Symantec 2001 Annual Report Download - page 22

Net Revenues Net revenues increased 14% from $746 million in fiscal
2000 to $854 million in fiscal 2001. Net revenues increased 26% from
$593 million in fiscal 1999 to $746 million in fiscal 2000. The increase
in fiscal 2001 as compared to fiscal 2000 and the increase in fiscal 2000
as compared to fiscal 1999 were largely due to increased sales to our
enterprise customers, introductions of new products and increased
sales outside of North America. During the December 2000 quarter,
we acquired AXENT, which contributed approximately $42 million to
our total net revenues for fiscal 2001.
Consumer Products Our Consumer Products segment represented
approximately 39%, 43% and 45% of total net revenues for fiscal 2001,
2000 and 1999, respectively. Although net revenues for this segment
decreased as a percentage of net revenues, net revenues in absolute
dollars increased in fiscal 2001 as compared to fiscal 2000. Despite the
slow-down in the personal computer sales environment, the absolute
dollars increased primarily due to the increase in customer focus on
protecting their home computers from Internet related attacks. This
factor contributed to growth in sales of our Norton Internet Security
product, which was introduced in the March 2000 quarter.
Net revenues in absolute dollars increased in the Consumer Products
segment in fiscal 2000 over fiscal 1999. This increase was primarily due
to increased sales of our antivirus products following outbreaks of
significant viruses, new releases of both new and existing products and
our customers preparing for the Year 2000 rollover. These factors con-
tributed to growth in sales of Norton AntiVirus, Norton SystemWorks
and Norton 2000.We have since discontinued our Norton 2000 product.
During fiscal 2001, 2000 and 1999, the financial impact of product
price reductions for certain of our products was offset by the increase
in the volume of products sold.
Enterprise Security and Administration Our Enterprise Security and
Administration segments represented approximately 60%, 51% and
44% of total net revenues for fiscal 2001, 2000 and 1999, respectively.
Net revenues increased in fiscal 2001 as compared to 2000 due to the
continued strength of our virus protection solution, growth from our
vulnerability management and intrusion detection solutions, as a
result of the AXENT acquisition, and the new release of our Ghost
Corporate Edition product.
Net revenues increased in fiscal 2000 as compared to fiscal 1999 prima-
rily due to strong demand for our Enterprise Administration products
Ghost Corporate Edition and pcAnywhere and increases due to virus
outbreaks and Year 2000 preparation.
Services and Other Our Services and Other segments represented
approximately 1%, 6% and 11% of total net revenues for fiscal 2001,
2000 and 1999, respectively. The decrease in fiscal 2001 and 2000 is
due to our divestiture of the Visual Café and ACT! product lines in
December 1999, which is included in the Other segment.
symantec 2001__20
Period-to-Period
Percentage
Increase (Decrease)
2001 2000
Year Ended March 31 Compared Compared
2001 2000 1999 to 2000 to 1999
Net revenues 100 % 100 % 100 % 14 % 26%
Cost of revenues 15 16 16 2 25
Gross margin 85 84 84 17 26
Operating expenses:
Research and development 15 15 17 17 7
Sales and marketing 41 41 48 14 7
General and administrative 5 6 6 6 18
Amortization of goodwill 8 2 1 299 190
Amortization of intangibles from acquisitions —— — **
Acquired in-process research and development 3 1 5 419 ( 84)
Restructuring and other expenses —1 1 (59) 77
Litigation judgment —— 1—(100)
Total operating expenses 72 66 79 27 5
Operating income 13 18 5 (19) 386
Interest income 4 2 2 148 (1 )
Interest expense —— — **
Income, net of expense, from sale of
technologies and product lines 2 15 7 (81) 161
Other income (expense), net (3) —— **
Income before income taxes 16 35 14 (45) 209
Provision for income taxes 9 12 6 (12) 164
Net income 7 % 23 % 8 % (62) 239
* Percentage change is not meaningful