Symantec 2008 Annual Report Download - page 124

(1)
Americas includes net revenues from the United States of $2.8 billion, Canada of $171 million, and Latin
America of $110 million during fiscal 2008.
(2)
Americas includes net revenues from the United States of $2.6 billion, Canada of $176 million, and Latin
America of $104 million during fiscal 2007.
(3)
Americas includes net revenues from the United States of $2.0 billion, Canada of $140 million, and Latin
America of $72 million during fiscal 2006.
International revenues increased in fiscal 2008 as compared to fiscal 2007 primarily due to increased revenues
related to our Storage and Server Management and Security and Compliance products of $272 million, as a result of
increased demand for products related to the standardization and simplification of data center infrastructure and
higher amortization of deferred revenue for the reasons described above. These products contributed $179 million
in increased revenues in the Americas in fiscal 2008 as compared to fiscal 2007. Sales of new products from our
acquisition of Altiris increased revenues in the international regions and the Americas by $72 million and
$122 million, respectively, for which there is no comparable revenue in the prior period. Growth in revenues
in international regions and the Americas from sales of products of our Consumer Products of $96 million and
$60 million, respectively, was driven by prior period demand for Norton Internet Security products. Foreign
currencies had a favorable impact on net revenues in fiscal 2008 compared to fiscal 2007.
International revenues increased in fiscal 2007 as compared to fiscal 2006 primarily due to new sales of 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 $232 million of international
revenues in the June 2006 quarter for which there was no comparable revenue in the June 2005 quarter. In the
Americas, these products contributed $286 million in the June 2006 quarter for which there was no comparable
revenue in the June 2005 quarter. In addition, a portion of the revenue increase in fiscal 2007 is 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. The purchase accounting adjustment increased fiscal
2007 revenues by $188 million in the Americas and $83 million in the international regions compared to fiscal 2006.
Growth in our Consumer Products segment, driven by Norton Internet Security, resulted in a $129 million increase
in the international regions and a $52 million increase in the Americas in fiscal 2007 revenues versus fiscal 2006.
Both domestic and international revenue from enterprise offerings were negatively impacted primarily due to the
increased flexibility in our contract terms and the combination of our buying programs. These changes resulted in a
larger portion of contracts being subject to deferral and a correspondingly lower amount of revenue recognized in
the current period, as discussed in “Total Net Revenues” above. Foreign currencies had a favorable impact on net
revenues in fiscal 2007 compared to fiscal 2006.
We are unable to predict the extent to which revenues in future periods will be impacted by changes in foreign
currency exchange rates. If international sales become a greater portion of our total sales in the future, changes in
foreign currency exchange rates may have a potentially greater impact on our revenues and operating results.
Cost of Revenues
2008 2007 2006
Fiscal
($ in thousands)
Cost of revenues ................................. $1,220,330 $1,215,826 $981,869
Gross margin ................................... 79% 77% 76%
Period over period change .......................... $ 4,504 $ 233,957
0% 24%
Cost of revenues consists primarily of amortization of acquired product rights, fee-based technical support
costs, costs of billable services, payments to OEMs under revenue-sharing arrangements, manufacturing and direct
material costs, and royalties paid to third parties under technology licensing agreements.
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