli-
able, fast and flexible PC-to-PC remote
computing via serial or modem connec-
tions. pcANYWHERE enables the user
to control one PC remotely from the
keyboard of another PC. The offsite
remote PC, laptop or PC terminal con-
trols the operation of the distant host
PC. In addition to enabling a remote
user to run a distant PC, pcANYWHERE
optionally allows users at the host (dis-
tant) machine to view the operations
being conducted from the remote site.
Security and Assistance
The Security and Assistance business unit
is dedicated to being indispensable in
customers’ daily use of computers by
increasing productivity and keeping
computers safe and reliable. Net revenues
from this business unit comprised approxi-
mately 50% of total net revenues for the
fiscal years ended March 31, 1998 and
1997 and 45% of total net revenues for
the fiscal year ended March 31, 1996.
Norton AntiVirus and Norton
AntiVirus for Macintosh run in a com-
puter’s background and are designed to
protect against, detect and eliminate com-
puter viruses. The software covers multiple
sources of infection, including the Inter-
net, floppy disks, email attachments, shared
files and networks. The software enables
the user to download, via Symantec’s
LiveUpdate functionality, new virus defi-
nitions created by the Symantec AntiVirus
Research Center (SARC).
™The software
runs under the Windows, Windows 95,
Windows NT, MS-DOS, Macintosh and
Power Macintosh operating systems. The
Norton AntiVirus product line also includes
support for Lotus Notes (Norton
AntiVirus for Notes) and Novell NetWare
(The Norton AntiVirus NetWare).
Norton CrashGuard Deluxe runs in a
computer’s background and is designed to
detect and fix a range of computer prob-
lems, including computer crashes and hard
disk fragmentation. When the program
detects a crash, it allows the computer
user to unfreeze the crash and save any
open files. The program also optimizes
computer performance and provides basic
virus detection and elimination. Norton
CrashGuard Deluxe includes an interface
to Norton Web Services, a paid subscrip-
tion service that locates and installs patches,
updates and drivers specific to a user’s
installed hardware and software. The
program runs on the Windows 95 and
Windows NT operating systems.
The software enables the user to run
Windows, Windows 95, Windows NT,
Windows CE or MS-DOS applications
remotely, transfer files and perform other
data operations.
WinFax PRO is designed to enable users
to send, receive and manage faxes. WinFax
PRO provides background faxing, which
allows users to continue working on other
applications while sending or receiving a
fax via the Internet or a fax machine.
WinFax PRO also provides enhanced file
compression, increasing the speed at
which faxes are transmitted. Other fea-
tures include a paging function, which
enables the computer to page a user
upon receipt of an incoming fax or voice
message, and a “call identify” function,
which allows a user to view an incoming
fax or phone number. WinFax PRO runs
on the Windows, Windows 95 and
Windows NT operating systems.
Internet Tools, Royalties and Other
The Internet Tools, Royalties and Other
business unit includes products providing
an easy-to-use Java development environ-
ment, as well as revenue streams from the
sale to third-party computing companies
of certain of the Company’s software
product lines and technologies, and
revenues from products nearing the end
of their life cycle. Net revenues from this
business unit comprised approximately
10%, 15% and 20% of total net revenues
for the fiscal years ended March 31, 1998,
1997 and 1996, respectively.
Symantec Visual Café (Database
Development Edition) is designed to
provide a solution for building business-
critical Java applications with database
connectivity. The program includes a
forms designer for drag-and-drop Graphical
User Interface design and dbAWARE
project wizards that walk the user through
defining a data source, adding compo-
nents and the interactions between them.
The program also builds Java applications
and connects to multiple databases with-
out writing source code. The Database
Development Edition includes 100+
JavaBeans (series of pre-written source
code) and 20 database templates, and
connects to over 30 commercially available
databases via industry standard protocols
(“JDBC” or “ODBC”).
Symantec Visual Café (Professional
Development Edition) is designed to
provide a Java Integrated Development
Environment solution for creating Java
applications and JavaBeans with features
geared toward professional Java developers.
Advanced power tools include native
compilation, advanced Java Archive tools,
Java Development Kit 1.1.5 support and
Visual Page. In addition, to facilitate
easier discovery of problems with source
code, the program supports “debugging”
directly within a Web browser.
Symantec Visual Café (Web
Development Edition) is designed to
provide a Rapid Application Java
Development and an HTML Web author-
ing solution that provides support for
Java Development Kit 1.1.5 and JavaBeans.
The program includes a drag-and-drop
interface, professional templates and Java
applet and JavaBeans libraries. This
product did not generate material revenues
in any fiscal years presented. The Company
believes this product will generate increas-
ing revenue amounts in future periods,
but there can be no assurance this prod-
uct will be commercially successful. The
Visual Café products run on Windows 95,
Windows NT and Macintosh operating
systems. The Java program code devel-
oped with these products, however, can
be deployed on any platform that sup-
ports a Java Virtual Machine compliant
with Sun Microsystems’ JDK standards.
SALES AND MARKETING,
INTERNATIONAL SALES AND
CUSTOMER SUPPORT
Symantec markets its products world-
wide, utilizing a multi-channel strategy
of direct and indirect sales through inde-
pendent software distributors, major
retail chains and resellers.
Sales and Marketing
Symantec sells its products to both indi-
viduals and corporate users primarily
through distributors and resellers.
Symantec products are made available to
customers through channels that include:
distributors, retail, mail order, corporate
resellers, value added resellers (“VARs”),
original equipment manufacturers
(“OEMs”), partnerships, education, con-
sulting, etc. Symantec also sells product
upgrades and certain of its products
through the use of direct mail and over
the Internet. Symantec maintains distribu-
tion relationships with major independent
distributors. These distributors stock
Symantec’s products for redistribution to
independent dealers, consultants and other
resellers. Symantec also maintains relation-
ships with major retailers while marketing
to these retailers through independent
distributors. (See further discussion in
Item 7: Management’s Discussion and
Analysis of Financial Condition and
Results of Operations - Retail Distribution
Channel; New Distribution Channels.)
The Company’s sales force works
closely with its major distributor and
reseller accounts to manage the flow of
orders, inventory levels and sell-through
to customers, as well as working closely
with them to manage promotions and
other selling activities. The Company also
sells volume license programs (corporate
site licenses) through its distribution and
corporate reseller channels. (See further
discussion in Item 7: Management’s
Discussion and Analysis of Financial