Symantec 2011 Annual Report Download - page 2

DEAR FELLOW STOCKHOLDERS,
Symantec ended fiscal 2011 on a strong note, as demonstrated by our solid
performance against our key financial metrics. I am proud of our team’s execution
and our accomplishments over the past few quarters. We have a unique and
differentiated portfolio that spans from the endpoint to the data center, supporting
both virtual and physical environments. We work with individual consumers all the
way to the largest organizations in the world. In addition to providing customers
with traditional software solutions, we have expanded our Software-as-a-Service
(“SaaS”) and appliance based offerings, giving customers choice on how our
solutions are delivered and deployed.
Today we are the leader in helping enterprises and consumers secure and manage their information
and identities. IT trends in virtualization, cloud computing, and mobility are changing the way organizations
are doing business. By providing solutions that enable the adoption of these key technology trends, we
will carry that leadership into tomorrow.
Hard work and disciplined planning enabled us to deliver solid results during fiscal year 2011. Our
consumer business grew each quarter driven by our ability to attract and retain more customers through
our online store, the customer appeal of our new services offerings, and the strength of our award
winning products. In our enterprise business, we generated growth across our portfolio driven by demand
for our backup, SaaS, and data loss prevention (“DLP”) products. We have taken great strides in effectively
integrating the VeriSign security business as well as the PGP and GuardianEdge acquisitions into the
Symantec portfolio. Our salesforce and distribution partners are successfully cross-selling these acquired
technologies into our customer installed base.
FINANCIAL RESULTS
During fiscal 2011, GAAP revenue totaled $6.19 billion and grew 4% in constant currency terms from
the previous year. Non-GAAP
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earnings per share were $1.42, down 5% year over year as reported. Excluding
the purchase accounting related deferred revenue write down of $165 million from our acquisitions of
VeriSign’s security business, PGP, and GuardianEdge, non-GAAP earnings per share would have been $0.16
higher, totaling $1.58, up 6% year over year as reported.
As a result of our strong bookings performance during the second half of the year, we closed the year
with a record $3.82 billion in GAAP deferred revenue, up 16% year-over-year in constant currency, and
generated $1.8 billion of cash flow from operations, up 6% year over year as reported.
Furthermore, we continued to demonstrate our commitment to increasing shareholder value by
repurchasing 57 million shares of our stock for $870 million. Our board authorized a new $1 billion share
repurchase program and we exited the first quarter of fiscal 2012 with $679 million remaining in the
program.
SYMANTEC’S VISION AND STRATEGY
We envision a world that is secure and well managed. The future is not about devices or applications;
it is about people and their information. At Symantec, we believe people should work and play freely in a
connected world.
Our strategy is to be the company people choose to secure and manage their information and
identities. Symantec focuses on what matters most — information. We are delivering a differentiated,
customer-centric experience so that people have private, secure, and simple access to information —
anywhere and anytime. We help individuals, small and medium-sized businesses (“SMB”), and global
organizations ensure that their information, technology infrastructures, and related processes are
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Non-GAAP results are reconciled to GAAP on page 5