Symantec 2009 Annual Report Download - page 97

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Net revenues and operating income by segment
Consumer segment
Fiscal
2009 $ %
Fiscal
2008 $ %
Fiscal
2007
2009 vs. 2008 2008 vs. 2007
($ in thousands)
Consumer revenues . . . . . . . . . . . . $1,773,207 $27,118 2% $1,746,089 $155,584 10% $1,590,505
Percentage of total net revenues . . . 29% 30% 30%
Consumer operating income . . . . . . $ 948,090 $ 9,463 1% $ 938,627 $ 6,638 1% $ 931,989
Percentage of Consumer revenues. . 53% 54% 59%
Consumer revenues increased for fiscal 2009 as compared to fiscal 2008 primarily due to an increase from our
core consumer security products in our electronic channels, offset by a decrease in our retail channels. Our
electronic channels include sales derived from OEMs, subscriptions, upgrades, online sales, and renewals. In
addition, Consumer revenues increased from the sale of our consumer services and acquired security products.
Consumer revenues increased for fiscal 2008 compared to fiscal 2007 due to an aggregate increase from our
core consumer security products in our electronic channels. The increase was also due to a favorable foreign
currency impact.
Operating income for this segment increased for fiscal 2009 as compared to fiscal 2008, as the increase in
revenue more than offset the increase in expenses. Total expenses for fiscal 2009 increased primarily as a result of
the PC Tools acquisition.
Operating income for this segment increased for fiscal 2008 as compared to fiscal 2007, as the increase in
revenue more than offset the increase in expenses. Total expenses for fiscal 2008 increased primarily as a result of
higher OEM placement fees.
Security and Compliance Segment
Fiscal
2009 $ %
Fiscal
2008 $ %
Fiscal
2007
2009 vs. 2008 2008 vs. 2007
($ in thousands)
Security and Compliance
revenues . . . . . . . . . . . . . . . . . . $1,610,835 $ 1,367 0% $1,609,468 $200,562 14% $1,408,906
Percentage of total net revenues. . . 26% 27% 27%
Security and Compliance operating
income . . . . . . . . . . . . . . . . . . . $ 520,837 $53,988 12% $ 466,849 $ 97,895 27% $ 368,954
Percentage of Security and
Compliance revenues . . . . . . . . . 32% 29% 26%
Security and Compliance revenues were flat for fiscal 2009 as compared to fiscal 2008.
Security and Compliance revenues increased for fiscal 2008 as compared to fiscal 2007 primarily due to sales
of new products from our Altiris acquisition for which there is no comparable revenue in the prior period. Included
in the total Security and Compliance segment revenue increase for fiscal 2008 is a favorable foreign currencies
impact.
Operating income for the Security and Compliance segment increased for fiscal 2009 as compared to fiscal
2008, as expenses decreased while revenue growth remained relatively flat. Total expenses for fiscal 2009 benefited
from continued cost containment measures.
Operating income for this segment increased for fiscal 2008 as compared to fiscal 2007, as the increase in
revenues more than offset the increase in expenses. Total expenses increased primarily as a result of higher salary
and commissions which includes the impact of the fiscal 2008 Altiris and Vontu acquisitions.
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