Symantec 2006 Annual Report Download - page 44

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quarter, we recognize revenue related to these products ratably. As a result, this revenue has been classified as
Content, subscriptions, and maintenance beginning in the December 2005 quarter.
Content, subscriptions, and maintenance revenue also includes professional services revenue, which
consists primarily of the fees we earn related to consulting and educational services. We generally recognize
revenue from our professional services as the services are performed or upon written acceptance from
customers, if applicable, assuming all other conditions for revenue recognition have been met.
Content, subscriptions, and maintenance revenue increased in fiscal 2006 as compared to fiscal 2005 due
primarily to sales of products acquired through the Veritas acquisition, which contributed $534 million of
Content, subscriptions, and maintenance revenue in fiscal 2006. In addition, in fiscal 2006, Content,
subscriptions, and maintenance revenue related to our consumer security products increased $233 million as
compared to fiscal 2005 due primarily to the classification of $160 million of consumer revenue as Content,
subscriptions, and maintenance (rather than Licenses) in fiscal 2006. Revenue related to our enterprise
security products increased $133 million, primarily due to increased awareness of information security threats.
Content, subscriptions, and maintenance revenue increased in fiscal 2005 as compared to fiscal 2004 due
primarily to increases of $494 million and $224 million in revenue from our consumer and enterprise security
products, respectively. The increased sales of these products were due primarily due to increased awareness of
information security threats and continuing growth in demand for our consumer security protection products
and our enterprise virus protection solutions.
Licenses revenue
Year Ended March 31,
2006 2005 2004
($ in thousands)
Licenses revenue ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,270,181 $637,539 $678,872
Percentage of total net revenuesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 31% 25% 36%
Period over period increase (decrease) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 632,642 $(41,333)
99% (6)%
Licenses revenue increased in fiscal 2006 as compared to fiscal 2005 due primarily to sales of products
acquired through the Veritas acquisition, which contributed $835 million of licenses revenue in fiscal 2006.
Our 2006 consumer products that include content updates were released in the December 2005 quarter, and
we recognize revenue related to these products ratably as Content, subscriptions, and maintenance revenues,
which resulted in a decrease in Licenses revenue of $160 million in fiscal 2006. Competitive pressures, a lack
of recent high profile information security threat activity, and to a lesser extent, a decrease in licensing of our
enterprise security products, also partially offset the overall increase in Licenses revenue.
Licenses revenue decreased in fiscal 2005 as compared to fiscal 2004 due primarily to a $51 million
decrease in consumer products revenue. In fiscal 2005, our consumer products had a higher subscription
component than in fiscal 2004, resulting in more revenue being classified as Content, subscriptions, and
maintenance in fiscal 2005.
Net revenues by segment
Consumer Products segment
Year Ended March 31,
2006 2005 2004
($ in thousands)
Consumer products revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,388,632 $1,315,201 $871,980
Percentage of total net revenues ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 34% 51% 47%
Period over period increase ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 73,431 $ 443,221
6% 51%
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