Symantec 2000 Annual Report Download - page 19

enterprise customers to assist them with the planning, design
and implementation of enterprise security solutions in the anti-
virus and Internet content filtering technologies. In addition, we
provide complete vulnerability and security assessments of enter-
prise customer information systems.
Recent Acquisitions and Divestitures
Acquisitions Since our initial public offering on June 23, 1989, we
have completed acquisitions of 22 businesses. Our recent acquisi-
tions are as follows:
•20/20 Software, Inc. in the March 2000 quarter;
•L-3Network Security’s operations, also in the
March 2000 quarter;
•URLabs in the September 1999 quarter;
•Quarterdeck Corporation in the March 1999 quarter;
•Intel Corporation’s anti-virus business in the
September 1998 quarter;
•Binary Research Limited’s operations in the
June 1998 quarter;
•International Business Machine’s anti-virus
business, also in the June 1998 quarter;
•Fast Track, Inc. in the June 1996 quarter; and
•Delrina Corporation in the December 1995 quarter.
With the exception of Fast Track and Delrina, we accounted for
each of these acquisitions as a purchase and, accordingly, we
have included the operating results of these businesses in our
consolidated financial statements since their respective dates of
acquisition. Fast Track and Delrina were accounted for as pool-
ings of interest. Accordingly, we have restated all financial
information to reflect the combined operations of Delrina; how-
ever, since Fast Track had results of operations that were not
material to our consolidated financial statements, we did not
restate any financial information related to Fast Track. In the past,
we have acquired businesses, including Peter Norton Comput-
ing, Inc. on August 31, 1990. We continue to use the Norton brand
name for products subsequently developed and marketed by us.
Divestitures We divested the Visual Café and substantially all
of the ACT! product lines on December 31, 1999, and have included
their results in our Other business segment. These divestitures
enabled us to focus our efforts and resources on our Internet
security business. These products comprised a significant part of
our business prior to their disposition.
Sales and Marketing,
International Sales and Customer Support
We market our products worldwide utilizing a multi-channel
strategy of direct and indirect sales through independent software
distributors, major retail chains and resellers.
Sales and Marketing We sell our products to individuals and
enterprise users primarily through distributors and resellers. Our
products are available to customers through channels that
include: distributors, retail, mail order, corporate resellers, Inter-
net-based resellers or “e-tailers,” value added resellers, original
equipment manufacturers, educational institutions and Internet
service providers (“ISPs”). We also sell some of our products and
product upgrades through direct mail and over the Internet. We
sell corporate site licenses through our distribution and corporate
reseller channels.
We maintain distribution relationships with major independent
distributors. These distributors stock our products for redistrib-
ution to independent dealers, consultants and other resellers. We
also maintain relationships with major retailers, while marketing
to these retailers through independent distributors. Our sales
force works closely with our major distributor and reseller
accounts to manage the flow of orders, inventory levels and sell-
through to customers. We also work closely with them to manage
promotions and other selling activities.
Our agreements with distributors are generally nonexclusive and
may be terminated by either party without cause. These distribu-
tors are not within our control and are not obligated to purchase
products from us. These distributors also represent other ven-
dors’ product lines.
Our marketing activities include:
•advertising in trade, technical and business publications;
•on-line advertising;
•public relations;
•cooperative marketing with distributors,
resellers and dealers;
•direct mailings to existing and prospective end-users; and
•participation in trade and computer shows.
We typically offer two types of rebate programs: volume incen-
tive rebates and rebates to end-users. Volume incentive rebates
are made available to our distributors and resellers. The distrib-
utor or reseller earns a rebate based upon their purchases and
their sale of products to end-users. Volume incentive rebates are
accrued when revenue is recorded. From time to time, we also
make rebates available to end-users of various products acquired
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