Symantec 2003 Annual Report Download - page 32

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30 Symantec 2003
Period-to-Period Percentage
Increase (Decrease)
2003 2002
Year Ended March 31, Compared Compared
2003 2002 2001 to 2002 to 2001
Net revenues 100% 100% 100% 31% 26%
Cost of revenues 18 18 16 28 48
Gross margin 82 82 84 32 21
Operating expenses:
Research and development 14 15 15 20 29
Sales and marketing 38 40 40 23 25
General and administrative 555 3522
Amortization of goodwill –19 8 (100) 176
Amortization of other intangibles from acquisitions ––– **
Acquired in-process research and development ––3 *(100)
Restructuring, site closures and other 12– (46) 458
Litigation judgment ––– **
Total operating expenses 58 81 71 (6) 42
Operating income 24 113 4,147 (93)
Interest income 334 19(5)
Interest expense (1) (1) – 131 *
Income, net of expense, from sale of technologies and product lines –12 (56) (24)
Other expense, net ––(3) – *
Income before income taxes 26 416 699 (68)
Provision for income taxes 879 56(4)
Net income (loss) 18% (3)% 7% 983 (144)
* Percentage change is not meaningful.
RECENT EVENTS
During the September 2002 quarter, we acquired the following four
privately held companies for approximately $375.2 million in cash:
•Riptech, Inc., a provider of scalable, real-time managed security
services that protect clients through advanced outsourced security
monitoring and professional services.
•Recourse Technologies, Inc., a provider of security threat manage-
ment solutions that detect, analyze and respond to both known and
novel threats, including intrusions, internal attacks and denial of
service attacks.
•SecurityFocus Inc., a provider of enterprise security threat manage-
ment systems, providing global early warning of cyber attacks, cus-
tomized and comprehensive threat alerts, and countermeasures to
prevent attacks before they occur.
•Mountain Wave, Inc., a provider of automated attack sensing and
warning software and services for real-time enterprise security
operations management.
As a result of these acquisitions, we recorded, as adjusted for revised
estimates related to certain liabilities, approximately $4.7 million for
acquired in-process research and development, $40.5 million for devel-
oped technology and acquired product rights, $307.5 million for good-
will, $4.3 million for other intangibles, $19.3 million for net deferred tax
assets and $7.6 million for tangible assets, net of liabilities.
Results of Operations
The following table sets forth each item from our consolidated state-
ments of operations as a percentage of net revenues and the percent-
age change in the total amount of each item for the periods indicated.