Symantec 2009 Annual Report Download - page 98

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Storage and Server Management Segment
Fiscal
2009 $ %
Fiscal
2008 $ %
Fiscal
2007
2009 vs. 2008 2008 vs. 2007
($ in thousands)
Storage and Server Management
revenues . . . . . . . . . . . . . . . . . $2,294,929 $158,622 7% $2,136,307 $229,700 12% $1,906,607
Percentage of total net revenues . . 37% 37% 37%
Storage and Server Management
operating income . . . . . . . . . . . $1,024,393 $340,826 50% $ 683,567 $ 49,574 8% $ 633,993
Percentage of Storage and Server
Management revenues . . . . . . . 45% 32% 33%
Storage and Server Management revenues increased for fiscal 2009 as compared to fiscal 2008 primarily due
to increased sales of products related to storage management, data protection, disaster recovery and products
supporting high availability. The demand for these products is driven by the increase in the proliferation of
structured and unstructured data as well as the increasing demand for optimization of storage systems.
Storage and Server Management revenues increased for fiscal 2008 as compared to fiscal 2007 primarily due
to increased demand for products related to the standardization and simplification of data center infrastructure and
higher amortization of deferred revenue, for the reasons discussed above in “Total Net Revenues.” Included in the
total Storage and Server Management segment revenue increase for fiscal 2008 is a favorable foreign currencies
impact.
Operating income for the Storage and Server Management segment increased for the fiscal 2009 as compared
to the fiscal 2008, as revenue growth was coupled with a decrease in expenses. Total expenses for the fiscal 2009
decreased partly as a result of the fiscal 2008 divestiture of the APM business.
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 from our Storage and Server Management
segment increased primarily as 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
Fiscal
2009 $ %
Fiscal
2008 $ %
Fiscal
2007
2009 vs. 2008 2008 vs. 2007
($ in thousands)
Services revenues . . . . . . . . . . . . . . . . . . $469,495 $88,875 23% $380,620 $87,394 30% $293,226
Percentage of total net revenues. . . . . . . . 8% 6% 6%
Services operating loss . . . . . . . . . . . . . . $ (442) $35,659 99% $ (36,101) $ 7,505 17% $ (43,606)
Percentage of Services revenues. . . . . . . . 0% (9)% (15)%
Services revenues increased for fiscal 2009 as compared to fiscal 2008 primarily due to an increase in SaaS
revenues as a result of our November 14, 2008 acquisition of MessageLabs. The remaining increase in revenues was
in our consulting services and Business Critical Services, as a result of increased demand for more comprehensive
software implementation assistance and increased demand for our Business Critical Services. Customers are
increasingly purchasing our service offerings in conjunction with the purchase of our products and augmenting the
capabilities of their own IT staff with our onsite consultants.
Services revenues increased for fiscal 2008 compared to fiscal 2007 primarily due to an increase in consulting
services 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 capabilities of
their own IT staff with our onsite consultants. Services revenues increased as a result of sales of new services from
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