Symantec 2009 Annual Report Download - page 102

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2009 were favorably impacted by the strengthening of the U.S. dollar compared to foreign currencies during fiscal
2008 and by the 2009 restructuring plan. In addition, our ongoing cost and expense discipline positively contributed
to our increased operating margins for the fiscal 2009 periods.
Our operating expenses for fiscal 2008 as compared to fiscal 2007 were adversely impacted by higher
international expenses resulting from the U.S. dollar weakening in comparison to foreign currencies coupled with
additional headcount resulting from acquisitions. These increases were partially offset by our 2008 restructuring
plan initiatives and our ongoing cost and expense discipline.
Sales and marketing expense
Fiscal
2009 $ %
Fiscal
2008 $ %
Fiscal
2007
2009 vs. 2008 2008 vs. 2007
($ in thousands)
Sales and
marketing ....... $2,385,987 $(29,277) (1)% $2,415,264 $407,613 20% $2,007,651
Percentage of total
net revenues ..... 39% 41% 39%
As a percent of net revenues, sales and marketing expenses decreased to 39% for the fiscal 2009 as compared to
41% for the fiscal 2008 as a result of the factors discussed above under “Operating expenses overview.”
Sales and marketing expense as a percentage of total revenues increased to 41% in fiscal 2008 as compared to
39% in fiscal 2007. The percentage increase and increase in absolute dollars in sales and marketing expenses in
fiscal 2008 as compared to fiscal 2007 is primarily due to higher employee compensation expense as a result of the
Altiris and Vontu acquisitions and the OEM placement fees as discussed above under “Financial Results and
Trends.” We negotiated new contract terms with some of our OEM partners in fiscal 2007, for which the expense
commenced being recognized in the fourth quarter of fiscal 2007. In addition, these new contract terms had the
effect of moving our OEM payments from Cost of revenues to Operating expenses.
Research and development expense
Fiscal
2009 $ %
Fiscal
2008 $ %
Fiscal
2007
2009 vs. 2008 2008 vs. 2007
($ in thousands)
Research and development . . $879,702 $(15,540) (2)% $895,242 $28,360 3% $866,882
Percentage of total net
revenues . . ........... 14% 15% 17%
As a percent of net revenues, research and development expense has remained relatively constant in fiscal 2009
and fiscal 2008.
Research and development expense as a percentage of total revenues has remained relatively constant in fiscal
2008 and fiscal 2007. The increase in absolute dollars in fiscal 2008 as compared to fiscal 2007 is attributable to a
higher employee compensation expense primarily related to the Altiris and Vontu acquisitions.
General and administrative expense
Fiscal
2009 $ %
Fiscal
2008 $ %
Fiscal
2007
2009 vs. 2008 2008 vs. 2007
($ in thousands)
General and administrative . . $342,805 $(4,837) (1)% $347,642 $30,859 10% $316,783
Percentage of total net
revenues .............. 6% 6% 6%
General and administrative expense as a percentage of total revenues has remained relatively constant in fiscal
2009, fiscal 2008, and fiscal 2007. The decrease in general and administrative expenses in fiscal 2009 as compared
with the fiscal 2008 is primarily due to items discussed above under “Operating expenses overview.” The increase in
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