Symantec 2007 Annual Report Download - page 47

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Consumer Products revenues increased in fiscal 2007 as compared to fiscal 2006 primarily due to an increase
of $293 million in revenue from our Norton Internet Security products. This increase was partially offset by
aggregate decreases in revenue from our Norton AntiVirus and Norton System Works
TM
products of $100 million.
These decreases resulted from our customers’ continued migration to the Norton Internet Security products, which
offer broader protection to address the rapidly changing threat environment. Our electronic orders include OEM
subscriptions, upgrades, online sales, and renewals. Revenue from electronic orders (which includes sales of our
Norton Internet Security products and our Norton AntiVirus products) grew by $221 million in fiscal 2007 as
compared to fiscal 2006.
Consumer Products revenues increased in fiscal 2006 as compared to fiscal 2005 primarily due to an increase
of $156 million in revenue from our Norton Internet Security products. The majority of the increase in revenue was
booked through electronic orders. This increase was partially offset by the change in our consumer product revenue
recognition model for our 2006 consumer products that include content updates. Beginning in the December 2005
quarter, as a result of increases in future subscription pricing for our 2006 consumer products that include content
updates, revenue for these products is recognized ratably over the term of the subscription upon sell through to end-
users. This change in our product revenue recognition model resulted in a 7% reduction in Consumer Products
revenues for fiscal 2006. In addition, revenue from our Norton AntiVirus products decreased $67 million as our
customers migrated to the Norton Internet Security products. Revenue from our electronic distribution channel
grew by $168 million in fiscal 2006 as compared to fiscal 2005. We believe that, in addition to the factors noted
above, the lower growth rate in our Consumer Products segment was attributable to a reduced threat environment in
fiscal 2006 compared to fiscal 2005. In addition, during fiscal 2006, pricing for subscriptions increased while
pricing in retail and online stores remained consistent or decreased.
Security and Data Management Segment
2007 2006 2005
Year Ended March 31,
($ in thousands)
Security and Data Management revenues ............. $2,004,690 $1,720,646 $1,199,406
Percentage of total net revenues .................... 39% 41% 46%
Period over period increase ....................... 284,044 521,240
17% 43%
Security and Data Management revenues increased in fiscal 2007 as compared to fiscal 2006 primarily due to
the inclusion of the storage and availability products obtained through our acquisition of Veritas for the full twelve
months in the 2007 period compared to nine months in the 2006 period. These products contributed $151 million of
Security and Data Management revenue in the June 2006 quarter for which there was no comparable revenue in the
June 2005 quarter. In addition the purchase accounting adjustment, discussed under “Total Net Revenues” above,
contributed $88 million (cumulatively) in the September 2006, December 2006, and March 2007 quarters as
compared to the comparable quarters of the prior year. In addition, revenues increased $40 million in fiscal 2007 as a
result of acquisitions, excluding Veritas, for which there was not a full twelve months of revenue or no comparable
revenue in fiscal 2006.
Security and Data Management revenues increased in fiscal 2006 as compared to fiscal 2005 primarily due to
the inclusion of the storage and availability products obtained through our acquisition of Veritas. These products
contributed $410 million of Security and Data Management revenues during fiscal 2006 for which there was no
comparable revenue in fiscal 2005. In addition, revenue increased $110 million as a result of growth from our
enterprise security products.
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