Symantec 2010 Annual Report Download - page 96

License. Some of these licenses contain requirements that we make available source code for modifications or
derivative works we create based upon the open source software, and that we license such modifications or
derivative works under the terms of a particular open source license or other license granting third parties certain
rights of further use. By the terms of certain open source licenses, we could be required to release the source code of
our proprietary software if we combine our proprietary software with open source software in a certain manner. In
addition to risks related to license requirements, usage of open source software can lead to greater risks than use of
third party commercial software, as open source licensors generally do not provide warranties or controls on origin
of the software. We have established processes to help alleviate these risks, including a review process for screening
requests from our development organizations for the use of open source, but we cannot be sure that all open source is
submitted for approval prior to use in our products. In addition, many of the risks associated with usage of open
source cannot be eliminated, and could, if not properly addressed, negatively affect our business.
Our software products and website may be subject to intentional disruption that could adversely impact
our reputation and future sales.
Although we believe we have sufficient controls in place to prevent intentional disruptions, we expect to be an
ongoing target of attacks specifically designed to impede the performance of our products and harm our reputation
as a company. Similarly, experienced computer programmers may attempt to penetrate our network security or the
security of our website and misappropriate proprietary information and/or cause interruptions of our services.
Because the techniques used by such computer programmers to access or sabotage networks change frequently and
may not be recognized until launched against a target, we may be unable to anticipate these techniques. The theft
and/or unauthorized use or publication of our trade secrets and other confidential business information as a result of
such an event could adversely affect our competitive position, reputation, brand and future sales of our products, and
our customers may assert claims against us related to resulting losses of confidential or proprietary information. Our
business could be subject to significant disruption, and we could suffer monetary and other losses and reputational
harm, in the event of such incidents and claims.
Increased customer demands on our technical support services may adversely affect our relationships with
our customers and our financial results.
We offer technical support services with many of our products. We may be unable to respond quickly enough to
accommodate short-term increases in customer demand for support services. We also may be unable to modify the
format of our support services to compete with changes in support services provided by competitors or successfully
integrate support for our customers. Further customer demand for these services, without corresponding revenues,
could increase costs and adversely affect our operating results.
We have outsourced a substantial portion of our worldwide consumer support functions to third party service
providers. If these companies experience financial difficulties, do not maintain sufficiently skilled workers and
resources to satisfy our contracts, or otherwise fail to perform at a sufficient level under these contracts, the level of
support services to our customers may be significantly disrupted, which could materially harm our relationships
with these customers.
Accounting charges may cause fluctuations in our quarterly financial results.
Our financial results have been in the past, and may continue to be in the future, materially affected by non-
cash and other accounting charges, including:
• Amortization of intangible assets, including acquired product rights
• Impairment of goodwill
• Stock-based compensation expense
• Restructuring charges
• Impairment of long-lived assets
• Loss on sale of a business and similar write-downs of assets held for sale
20