Symantec 1997 Annual Report Download - page 47

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SYMANTEC CORPORATION
Note 1. Balance Sheet Information
March 31,
(In thousands) 1997 1996
Cash, cash equivalents and short-term
investments:
Cash $33,755 $ 20,176
Cash equivalents 62,003 21,601
Short-term investments 64,324 87,422
$ 160,082 $ 129,199
Trade accounts receivable:
Receivables $51,950 $ 64,356
Less: allowance for doubtful accounts (4,300) (5,016)
$ 47,650 $ 59,340
Inventories:
Raw materials $1,736 $ 1,969
Finished goods 2,740 5,924
$ 4,476 $ 7,893
Equipment and leasehold improvements:
Computer equipment $91,533 $ 79,153
Office furniture and equipment 27,706 25,753
Leasehold improvements 17,697 12,603
136,936 117,509
Less: accumulated depreciation
and amortization (85,326) (65,811)
$ 51,610 $ 51,698
Capitalized software:
Purchased product rights $591 $ 8,680
Capitalized software costs 2,465 5,623
Less: accumulated amortization of
purchased product rights (55) (8,162)
Less: accumulated amortization of
capitalized software costs (964) (1,958)
$ 2,037 $ 4,183
Other accrued expenses:
Acquisition and restructuring expenses $3,833 $ 7,833
Deferred revenue 13,825 13,350
Marketing development funds 12,529 11,412
Other 23,555 15,069
$ 53,742 $ 47,664
Note 2. Business Combinations and
Purchased Product Rights
During the three fiscal years ended March 31, 1997, Symantec
completed acquisitions of the following companies:
Shares of Acquired
Symantec Company
Common Stock
Stock Options
Companies Acquired Date Acquired Issued Assumed
Fast Track, Inc.
(“Fast Track”) May 28, 1996 600,000 —
Delrina Corporation
(“Delrina”) November 22, 1995 13,684,174*1,271,677
Intec Systems Corporation
(“Intec”) August 31, 1994 133,332 —
Central Point Software, Inc.
(“Central Point”) June 1, 1994 4,029,429 707,452
SLR Systems, Inc. (“SLR”) May 31, 1994 170,093 —
* Includes Delrina exchangeable stock that is traded on the Toronto Stock Exchange. Delrina
stockholders received Delrina exchangeable stock in exchange for Delrina common shares at a
rate of 0.61 per share. Delrina exchangeable stock may be converted at any time into
Symantec common stock on a one-for-one basis at each stockholder’s option.
All of these acquisitions were accounted for as poolings
of interest. In connection with the acquisitions of the com-
panies listed above, Symantec incurred significant acquisition
expenses (See Note 10). Due to differing year ends of
Symantec and Delrina, financial information for dissimilar
fiscal year ends was combined. Delrina’s fiscal year ended
June 30, 1995 was combined with Symantec’s fiscal year
ended March 31, 1995. Accordingly, Delrina’s results of oper-
ations for the quarter ended June 30, 1995 were duplicated in
the combined statements of operations for fiscal 1996 and
1995 and Delrina’s net loss for the quarter ended June 30,
1995 was credited to stockholder’s equity. Delrina reported
net revenues of $19.8 million and net loss of $4.8 million in
the quarter ended June 30, 1995. The results of operations of
Fast Track were not material to Symantec’s consolidated
financial statements, and therefore, amounts prior to the
date of acquisition were not restated to reflect the combined
operations of the companies.
Note 3. Cash Equivalents, Short-Term
Investments and Fair Value of Financial
Instruments
All cash equivalents, short-term investments and restricted
investments have been classified as available-for-sale securities.
As of March 31, 1997 and 1996, the estimated fair value of the
cash equivalents and short-term investments consisted of
the following:
Notes to
Consolidated Financial Statements