Symantec 2008 Annual Report Download - page 122

Storage and Server Management Segment
2008 2007 2006
Fiscal
($ in thousands)
Storage and Server Management revenues............. $2,136,307 $1,906,607 $1,229,091
Percentage of total net revenues .................... 36% 37% 30%
Period over period change ........................ $ 229,700 $ 677,516
12% 55%
Storage and Server Management operating income ...... $ 884,619 $ 779,573 $ 410,840
Percentage of Storage and Server Management revenues . . 41% 41% 33%
Period over period change ........................ $ 105,046 $ 368,733
13% 90%
Storage and Server Management revenues increased in fiscal 2008 compared to fiscal 2007 primarily due to an
aggregate increase in revenue from our Backup Exec, Storage Foundation, and Net Backup products of $203 mil-
lion, driven by increased demand for products related to the standardization and simplification of data center
infrastructure and higher amortization of deferred revenue, as a result of the higher amount of deferred revenue at
the beginning of fiscal 2008 than at the beginning of fiscal 2007, for the reasons discussed above in “Total Net
Revenues.” Included in the total Storage and Server Management segment revenue increase is a favorable foreign
currencies impact.
Storage and Server Management revenues increased in fiscal 2007 compared to fiscal 2006 primarily due to
new sales of storage and availability products from our acquisition of Veritas for the full twelve month period
compared to nine months in the fiscal 2006 period. These products contributed $452 million of revenue in the June
2006 quarter for which there was no comparable revenue in the June 2005 quarter. The effect of the purchase
accounting adjustment discussed under “Total Net Revenues” above also contributed $220 million to the increase in
revenue in fiscal 2007. Excluding the effects of the aforementioned items, revenue in fiscal 2007 as compared to
fiscal 2006 was relatively flat due to the combination of the buying programs for all of our enterprise offerings in the
December 2006 quarter. This combination resulted in lower recognized revenue and increased deferred revenue as
discussed under “Total Net Revenues” above.
Total expenses from our Storage and Server Management segment increased $130 million in fiscal 2008 as
compared to fiscal 2007. The increase is primarily a result of the impairment of intangible assets related to the APM
business of $95 million. Additionally, increases in Sales expenses drove costs higher for the Storage and Server
Management group.
Services Segment
2008 2007 2006
Fiscal
($ in thousands)
Services revenues ................................. $359,955 $293,226 $201,217
Percentage of total net revenues ...................... 6% 6% 5%
Period over period change........................... $ 66,729 $ 92,009
23% 46%
Services operating loss ............................. $(26,511) $ (43,606) $ (20,450)
Percentage of Services revenues ...................... (7)% (15)% (10)%
Period over period change........................... $ 17,095 $ (23,156)
(39)% 113%
Services revenues increased in fiscal 2008 compared to fiscal 2007 primarily due to an increase in consulting
services of $48 million as a result of increased demand for a more comprehensive solution by purchasing our service
offerings in conjunction with the purchase of our products and the increased desire for customers to augment the
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