Symantec 2002 Annual Report Download - page 33

The demand for some of our products, including those currently under development, may decrease if,
among other reasons:
‚ Microsoft includes additional product features in future releases of Windows;
‚ hardware vendors, including Cisco, incorporate additional server-based network management and
security tools into network operating systems; or
‚ competitors license certain of their products to Microsoft or original equipment manufacturers for
inclusion in their operating systems or products.
In addition, we compete with other computer software companies for access to retail distribution
channels and for the attention of customers at the retail level and in corporate accounts. We also compete with
other software companies to acquire products or companies and to publish software developed by third parties.
Many of our existing and potential competitors may have greater Ñnancial, marketing or technological
resources than we do. We believe that competition in the industry will continue to intensify as other major
software companies expand their product lines into additional product categories.
Manufacturing
Our product development groups produce a set of master CD-ROMs or diskettes and documentation for
each product that are then duplicated or replicated and packaged into products by our logistics organization.
Purchasing of all raw materials is done by Symantec personnel in our Cupertino, California and Dublin,
Ireland facilities for products manufactured in those countries. All of our domestic manufacturing and order
fulÑllment is performed by an outside contractor under the supervision of our domestic logistics organization.
These manufacturing steps that are subcontracted to outside organizations include the replication of CD-
ROMs, printing of documentation materials and retail boxes, and assembly of the Ñnal packages. For most
products distributed outside of North and South America, our Dublin, Ireland manufacturing facility performs
diskette duplication, assembly of the Ñnal packages, and order fulÑllment. Our Dublin, Ireland manufacturing
facility also subcontracts to outside organizations for the replication of CD-ROMs and printing of documenta-
tion materials and retail boxes.
Intellectual Property
We regard our software as proprietary. We attempt to protect our software technology by relying on a
combination of copyright, patent, trade secret and trademark laws, restrictions on disclosure and other
methods. Litigation may be necessary to enforce our intellectual property rights, to protect trade secrets or
trademarks or to determine the validity and scope of the proprietary rights of others. Furthermore, other
parties have asserted and may, in the future, assert infringement claims against us. For further discussion on
our current litigation, see Note 16 of Notes to Consolidated Financial Statements of this Form 10-K. These
claims and any litigation may result in invalidation of our proprietary rights. Litigation, even if not meritorious,
could result in substantial costs and diversion of resources and management attention.
Employees
As of March 31, 2002, we employed approximately 3,900 people worldwide, including approximately
2,100 in sales, marketing and related staÅ activities, 890 in product development, 150 in consulting services,
and 760 in management, manufacturing, administration and Ñnance. In connection with the relocation of our
Leiden, Netherlands operations to Dublin, Ireland in early Ñscal year 2003, a group of employees in the
Leiden facility have joined a union to negotiate the proposed terms of the transfer of operations to our Dublin
facility, focusing primarily on severance beneÑts for employees that do not relocate to Dublin. Except for these
employees in our Leiden facility, no other employees are represented by a labor union. We believe that
relations with our employees are good.
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