Symantec 2004 Annual Report Download - page 62

«60»SYMANTEC CORPORATION
PassGo has an option to purchase the technology at a price start-
ing at $18.8 million and declining to $3.3 million over a four-year
period through August 2005. As of March 31, 2004, PassGo had
not exercised their option to purchase.
ACT! Product Line On December 31, 1999, we licensed
substantially all of the ACT! product line technology to Interact
Commerce Corporation for a period of four years through
December 2003. In consideration for the license, Interact was
required to pay us quarterly royalty payments. Because the
royalties were not guaranteed and the quarterly amounts to be
received were not determinable until earned, we recognized
these royalties as payments were due. At the end of the four-year
period, Interact had an exclusive option to purchase the licensed
technology from us for $60 million less all royalties paid to us
to date. In December 2003, Interact exercised its option and
we transferred the technology to them.
2004 Annual Report
INCOME, NET OF EXPENSE, FROM SALE OF TECHNOLOGIES AND PRODUCT LINES
(In thousands) Year Ended March 31,
2004 2003 2002
ACT! product line $9,750 $10,500 $15,500
Web Access Management product line (203) (3,622) 36
Income, net of expense, from sale of technologies and product lines $9,547 $ 6,878 $15,536
Note 4. Goodwill, Acquired Product Rights and
Other Intangible Assets
With the adoption of SFAS No. 142, we ceased the amortization
of goodwill and recharacterized acquired workforce-in-place (and
the related deferred tax liability) as goodwill on April 1, 2002.
Accordingly, there was no amortization of goodwill and acquired
workforce-in-place during fiscal 2004 and 2003.
The following table presents a reconciliation of previously reported
net income (loss) and net income (loss) per share to the amounts
adjusted for the exclusion of the amortization of goodwill and
acquired workforce-in-place, net of the related income tax effect:
(In thousands, except per share data) Year Ended March 31,
2004 2003 2002
Net income (loss), as reported $370,619 $ 248,438 $(28,151)
Amortization of goodwill and acquired workforce-in-place, net of tax benefit
of $0, $0 and $2,745, respectively –– 194,061
Net income, as adjusted $370,619 $248,438 $165,910
Net income (loss) per share—basic, as reported $ 1.21 $ 0.85 $ (0.10)
Amortization of goodwill and acquired workforce-in-place, net of tax benefit ––0.68
Net income per share—basic, as adjusted 1.21 0.85 0.58
Effect of dilutive securities (0.14) (0.08) (0.04)
Net income per share—diluted, as adjusted $ 1.07 $ 0.77 $ 0.54
Shares used to compute net income (loss) per share—basic, as adjusted 305,985 290,790 287,208
Shares issuable from assumed conversion of options 18,421 15,496 15,186
Shares issuable from assumed conversion of convertible subordinated notes 35,149 35,150 15,160
Shares used to compute net income per share—diluted, as adjusted 359,555 341,436 317,554
For fiscal year 2004, 2003, and 2002 net income per share
(diluted), as adjusted is calculated using the if-converted method.
Under this method, the numerator excludes the interest expense
from the 3% convertible subordinated notes, net of income tax,
of $14 million for fiscal year 2004 and 2003 and $6 million for
fiscal year 2002.