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«12»SYMANTEC CORPORATION«12»SYMANTEC CORPORATION
2004 Annual Report
«12»SYMANTEC CORPORATION
Financial Highlights
*In addition to reporting financial results in accordance with U.S. generally accepted accounting principles, or GAAP, Symantec reports non-GAAP financial results. Non-GAAP gross margin,
operating expenses, net income, and earnings per share exclude acquisition related charges, such as amortization of goodwill and other intangibles, and acquired in-process research and devel-
opment, and certain other identified charges, such as restructuring, site closures and patent settlements, as well as the tax effect of these items, where applicable. Symantec’s management believes
these non-GAAP measures are useful to investors because they provide supplemental information that facilitates comparisons to prior periods. Management uses these non-GAAP measures to eval-
uate its financial results, develop budgets, and manage expenditures. The method Symantec uses to produce non-GAAP results is not computed according to GAAP, is likely to differ from the
methods used by other companies, and should not be regarded as a replacement for corresponding GAAP measures. Investors are encouraged to review the reconciliation of these non-GAAP
financial measures to the comparable GAAP results, which can be found in our earnings press releases, investor presentations, and on the investor relations Web site at www.symantec.com/invest.
Three Year Summary
Fiscal Year Ended
(in millions, except per share amounts) 2004 2003 2002
Reconciliation of Non-GAAP to GAAP Results*:
Revenues $1,870 $1,407 $1,071
Non-GAAP Gross Margin $1,584 $1,186 $ 906
Cost of revenues—amortization of intangibles from acquisitions $(41) $(29) $(30)
GAAP Gross Margin $1,543 $1,157 $ 876
Non-GAAP Operating Expenses $1,007 $ 796 $ 648
Amortization of goodwill from acquisitions $– $ – $ 197
Amortization of intangibles from acquisitions $3 $3 $2
Acquired in-process R&D $4 $5 $–
Restructuring, site closures and other $ 1 $11 $21
Patent settlement $14 $– $–
GAAP Operating Expenses $1,029 $ 815 $ 868
Non-GAAP Net Income $ 411 $ 280 $ 201
Cost of revenues $ (41) (29) (30)
Operating expenses $ (22) (19) (220)
Income tax benefit $23 16 21
GAAP Net Income (Loss) $ 371 $ 248 $ (28)
GAAP Diluted Earnings (Loss) Per Share $ 1.07 $ 0.77 $(0.10)
Non-GAAP Diluted Earnings Per Share$1.18 $0.86 $0.65
Other Information:
Cash Flow from Operating Activities $ 903 $ 599 $ 511
Total Assets $4,456 $3,266 $2,503
Stockholders’ Equity $ 2,426 $1,764 $1,320
Total Employees 5,300 4,344 3,910