Symantec 2003 Annual Report Download - page 24

22 Symantec 2003
CONSUMER PRODUCTS
Our Consumer Products segment focuses on delivering our Internet
security and problem-solving products to individual users, home offices
and small businesses. The segment’s charter is to ensure that our cus-
tomers and their information are secure and protected in a connected
world. Most of the products that we are currently marketing or develop-
ing feature LiveUpdate. This feature enables users to easily download
security updates including virus definitions, firewall rules, URL data-
bases and uninstall scripts. Our consumer products run primarily on
Windows and Macintosh® operating systems. Our Consumer Products
segment represented approximately 41%, 35% and 39% of net rev-
enues during fiscal 2003, 2002 and 2001, respectively.
Norton AntiVirus™ removes viruses automatically, protects both email
and instant messages, and updates itself without interrupting work.
The latest virus definitions are downloaded automatically through
LiveUpdate, when the PC is connected to the Internet.
Norton Internet Security™ is a fully integrated suite that provides pro-
tection from viruses, hackers, and privacy threats. The suite includes
Norton AntiVirus, Norton™ Personal Firewall, Norton™ Parental Control
and Norton™ Spam Alert. Norton Personal Firewall continuously hides
PCs from hackers, blocks online intrusions automatically and safeguards
confidential information. Norton Parental Control shields children from
objectionable Web sites and Norton Spam Alert blocks unwanted email.
Norton SystemWorks™ is a fully integrated suite of problem-solving
utilities that protects PC and Macintosh users from virus threats, opti-
mizes performance, fixes and prevents problems, recovers from system
failures, cleans out Internet clutter and keeps dial-up connections active
when on-line. Included in this suite are the latest complete versions of
our products: Norton AntiVirus, Norton Utilities™ and Norton
CleanSweep™.
SERVICES
Enterprise Security Services provide information security solutions
that incorporate best-of-breed technology, security best practices
and expertise and global resources to help enable e-business success.
Through its comprehensive offerings, Enterprise Security Services
deliver holistic security assessments, planning and implementation,
proactive solutions for security management and response and knowl-
edge transfer to develop internal security skills. Our Services segment
represented approximately 2%, 1% and less than 1% of net revenues
during fiscal 2003, 2002 and 2001, respectively.
Symantec™ Managed Security Services delivers security monitoring,
management, and response to enhance an organization’s information
security posture and help defend against emerging threats. We provide
24x7 real-time services from our global security operations centers
located in Alexandria, Virginia; San Antonio, Texas; Sydney, Australia;
Twyford, United Kingdom; and Berlin, Germany.
In collaboration with our partners, Symantec™ Consulting Services
implements and maintains comprehensive, customized security solu-
tions that enable organizations to establish and maintain a more secure
business environment.
Symantec™ Education Services provides technical product training,
vendor-neutral security education, security certifications and employee
security awareness programs that enable organizations to better protect
vital information.
OTHER
Our Other segment is comprised of sunset products, products nearing
the end of their life cycle, and operations from our Web access manage-
ment product line prior to its disposition in August 2001 and repre-
sented less than 1% of net revenues during each of the fiscal years
2003, 2002 and 2001.
Sales and Marketing
In addition to our direct sales force, we license our enterprise and con-
sumer products through our distributor, corporate reseller, value-added
reseller and system integrator channels.
We sell our consumer products to individuals and small offices/home
offices around the world through a multi-tiered distribution network.
Our products are available to customers through channels that include:
distributors, retailers, direct marketers, Internet-based resellers or
“e-tailers,” original equipment manufacturers, educational institutions
and Internet service providers. We also sell some of our products and
product upgrades through direct mail/email and over the Internet, in
conjunction with channel partners.
We maintain distribution relationships with major independent distribu-
tors. Our indirect sales force works closely with our major distributor
and reseller accounts to manage the flow of orders, inventory levels and
sales to customers. We also work closely with them to execute channel
marketing promotions and other cooperative marketing activities.
Our agreements with distributors are generally nonexclusive and may be
terminated by either party at any time without cause. These distributors
are not within our control and are not obligated to purchase products
from us. They also distribute other vendors’ product lines.
Distributors that accounted for more than 10% of net revenues included
Ingram Micro Inc. (26%, 23% and 26% during fiscal 2003, 2002 and
2001, respectively) and Tech Data Group (15% and 11% during fiscal
2003 and 2002, respectively).