Symantec 2004 Annual Report Download - page 24

«22»SYMANTEC CORPORATION
We accounted for each of these acquisitions as a business purchase
and, accordingly, we have included the operating results of these
businesses in our consolidated financial statements from their
respective dates of acquisition. We also have acquired several other
businesses in the past, including Peter Norton Computing, Inc.
on August 31, 1990. We continue to use the Norton brand name
for certain consumer products developed and marketed by us.
In April 2003, we purchased certain assets related to Roxio Inc.’s
GoBack™computer recovery software business. In addition, in
August 2003, we purchased a security technology patent as part
of a legal settlement in Hilgraeve, Inc. v. Symantec Corporation.
DIVESTITURES
In August 2001, we sold assets and transferred liabilities and
employees related to our Web Access Management product line
to PassGo Technologies, Ltd. and agreed to license them the
related technology for a period of four years through August
2005. In December 1999, we licensed substantially all of the
ACT! product line technology to Interact Commerce Corporation
for a period of four years through December 2003.
Product Development, Partnerships, Investments
and Acquisitions
We use a multiple product sourcing strategy that includes:
•internal development;
•licensing from third parties;
•investment in companies; and
•acquisitions of technologies, product lines or companies.
We develop software products that are designed to operate on
a variety of operating systems. We typically develop new products
and enhancements of existing products through focused product
development groups. Each product development group is
responsible for its own design, development, documentation and
quality assurance. Our research and development expenditures
for each of the last three years are further discussed under
“Management’s Discussion and Analysis of Financial Condition
and Results of Operations—Research and Development Expenses.”
Independent contractors are used for aspects of the product
development process. In addition, elements of some of our
products are licensed from third parties.
We invest in companies with emerging technologies and companies
that promote the sale and use of our products and services. These
investments are made in lieu of an acquisition when timing is
inappropriate or when the business models and sectors fall out
of our strategic requirements. We pursue investments, which we
believe will be complementary and can enhance both financial
returns and market growth.
We use strategic acquisitions as necessary to provide certain
technology, people and products for our overall product and
services strategy. We consider both time to market and potential
market share growth when evaluating acquisitions of technologies,
product lines or companies. We have completed a number of
acquisitions of technologies, companies and products in the past,
and have also disposed of technologies and products. We may
acquire and/or dispose of other technologies, companies and
products in the future.
Competition
Our markets are competitive and are subject to rapid changes
in technology. They are influenced by the constant change in
Internet security threats and the strategic direction of major soft-
ware and operating system providers, network equipment and
computer hardware manufacturers, Internet service providers,
application service providers and key application software vendors.
Our competitiveness depends on our ability to deliver products
that meet our customers’ needs by enhancing our existing solutions
and services and offering reliable, scalable and standardized
new solutions on a timely basis. We have limited resources, and
as a result, we must deploy our available resources thoughtfully.
The principal competitive factors in our Consumer Products,
Enterprise Security and Enterprise Administration segments are
quality, employment of the most advanced technology, time
to market, price, reputation, financial stability, breadth of product
offerings, customer support, brand recognition, and sales and
marketing teams. In our Services segment, the principal competitive
factors include technical capability, customer responsiveness,
price, ability to attract and retain talented and experienced
personnel, financial stability, and reputation within the industry.
2004 Annual Report