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STC/Annual Cvr/FA ™ Corporate Profile Symantec Corporation helps make users productive and keep their computers safe and reliable, anywhere and anytime. As the world leader in utility software for business and personal computing, Symantec is acclaimed for both its customer satisfaction and product brand recognition. The Company offers a broad range of solutions focused on addressing customer needs in three main areas: the Norton product line of anti-virus and PC- assistance products; products that cater to remote user productivity; and the Visual Café product lines in Internet development tools. Founded in 1982, Symantec Corporation employs more than 2,300 people worldwide, ™ with headquarters in Cupertino, California. The stock is traded on NASDAQ under the symbol SYMC. Information on the Company and its products can be obtained by calling (800) 441-7234 toll free or (541) 334-6054, or accessed on the World Wide Web at www.symantec.com. The following letter and report contain forward-looking statements that are subject to significant risks and uncertainties. Several important factors could cause actual results to differ materially from historical results and percentages and results anticipated by the forward-looking statements contained in this report. Readers should pay particular attention to the risk factors described in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Readers should carefully review the risk factors described in the other documents the Company files from time to time with the Securities and Exchange Commission, including the Annual Report on Form 10-K as filed by Symantec Corporation June 5, 1998. © 1998 Symantec Corporation. All rights reserved. Printed in the U.S.A. 7/98 35353 09-71-00293 Financial Highlights Corporate Directory NET INCOME* Symantec and its shareholders experienced a strong Board of Directors Corporate Officers Corporate Headquarters Rest of World fiscal 1998 with successful financial performance and achievements. We have built Mar. 31, 1998 $ 24,138 Tania Amochaev and Key Employees Symantec Corporation 13% shareholder value by implementing a long-time vision, bringing solutions to customers North America Chairman of the Executive Committee, Gordon E. Eubanks, Jr. 10201 Torre Avenue Dec. 31, 1997 $ 21,836 QRS Corporation President & Chief Executive Officer Cupertino, California 95014-2132 that meet their needs and executing our business strategy well. Europe, RESS (408) 253-9600 P Sep. 30, 1997 $ 20,580 Middle East Charles M. Boesenberg and Africa 22% Howard A. Bain, III President & CEO, Magellan Corporation Vice President, Worldwide Operations Transfer Agent 65% Jun. 30, 1997 $ 18,535 & Chief Financial Officer Walter W. Bregman Bank of Boston ATERMARK W Chairman & Co-Chief Executive Officer, P.O. Box 644 $ 8,269 Christopher Calisi Mar. 31, 1997 Boston, Massachusetts 02102 S&B Enterprises Vice President, Remote Productivity Solutions Business Unit Dec. 31, 1996 $ 13,852 Carl D. Carman Investor Relations NET INCOME PER SHARE – DILUTED Printing: Chairman, Symantec Corporation Thomas Darnall A copy of the Company’s Form 10-K General Partner, Hill, Carman Ventures (in thousands) Vice President, Corporate Services for the fiscal year ended April 3, 1998 REVENUE BY REGION Mar. 31, 1998 $ 0.40 AM as filed with the Securities and * Quarterly operating results for the period ended March 31, 1997 includes K Robert R. B. Dykes revenue and charges related to the sale of Symantec’s networking business (for March 1998 Quarter) Dieter Giesbrecht Exchange Commission is available Senior Vice President, unit (see Note 12 of Notes to Consolidated Financial Statements). Vice President, Europe, Middle East & Africa upon request without charge. Dec. 31, 1997 $ 0.37 Finance & Administration, ENRIK Please contact the Investor Relations H Flextronics International LTD Akihiko Narita Hotline at (800) 883-4497. Sep. 30, 1997 $ 0.35 Managing Director & President, Japan Additional investment-oriented Gordon E. Eubanks, Jr. questions may be directed to: President & Chief Executive Officer $ 0.32 Mansour Safai Jun. 30, 1997 Shelley Wilson Symantec Corporation Vice President, Internet Tools Investor Relations Photography: Business Unit Mar. 31, 1997 $ 0.15 Robert S. Miller Symantec Corporation 10201 Torre Avenue CLOSING STOCK PRICES Chairman of the Board, Enrique T. Salem Dec. 31, 1996 $ 0.25 Cupertino, California 95014-2132 Waste Management, Inc. Vice President, Security & Assistance (408) 446-8990 Business Unit Mar. 1998 $ 20.88 $ 29.00 Internet Tools, OLDSTEIN G Outside Counsel Royalties and Other Garry Sexton Dec. 1997 $ 19.19 $ 27.00 10% Vice President, Asia Pacific Fenwick & West Security and TEVEN Two Palo Alto Square S Sep. 1997 $ 19.44 $ 25.50 Assistance Rebecca Ranninger Palo Alto, California 94306 Vice President, Human Resources 50% Independent Auditors NET REVENUES Jun. 1997 $ 12.50 $ 20.38 40% Writing: Dana E. Siebert LLP Vice President, Americas Ernst & Young Mar. 1997 $ 12.63 $ 18.38 Remote 55 Almaden Boulevard $ 156,092 Productivity Mar. 31, 1998 San Jose, California 95113 Solutions Derek P. Witte Dec. 1996 $ 9.88 $ 16.38 Vice President, General Counsel & Secretary Dec. 31, 1997 $ 148,240 Annual Meeting RANCISCO ....... ........................................................ ................. ........ .................................... ..................................... ........ ................ ....... ........ .............................................. ........................... .................................... ..................................... ........ ................ F The annual meeting of Stockholders Sep. 30, 1997 $ 139,013 $0 $5 $10 $15 $20 $25 $30 AN will be held September 17, 1998, at , S REVENUE BY BUSINESS UNIT F OOTNOTES TO P AGE 3-7: Symantec Corporate Worldwide Jun. 30, 1997 $ 135,016 (prices by Quarter) (for Fiscal Year 1998) 1 Symantec Internal Reporting Headquarters, Cupertino, California. 11 International Data Corporation, 1998 HERMAN Mar. 31, 1997 $ 129,706 S 111 Symantec Survey, June 1997 1v PC Data Retail Report —The market share is based on the Remote Control/Remote Access category OOK as defined by Symantec. The following products are included: Symantec pcANYWHERE, Network Dec. 31, 1996 $ 124,081 C Associates Remote Desktop, Travelling Software Laplink, Stac Reachout, Netopia Timbuktu, Compaq Carbon Copy, Triton/Artisoft CoSession, Norton Lambert Close-Up, and Funk Proxy. v Soft Letter, April 1998 (in thousands) Design: Symantec and the Symantec logo are U.S. registered trademarks of Symantec Corporation. Microsoft, Windows, Windows NT, and the Windows logo are registered trademarks of Microsoft Corporation. = Fiscal 1998 Other brands and products are trademarks of their respective holder/s. = Fiscal 1997 ™ 1998 Annual Report Corporate Profile Symantec Corporation helps make users productive and keep their computers safe and reliable, anywhere and anytime. As the world leader in utility software for business and personal computing, Symantec is acclaimed for both its customer satisfaction and product brand recognition. The Company offers a broad range of solutions focused on addressing customer needs in three main areas: the Norton product line of anti-virus and PC- assistance products; products that cater to remote user productivity; and the Visual Café product lines in Internet development tools. Founded in 1982, Symantec Corporation The desktop. employs more than 2,300 people worldwide, A one-to-one customer relationship with headquarters in Cupertino, California. we build everyday. The stock is traded on NASDAQ under the symbol SYMC. Information on the Company and its products can be obtained by calling (800) 441-7234 toll free or (541) 334-6054, or accessed on the World Wide Web at www.symantec.com. Table of Contents Letter to Shareholders 2 Product Portfolio 9 Financial Reports 11 Corporate Directory 59 The following letter and report contain forward-looking statements that are subject to significant risks and uncertainties. Several important factors could cause actual results to differ materially from historical results and percentages and results anticipated by the forward-looking statements contained in this report. Readers should pay particular attention to the risk factors described in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Readers should carefully review the risk factors described in the other documents the Company files from time to time with the Securities and Exchange Commission, including the Annual Report on Form 10-K as filed by Symantec Corporation June 5, 1998. Letter to Shareholders 1 11 Symantec Corporation 10201 Torre Avenue Cupertino, CA 95014 Gordon E. Eubanks, Jr. President and Chief Executive Officer To our shareholders, I’m pleased to report to you that fiscal 1998 was the most successful year in Symantec’s history, with record revenue and profit achieved in each quarter. Through the hard work of our dedicated employees and partners, we met and surpassed the goals we set for ourselves, and consolidated our position as the world leader in providing utility software for business and personal computing. We closed fiscal 1998 with our sixth consecutive quarter of record revenue. Revenues in fiscal 1998 grew 22% over revenues in fiscal 1997. We increased gross margins to 85% while reducing operating expenses from 75% to 68% as a percentage of revenue. This resulted in an improvement in profit-before-tax from 7% to 19%.
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