Symantec 2008 Annual Report Download - page 119

increases in our consumer products revenue and services offerings of $181 million and $92 million, respectively,
due to continued growth in demand. The segment discussions that follow further describe the revenue increases.
These increases are partially offset by the effects of the increased flexibility in contract terms and the combination
of our buying programs discussed above.
Content, subscriptions, and maintenance revenues
2008 2007 2006
Fiscal
($ in thousands)
Content, subscriptions, and maintenance revenues ....... $4,561,566 $3,917,572 $2,873,211
Percentage of total net revenues .................... 78% 75% 69%
Period over period change ........................ $ 643,994 $1,044,361
16% 36%
Beginning with the release of our 2006 consumer products that include content updates in the December 2005
quarter, we recognize revenue related to these products ratably. As a result, this revenue has been classified as
Content, subscriptions, and maintenance beginning in the December 2005 quarter. In addition, as noted above,
increased flexibility in contract terms and the combination of our buying programs in the December 2006 quarter
have impacted revenue recognition. These changes caused a larger portion of revenue associated with contracts to
be classified as Content, subscriptions, and maintenance revenue, which is subject to deferral, instead of Licenses
revenue, which is generally recognized immediately, as discussed above in “Total Net Revenues.”
Content, subscriptions, and maintenance revenues increased in fiscal 2008 as compared to fiscal 2007
primarily due to an increase of $394 million in revenue related to enterprise products and services, excluding
acquired Altiris products. This increase in enterprise product and services revenue was largely attributable to higher
amortization of deferred revenue, for the reasons discussed above in “Total Net Revenues.” In addition, Content,
subscriptions, and maintenance revenues increased $82 million from new sales of products from our acquisition of
Altiris for which there is no comparable revenue in the prior period. The increase is also due to a favorable foreign
currency impact.
Content, subscriptions, and maintenance revenues increased in fiscal 2007 as compared to fiscal 2006
primarily due to the new sales of the storage and availability products and services from our acquisition of Veritas
for the full twelve months in the 2007 period compared to nine months in the 2006 period. These products and
services contributed $250 million of Content, subscriptions, and maintenance revenues in the June 2006 quarter for
which there was no comparable revenue in the June 2005 quarter. In addition, in fiscal 2007, Content, subscriptions,
and maintenance revenue related to our enterprise products increased $271 million due to the fact that the amount of
revenue recognized in the comparable 2006 period was lower as a result of the purchase accounting adjustment
discussed under “Total Net Revenues” above. Revenue related to our consumer products increased $179 million as
compared to the 2006 period due primarily to growth in Norton Internet Security products and online revenues due
to growth in the use of the Internet, and increased awareness and sophistication of security threats. Enterprise
products and services, excluding Veritas-related products and services, increased $309 million as a result of growth
in our maintenance renewals due to an increasing installed base, increased demand for our service offerings, other
acquisitions, and the combination of our buying programs implemented in the December 2006 quarter, which
impacted our VSOE methodology and classification of Licenses revenue and Content, subscriptions, and main-
tenance revenue, as discussed above under “Total Net Revenues.”
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