Symantec 2008 Annual Report Download - page 120

Licenses revenue
2008 2007 2006
Fiscal
($ in thousands)
Licenses revenues .............................. $1,312,853 $1,281,794 $1,270,181
Percentage of total net revenues .................... 22% 25% 31%
Period over period change ........................ $ 31,059 $ 11,613
2% 1%
Licenses revenue increased in fiscal 2008 as compared to fiscal 2007 primarily due to an increase of
$112 million from new sales of products from our acquisition of Altiris for which there is no comparable revenue in
the prior period and a favorable foreign currency impact. This increase is offset by a decrease in license revenues
from the Security and Compliance and Storage and Server Management segments of $68 million (excluding
acquired Altiris products, which mitigated the decline in license revenues from those products), as a result of
increased flexibility in contract terms and the combination of our buying programs in the December 2006 quarter,
causing a larger portion of revenue associated with contracts to be classified as Content, subscriptions, and
maintenance revenue instead of Licenses revenue during the first half of fiscal 2008.
Licenses revenue 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 $268 million of Licenses revenues
in the June 2006 quarter for which there was no comparable revenue in the June 2006 quarter. Excluding this June
2006 contribution, License revenues were down in both Security and Data Management and Data Center
Management segments as a result of the increased flexibility in contract terms and the combination of our buying
programs implemented in the December 2006 quarter, both of which caused a larger portion of contracts to be
classified as Content, subscriptions, and maintenance, which is subject to deferral, instead of Licenses revenue,
which is generally recognized immediately, as discussed above in “Total Net Revenues.”
Net revenues and operating income by segment
Consumer Products segment
2008 2007 2006
Fiscal
($ in thousands)
Consumer Products revenues ...................... $1,746,089 $1,590,505 $1,409,580
Percentage of total net revenues .................... 30% 30% 34%
Period over period change ........................ $ 155,584 $ 180,925
10% 13%
Consumer Products operating income . . .............. $ 938,627 $ 931,989 $ 950,508
Percentage of Consumer Products revenues ............ 54% 59% 67%
Period over period change ........................ $ 6,638 $ (18,519)
1% (2)%
Consumer Products revenues increased in fiscal 2008 compared to fiscal 2007 due to an aggregate increase of
$286 million in revenue from our Norton Internet Security and Norton 360 products. These increases are due to the
increase in demand for these products during both fiscal 2007 and fiscal 2008, as the revenue from our consumer
products is generally recognized ratably over the 12 months after the product is sold. These increases are partially
offset by aggregate decreases of $129 million in revenue from our Norton AntiVirus and Norton System Works
products. This decrease results from our customers’ continued migration to our Norton Internet Security product
and our new Norton 360 product, which offer broader protection and backup features to address the rapidly
changing threat environment. Our electronic orders include sales derived from OEMs, subscriptions, upgrades,
online sales, and renewals. Revenue from electronic orders (which includes sales of the aforementioned products)
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