Symantec 2004 Annual Report Download - page 22

«20»SYMANTEC CORPORATION
2004 Annual Report
In Fiscal 2004, three customers accounted for more than 10%
of our total net revenues. In fiscal 2003 and 2002, two customers
accounted for more than 10% of our total net revenues.
Our marketing activities include:
•advertising in consumer, trade, technical and
business publications;
•on-line advertising;
•radio broadcast advertising;
•public relations;
•production of brochures, sales tools, multi-media product
demonstrations, packaging and other collateral;
•targeted customer communications through the Symantec
Web site, including regularly scheduled web-based seminars
and on-line newsletters;
•cooperative marketing with distributors, resellers
and industry partners;
•direct mailings and e-mailings to existing end-users
and prospects;
•the use of tools such as trialware and Symantec™Security
Check, a web-based tool for users to assess the security
vulnerabilities on their computers (consumer only);
•participation in focused trade and computer shows, sponsor-
ship of industry analyst conferences, and execution of Symantec
road shows, seminars and user group conferences; and
•primary market research to understand evolving customer
needs and buying behaviors.
For our consumer products, we typically offer two types of rebate
programs within most countries: volume incentive rebates to channel
partners and promotional rebates to end-users. The distributor
or reseller earns a volume incentive rebate primarily based upon
their sale of products to end-users. From time to time, we also
make rebates available to individual users of various products
acquired through major retailers. We regularly offer upgrade
rebates to existing customers purchasing a new version of a product.
Both volume incentive rebates and end-user rebates are accrued
as an offset to revenue when revenue is originally recorded.
International Sales
Revenues from sales outside of the United States represented
52%, 49% and 47% of our net revenues during fiscal 2004, 2003
and 2002, respectively. Our international revenues consisted of
sales primarily in the Europe, Middle East and Africa, or EMEA,
region and sales from this region represented 33%, 30% and 27%
of our net revenues during fiscal 2004, 2003 and 2002, respectively.
The majority of our net revenues from EMEA are derived from sales
by affiliates of our major United States distributors. Additionally,
we sell our products through authorized distributors, which may
be restricted to specified territories. For most of our consumer
products, we translate the documentation, software and packaging
into the local language and prepare marketing programs for each
local market.
We have marketing offices in Australia, Austria, Belgium, Brazil,
Canada, China, Czech Republic, Denmark, Finland, France, Germany,
Greece, Hong Kong, Hungary, India, Ireland, Israel, Italy, Japan,
Malaysia, Mexico, the Netherlands, New Zealand, Norway, Poland,
Portugal, Russia, Saudi Arabia, Singapore, South Africa, South Korea,
Spain, Sweden, Switzerland, Taiwan, Turkey, United Arab Emirates
and the United Kingdom. These local offices facilitate our marketing
and distribution in international markets. Our international operations
are subject to various risks common to international operations,
including but not restricted to:
•government regulations;
•export and import restrictions;
•currency fluctuations;
•repatriation restrictions; and
•in some jurisdictions, reduced protection for our copyrights
and trademarks.
Symantec Security Response
Symantec Security Response is a team of dedicated intrusion experts,
security engineers, virus hunters and global technical support teams
that work in tandem to provide extensive coverage for enterprises
and consumers. Symantec Security Response provides customers
with comprehensive, global, 24x7 Internet security expertise to
guard against today’s blended Internet threats, which are threats
that are multifaceted in their operating methods and effects.
Symantec Security Response addresses blended threats by providing
a thorough analysis of Internet security threats, evaluating how
threats work together, then offering recommendations on protection.
This allows us to respond to complex security threats in a more
holistic, preventive manner. A Symantec Security Response analysis
can show how multiple threats work together, how this could
impact a customer, and how to protect against these threats.