2005 Annual Report
SYMANTEC 2005 ANNUAL REPORT BE FEARLESS LEAD THREE YEAR SUMMARY Fiscal Year Ended (in millions, except per share amounts) 2005 2004 2003 Reconciliation of Non-GAAP to GAAP Results*: Revenues $ 2,583 $ 1,870 $ 1,407 Non-GAAP Gross Margin $ 2,180 $ 1,584 $ 1,186 Cost of revenues: amortization of acquired product rights $ (49) $ (41) $ (29) GAAP Gross Margin $ 2,131 $ 1,543 $ 1,157 Non-GAAP Operating Expenses $ 1,292 $ 1,007 $ 796 Amortization of other intangibles from acquisitions $ 5 $ 3 $ 3 Amortization of deferred stock-based compensation $ 5 – – Acquired in-process research and development $ 3 $ 4 $ 5 Restructuring $ 3 $ 1 $ 11 Patent settlement – $ 14 – Integration costs $ 3 – – GAAP Operating Expenses $ 1,311 $ 1,029 $ 815 Non-GAAP Net Income $ 634 $ 411 $ 280 Cost of revenues $ (49) $ (41) $ (29) Operating expenses $ (20) $ (21) $ (19) Income tax benefit $ 25 $ 22 $ 16 Tax charge on cash repatriation $ (54) – – GAAP Net Income $ 536 $ 371 $ 248 GAAP Net Income per Share – Diluted $ 0.74 $ 0.54 $ 0.38 Non-GAAP Net Income per Share – Diluted $ 0.87 $ 0.59 $ 0.43 Other Information: Cash Flow from Operating Activities $ 1,207 $ 903 $ 599 Total Assets $ 5,614 $ 4,456 $ 3,266 Stockholders’ Equity $ 3,705 $ 2,426 $ 1,764 Total Employees 6,395 5,300 4,344 *In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Symantec reports non-GAAP financial results. Non-GAAP net income per share exclude amortization of acquisition-related intangibles, amortization of deferred stock-based compensation, in-process research and development, and certain other identified charges, such as restructuring, patent settlement, and integration planning expenses associated with the VERITAS merger, as well as the tax ef- fect of these items, and the one-time tax effect associated with the company’s cash repatriation under the American Jobs Creation Act.
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