Symantec 2000 Annual Report Download - page 23

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Net Revenues Net revenues increased 26%from $593 million in
fiscal 1999 to $746 million in fiscal 2000. Net revenues increased
11%from $533 million in fiscal 1998 to $593 million in fiscal 1999.
The increase in fiscal 2000 as compared to fiscal 1999 and the
increase in fiscal 1999 as compared to fiscal 1998 were largely due
to increased sales to our corporate customers, introductions of
new products and increased sales outside of North America.
Consumer and Small Business Our Consumer and Small Business
segment represented approximately 43%, 44%and 57%of total net
revenues for fiscal 2000, 1999 and 1998, respectively. Although net
revenues for this segment decreased as a percentage of net rev-
enues, net revenues in absolute dollars increased in fiscal 2000 as
compared to fiscal 1999. This increase was primarily due to out-
breaks of significant viruses, new releases of both new and
existing products and our customers preparing for the Year 2000
rollover. These factors contributed to growth in sales of Norton
AntiVirus, Norton SystemWorks and Norton 2000. We have dis-
continued Norton 2000 and we no longer expect any future sales
from this product.
Net revenues in absolute dollars decreased in the Consumer and
Small Business segment in fiscal 1999 over fiscal 1998, due to
price competition for some of our products. However, we did
experience increased revenue from sales of Norton AntiVirus and
our successful introduction of suite products. These increases
were offset by reductions in net revenues for Norton Utilities. Dur-
ing fiscal 2000, 1999 and 1998, the financial impact of product price
reductions for certain of our principal products was offset by the
increase in the volume of products sold.
Enterprise Solutions and e-Support Our Enterprise Solutions and
e-Support segments represented approximately 49%, 43%and 29%
of total net revenues for fiscal 2000, 1999 and 1998, respectively. Net
revenues increased in fiscal 2000 as compared to fiscal 1999 pri-
marily due to strong demand for our e-Support products, Norton
0{ 23
Period-to-Period
Percentage
Increase (Decrease)
Results of Operations 2000 1999
Year Ended March 31, Compared Compared
2000 1999 1998 to 1999 to 1998
Net revenues 100 %100 %100 %26%11 %
Cost of revenues 16 16 16 25 10
Gross margin 84 84 84 26 11
Operating expenses:
Research and development 15 17 17 7 11
Sales and marketing 41 48 49 7 10
General and administrative 66 7 18(6)
Amortization of goodwill 21—190 *
Amortization of intangibles from acquisitions —— — **
Acquired in-process research and development 15—(84)*
Restructuring and other expenses 11—77 *
Litigation judgment —1—(100 )*
Total operating expenses 66 79 73 5 20
Operating income 18 5 11 386 (49)
Interest income 22 2 (1)3
Interest expense —— — **
Income, net of expense, from sale of
technologies and product lines 15 7 8 161 (9)
Other income (expense), net —— — **
Income before income taxes 35 14 21 209 (26 )
Provision for income taxes 12 6 5 164 22
Net income 23% 8% 16 % 239 ( 41 )
* Percentage change is not meaningful