Symantec 2002 Annual Report Download - page 3

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1SYMANTEC ANNUAL REPORT 2002LETTER TO SHAREHOLDERS
Despite a challenging economic environment, fiscal 2002 was a year of remarkable
accomplishments for our worldwide team. During one of the most destructive malicious
code environments in the history of the security industry, a growing number of cus-
tomers worldwide turned to Symantec as their trusted partner. Our performance far
outpaced the technology sector and many of our competitors, allowing us to provide
our customers with a whole new level of security when they need it most.
Together, our broad portfolio of award-winning security and administration tech-
nologies and our diverse base of enterprise customers and individual consumers are
at the heart of our ability to deliver consistent, predictable results. We expect these
combined strengths to be an important factor in our continued success, even during
these uncertain times.
fiscal year 2002 review As we celebrate our twentieth year of operation, Symantec
surpassed the $1 billion revenue mark and achieved record pro forma results.
Revenues grew 13% to $1.071 billion, with almost half of those sales coming from
outside the U.S. Net income, excluding acquisition-related amortization and one-
time charges, grew 9% to $200.7 million and earnings per diluted share grew 11%
to $1.30. Deferred revenue grew 81% to $331 million and cash flow from operations
generated $511 million. Going forward, our financial strength gives us the opportunity
to drive our own destiny.
The enterprise security segment of our business grew 29%, shifting the mix of
revenues by five points and accounting for 42% of total sales—well in line with
expectations. We integrated our award-winning LiveUpdate™technology into all of
our high-end security solutions. This makes Symantec the only provider to deliver
security updates directly to the desktop, gateway or server through a common, easy-
to-use method. We also integrated our antivirus and content filtering technologies to
enhance gateway and mail server protection with Symantec™Web Security, which
plugs the holes on a company’s network perimeter to block blended threats such as
the Nimda worm.
We expanded our firewall appliance offering with a new appliance series aimed at
small businesses; Symantec™Firewall/VPN received PC Magazine’s Editor’s Choice
award. And, we delivered Symantec™Gateway Security, the first-of-its-kind, fully inte-
grated security appliance that provides a simple solution to combat complex threats at
the gateway. This advance in security integrates firewall, VPN, virus protection, content
filtering and intrusion detection capabilities, demonstrating the value of our AXENT
Technologies acquisition.
Dear shareholders