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Selected Quarterly Financial Data
We have a 52/53-week fiscal accounting year. Accordingly, we have presented quarterly fiscal periods, each
comprised of 13 weeks, as follows:
Mar. 31,
2007
Dec. 31,
2006
(e)
Sep. 30,
2006
(e)
Jun. 30,
2006
(e)
Mar. 31,
2006
Dec. 31,
2005
Sep. 30,
2005
Jun. 30,
2005
Fiscal 2007 Fiscal 2006
(In thousands, except net income (loss) per share)
Net revenues . . . . . . . . . . . $1,357,217 $1,315,873 $1,260,408 $1,265,868 $1,238,560 $1,149,026 $1,055,864 $699,942
Gross profit . . . . . . . . . . . . 1,050,954 1,005,370 960,007 967,209 955,406 880,548 742,422 583,147
Acquired in-process research
and development
(a)
...... ————1,100 — 284,000 —
Restructuring
(b)
. . . . . . . . . . 50,758 — 6,220 13,258 4,426 15,566 1,452 3,474
Patent settlement
(c)
....... ———————2,200
Integration
(d)
. . . . . . . . . . . 744 — — — 587 2,185 5,253 7,901
Operating income (loss) . . . . 76,241 159,038 140,391 144,072 180,333 119,661 (258,347) 232,318
Net income (loss) . . . . . . . . 60,895 116,769 126,181 100,535 118,813 90,734 (251,328) 198,633
Net income (loss) per
share — basic . . . . . . . . . $ 0.07 $ 0.13 $ 0.13 $ 0.10 $ 0.11 $ 0.08 $ (0.21) $ 0.28
Net income (loss) per
share — diluted . . . . . . . . $ 0.07 $ 0.12 $ 0.13 $ 0.10 $ 0.11 $ 0.08 $ (0.21) $ 0.27
(a)
In fiscal 2006, we wrote off $284 million and $1 million of IPR&D in connection with our acquisitions of Veritas
and BindView, respectively.
(b)
In fiscal 2007, we recorded $51 million of restructuring costs related to our 2007 cost savings initiative in
conjunction with our $200 million annual cost savings plan announced in January 2007. The remaining
$19 million of restructuring costs in fiscal 2007 are related to executive severance and to severance, associated
benefits, and outplacement services for the termination of 323 redundant employees. In fiscal 2006, we recorded
$25 million of restructuring costs, of which $18 million related to severance, associated benefits, and
outplacement services and $7 million related to excess facilities. See Note 12 of the Notes to Consolidated
Financial Statements.
(c)
During fiscal 2006, we recorded patent settlement costs and entered into a cross-licensing agreement with
Altiris, Inc. For more information, see Note 4 of the Notes to Consolidated Financial Statements.
(d)
We recorded integration costs in connection with our acquisition of Veritas in July 2005 and our pending
acquisition of Altiris in April 2007. For more information, see Notes 3 and 17 of the Notes to Consolidated
Financial Statements.
(e)
The amounts for the first three quarters of fiscal 2007 reflect adjustments as a result of the adoption of SAB 108
in the fourth quarter of fiscal 2007. For more information, see Summary of Significant Accounting Policies
included in the Consolidated Financial Statements.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Not applicable.
Item 9A. Controls and Procedures
(a) Evaluation of Disclosure Controls and Procedures
The SEC defines the term “disclosure controls and procedures” to mean a company’s controls and other
procedures that are designed to ensure that information required to be disclosed in the reports that it files or submits
under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the
SEC’s rules and forms. “Disclosure controls and procedures” include, without limitation, controls and procedures
designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under
58