Symantec 2006 Annual Report Download - page 4

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FINANCIAL ACHIEVEMENT
We achieved record fi nancial results in fi scal
2006
, albeit, slightly below our initial expecta-
tions. Our non-
GAAP
revenue
grew
8
% to
$ 5.0
billion, while non-
GAAP
earnings per share
¹
grew
16 %
to
$ 1.00
. Our non-
GAAP
deferred revenue
¹
grew
18 %
to over
$ 2.2
billion. In
addition, we generated
$ 1.6
billion in pro forma combined cash fl ow from operating activities ².
We ended the year with
$ 2.9
billion in cash, cash equivalents and short-term investments.
The board and I believe that repurchasing stock is an excellent way to enhance shareholder
value, and during fi scal
2006
we invested approximately
$ 3.6
billion buying back nearly
175 million shares of our common stock. In January the board authorized an additional
$ 1
billion of stock repurchases. And, in June the board authorized another
$ 1.5
billion.
INNOVATION: DRIVING GROWTH
Symantec has always grown by combining strategic acquisitions with strong internal
technology and product development. In fi scal
2006
we executed on this strategy again and
completed six acquisitions in addition to completing our merger with Veritas. And our
R&D
teams generated more than
100
new products and services across all of our categories,
while our consumer products group shipped nearly
23
million boxes around the world.
To ensure that we continue to offer industry-leading products and services, we intend to
invest approximately
15
percent of annual gross revenue into
R&D
— protecting our custom-
ers from tomorrow’s challenges and enabling them to take advantage of tomorrow’s
opportunities. In addition, as we have for the past several years, we will look to augment
our
R&D
efforts by acquiring leading technologies in adjacent markets.
ESTABLISHING AND LEVERAGING A STRONG MARKET POSITION
Enterprises need to keep their infrastructure up and running
24
×
7
×
365
. They need to
enable access to information anytime, anywhere. That means that critical business systems
must be up and running all the time. It starts with the basics of protection. Sustaining
the continuous availability of information, systems, and applications requires businesses
to protect their entire data center infrastructure — from client to storage to servers.
Symantec pioneered the idea of protection. We are the leader in creating and deploying
new data security and availability technologies. Currently, we have numerous development
projects underway that we believe will extend that leadership position, particularly in
the enterprise market.
As we pursue these projects, we will focus on the critical areas of message management,
IT
policy compliance, and endpoint compliance. Messaging systems, such as email, are
fundamental to business operations, and managing the messaging environment requires
real-time protection at all layers of the infrastructure. We are also introducing innova-
tive solutions to help our customers in the areas of
IT
policy compliance and endpoint
compliance — areas that we believe will be important business drivers as organizations
increasingly recognize the need to demonstrate compliance with internal policies and
external regulations.
2
1 Non-GAAP results are
reconciled to GAAP results
on the inside front cover.
2 Pro forma combined
cash fl ow from operating
activities includes
Symantec’s fi scal 2006
cash fl ow from oper-
ations of $ 1.5 billion and
Veritas’ June quarter
2005 cash fl ow from
operations of $ 106 million.