Symantec 1999 Annual Report Download - page 30

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16
As a result, final operating results for the quarters ended June, September and December 1998 and the related year-to-
date amounts were restated for the adjustments made to our acquisitions of Binary and IBM’s anti-virus business. In
addition, we have reclassified our financial results related to the sales of our electronic forms product line to JetForm
Corporation and our network administration technologies to Hewlett-Packard Corporation from net revenues to
income, net of expense, from sale of technologies and product lines. Although there was no impact to our net income,
we have restated our fiscal 1998 and 1997 financials to reflect these reclassifications from revenue to non-operating
income.
RESULTS OF OPERATIONS
The following table sets forth each item from our consolidated statements of operations as a percentage of net revenues
and the percentage change in the total amount of each item for the periods indicated.
Period-to-Period
Percentage
Increase (Decrease)
1999 1998
Year Ended March 31, Compared Compared
1999 1998 1997 to 1998 to 1997
Net revenues 100% 100% 100% 11% 18%
Cost of revenues 16 16 18 10 5
Gross margin 84 84 82 11 20
Operating expenses:
Research and development 17 17 20 11 3
Sales and marketing 48 49 49 10 18
General and administrative 677 (6) 12
In-process research and development 5-- 1*(100)
Amortization of goodwill and other intangibles 1-- -- *--
Litigation judgment 1-- -- *--
Restructuring and other expenses 1 -- 1*(100)
Total operating expenses 79 73 78 20 11
Operating income 5 11 4 (49) 213
Interest income 2 2 1 3 83
Interest expense -- -- -- -- --
Income, net of expense, from sale of
technologies and product lines 782 (9) 420
Other income (expense), net -- -- -- -- --
Income before income taxes 14 21 7 (26) 269
Provision for income taxes 6 5 122 522
Net income 8% 16% 6%(41) 227
* Percentage change is not meaningful
Net Revenues .
Net revenues increased 11% from $533 million in fiscal 1998 to $593 million in fiscal 1999. Net revenues increased
18% from $453 million in fiscal 1997 to $533 million in fiscal 1998. The increase in fiscal 1999 as compared to fiscal
1998 was largely due to increased sales to our corporate customers, introductions of new products and increased sales
outside of North America. The increase in fiscal 1998 as compared to fiscal 1997 was largely due to sales of Windows
95 and Windows NT versions of our principal products, as well as introduction of new products and growth in sales
outside of North America.
Business Units. During fiscal 1999 and 1998, we experienced increased net revenues over the prior fiscal year from
our Security and Assistance, Remote Productivity Solutions and Internet Tools segments, while our Corporate Sunset
segment had declining revenues.