Symantec 2004 Annual Report Download - page 36

«34»SYMANTEC CORPORATION
Acquired in-process research and development during fiscal 2004
resulted from our acquisitions of ON Technology, PowerQuest and
Nexland. Acquired in-process research and development during
fiscal 2003 resulted from our acquisitions of Riptech, SecurityFocus
and Recourse.
The efforts required to develop the acquired in-process technology
principally relate to the completion of all planning, design, devel-
opment and test activities that are necessary to establish that the
product or service can be produced to meet its design specifications
including features, functions and performance.
We determined the fair value of the acquired in-process technology
for each of the purchases by estimating the projected cash flows
related to these projects and future revenues to be earned upon
commercialization of the products. We discounted the resulting
cash flows back to their net present values. We based the net cash
flows from such projects on our analysis of the respective markets
and estimates of revenues and operating profits related to
these projects.
ON Technology The in-process technology acquired in the
ON Technology acquisition consisted primarily of research and
development related to its next-generation CCM/iCommand
and iPatch products, which enable organizations and service
providers to manage the full life cycle of their computing systems
over corporate networks. We are using this technology in order
to construct a common platform for our Enterprise Administration
segment products.
PowerQuest The in-process technology acquired in the PowerQuest
acquisition consisted primarily of research and development related
to its Virtual Volume Imaging technology, which provides the
capability to recover from server or desktop failures and minimize
system downtime. We are integrating this technology into our
Enterprise Administration segment product offerings.
Nexland The in-process technology acquired in the Nexland
acquisition consisted primarily of research and development
related to a next generation firewall product. We integrated this
technology into our firewall and appliance series of products
within our Enterprise Security segment.
Riptech The in-process technology acquired in the Riptech
acquisition consisted primarily of research and development related
to the fourth generation of its Caltarian technology, which provides
real-time information protection through around-the-clock moni-
toring, analysis and response. We integrated this technology into
our managed security services within our Services segment.
SecurityFocus The in-process technology acquired in the
SecurityFocus acquisition consisted primarily of research and
development related to new versions of DeepSight Threat
Management System and DeepSight Analyzer products, which
are threat management systems that provide early warnings
of attack, as well as countermeasures to defend these attacks.
We integrated this technology into our vulnerability management
products within our Enterprise Security segment.
Recourse The in-process technology acquired in the Recourse
acquisition consisted primarily of research and development
related to new versions of ManHunt, a network intrusion detection
system. We integrated this technology into our intrusion
detection products within our Enterprise Security segment.
2004 Annual Report
ACQUIRED IN-PROCESS RESEARCH AND DEVELOPMENT
Year Ended March 31, % Change % Change
Fiscal 2003 Fiscal 2002
($ in thousands) 2004 2003 2002 to 2004 to 2003
Expenses $3,710 $4,700 – (21)% *
Percentage of total net revenues **–
* Percentage not meaningful