Symantec 2008 Annual Report Download - page 121

grew by $174 million in fiscal 2008 as compared to fiscal 2007. Included in the total Consumer Products segment
revenue increase is a favorable foreign currencies impact.
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’ 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.
Total expenses from our Consumer segment increased $183 million in fiscal 2008 as compared to fiscal 2007.
The increase is primarily a result of higher OEM placement fees, which is primarily a result of placement fees being
recognized as operating expense as discussed in “Cost of Revenues” below.
Total expenses increased $160 million in fiscal 2007 as compared to fiscal 2006. The increase is driven by
higher OEM placement fees. The balance of the increase is primarily a result of higher salary and related expenses.
Security and Compliance Segment
2008 2007 2006
Fiscal
($ in thousands)
Security and Compliance revenues .................. $1,630,133 $1,408,906 $1,303,476
Percentage of total net revenues .................... 28% 27% 31%
Period over period change ........................ $ 221,227 $ 105,430
16% 8%
Security and Compliance operating income ............ $ 256,207 $ 223,374 $ 225,876
Percentage of Security and Compliance revenues ....... 16% 16% 17%
Period over period change ........................ $ 32,833 $ (2,502)
15% (1)%
Security and Compliance revenues increased in fiscal 2008 compared to fiscal 2007 primarily due to
$194 million of new sales of products from our acquisition of Altiris for which there is no comparable revenue
in the same prior year period. Included in the total Security and Compliance segment revenue increase is a favorable
foreign currencies impact.
Security and Compliance revenues increased in fiscal 2007 as compared to fiscal 2006 primarily due to new
sales of our Enterprise Vault product, which was acquired with Veritas, for the full twelve months in the 2007 period
compared to nine months in the 2006 period. This product contributed $38 million of 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 $20 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 $34 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.
Total expenses from our Security and Compliance segment increased $169 million in fiscal 2008 as compared
to fiscal 2007. The increase is primarily a result of higher salary and commissions which includes the impact of the
fiscal 2008 Altiris and Vontu acquisitions.
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