Symantec 2007 Annual Report Download - page 28

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derivative works we create based upon the open source software, and that we license such modifications or
derivative works under the terms of a particular open source license or other license granting third parties certain
rights of further use. If we combine our proprietary software with open source software in a certain manner, we
could, under certain of the open source licenses, be required to release the source code of our proprietary software.
In addition to risks related to license requirements, usage of open source software can lead to greater risks than use
of third party commercial software, as open source licensors generally do not provide warranties or controls on
origin of the software. We have established processes to help alleviate these risks, including a review process for
screening requests from our development organizations for the use of open source, but we cannot be sure that all
open source is submitted for approval prior to use in our products. In addition, many of the risks associated with
usage of open source cannot be eliminated, and could, if not properly addressed, negatively affect our business.
Our software products and website may be subject to intentional disruption that could adversely impact
our reputation and future sales.
Although we believe we have sufficient controls in place to prevent intentional disruptions, we expect to be an
ongoing target of attacks specifically designed to impede the performance of our products. Similarly, experienced
computer programmers may attempt to penetrate our network security or the security of our website and
misappropriate proprietary information or cause interruptions of our services. Because the techniques used by
such computer programmers to access or sabotage networks change frequently and may not be recognized until
launched against a target, we may be unable to anticipate these techniques. Our activities could be adversely
affected and our reputation and future sales harmed if these intentionally disruptive efforts are successful.
Increased customer demands on our technical support services may adversely affect our relationships with
our customers and our financial results.
We offer technical support services with many of our products. We may be unable to respond quickly enough to
accommodate short-term increases in customer demand for support services. We also may be unable to modify the
format of our support services to compete with changes in support services provided by competitors or successfully
integrate support for our customers. Further customer demand for these services, without corresponding revenues,
could increase costs and adversely affect our operating results.
We have outsourced a substantial portion of our worldwide consumer support functions to third party service
providers. If these companies experience financial difficulties, do not maintain sufficiently skilled workers and
resources to satisfy our contracts, or otherwise fail to perform at a sufficient level under these contracts, the level of
support services to our customers may be significantly disrupted, which could materially harm our relationships
with these customers.
Accounting charges may cause fluctuations in our quarterly financial results.
Our financial results have been in the past, and may continue to be in the future, materially affected by non-
cash and other accounting charges, including:
• Amortization of intangible assets, including acquired product rights
• Impairment of goodwill
• Stock-based compensation expense
• Restructuring charges
• Impairment of long-lived assets
For example, in connection with our acquisition of Veritas, we have recorded approximately $2.8 billion of
acquired product rights and other intangible assets and $8.6 billion of goodwill. We have recorded and will continue
to record future amortization charges with respect to a portion of these intangible assets and stock-based
compensation expense related to the stock options to purchase Veritas common stock assumed by us. In addition,
we will evaluate our long-lived assets, including property and equipment, goodwill, acquired product rights, and
other intangible assets, whenever events or circumstances occur which indicate that these assets might be impaired.
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