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Business is about being connected in
THIS    A N N U A L R E P O R T C O N T A I N S F O R W A R D -LOOKING

STATEMENTS THAT INVOLVE KNOWN AND UNKNOWN

RISKS, UNCERTAINTIES AND OTHER FACTORS THAT

MAY CAUSE OUR ACTUAL RESULTS, LEVELS OF ACTIVITY, PERFORMANCE, OR

A C H I E V E M E N T S T O B E M A T E R I A L L Y D I F F E R E N T F R O M A N Y F U T U R E R E S U L T S,

LEVELS OF ACTIVITY, PERFORMANCE, OR ACHIEVEMENTS EXPRESSED OR

                                                                                    FACTORS
IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.                                SUCH
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  º
INCLUDE, AMONG OTHERS THINGS, THOSE RISK FACTORS SET

FORTH IN THE                         S               ON                     FOR THE YEAR
                      COMPANY            REPORT           FORM 10-K
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         SAN FRANCISCO




ENDED                           AND THE SECTION OF THAT REPORT ENTITLED                                                 S
          APRIL 2, 1999                                                                                MANAGEMENT

                   AND                   OF                                      AND                  OF
DISCUSSION                ANALYSIS            FINANCIAL CONDITION                       RESULTS            OPERATIONS.

WE    IDENTIFY FORWARD-LOOKING STATEMENTS BY WORDS SUCH AS                                                 MAY,   WILL,

                                                                                                                            P R E D I C T S,
 SHOULD,          COULD,         EXPECTS,         PLANS,        ANTICIPATES,            BELIEVES,          ESTIMATES,

                     OR    CONTINUE                                                                                          CANNOT
 POTENTIAL,                                   OR SIMILAR TERMS THAT REFER TO THE FUTURE.                            WE

GUARANTEE FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  ·
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         AMSTERDAM
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  »
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         B O M B AY
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         SYDNEY
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  À

                                                                                                                                                                                                                                                                                                                                                                                                                                                              TA B L E




                                                                                                                                                                                                                                                                                                                                             Form 10-K
                                                                                                                                                                                                                                                                                                                                                                                                                                                              OF




                                                                                                                                                                                                                                                                                                                                                                                           www
                                                                                                                                                                                                                                                                                                                                                                                                               Corporate Directory
                                                                                                                                                                                                                                                                                                                                                                                                                                     Letter to Stockholders




                                                                                                                                                                                                                                                                                                                                                                         ADDENDUM POCKET
                                                                                                                                                                                                                                                                                                                                                                                                                                                              CONTENTS




                                                                                                                                                                                                                                                                                                                                                                         21
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                         TOKYO
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  ¿




                                                                                                  1

                                          S Y M A N T E C C O R P O R AT I O N


                                          S Y M A N T E C C O R P O R AT I O N
                                                                                                  [ ]2
                                                                                                                                                                                                                                                                                                                                                 Chairman, President &
                                                                                                                                                                                                                                                                                                                                                                                            JOHN W. THOMPSON




                                                                                                                                                                                                                                                                                                                   Chief Executive Officer




                                                                                                                                               m a n y w a y s. S y m a n t ec C o r p o r a t i on 1 9 99 A n n u a l R e p o rt . T he h i g h - t e ch industry is on the verge of a new era of computing. In
                                                                                                                                                                                                                                                                                                                                                                         {

                                                                                                                                                           t h e y e a r s t o c o m e , d i g i t a l s m a r ts
TO    OUR      STOCKHOLDERS,                                                                                                                                                                                                             reflect the potential of our company. This has strengthened our resolve to work even harder to ensure


                 I am pleased to be able to speak with you for the first time as Chairman, President, and Chief Executive Officer                                                                                                                         that our results in the coming year meet or exceed your expectations. Our goals, simply stated, are to


                 of Symantec. I would like at the outset to thank the many of you— employees, stockholders, and customers— who                                                                                                                            grow equal to or faster than the peer companies in our industr y and to constantly improve the value of our


                 have so graciously and warmly welcomed me to our Company. I am indebted to you for that suppor t, and                                                                                                                                    s t o c k h o l d e r s ’ i n v e s t m e n t . To a c c o m p l i s h t h e s e o b j e c t i v e s , o u r t e a m h a s t h re e b r o a d i n i t i a t i v e s


                 I hope in this letter I may begin to repay your trust by sharing with you my goals and expectations for moving our                                                                                                                       under way: Internet-enabling not just our solutions, but our ver y mindset; walking longer and far ther in the


                 Company for ward.                      Many people have asked me why I chose to come to Symantec when I was in the                                                                                                                       shoes of our customers; and shifting our resources to meet the ever-growing and more complex needs of


                 prime of a long and successful career with IBM. It is indeed a reasonable question, and I offer the answer as a                                                                                                                          our enterprise user community.


                 testament as much to our Company’s future as to my own personal and professional aspirations.                                         What I                                                                                             SERVING           A   CONNECTED                WORLD



                 saw in Symantec was a company with extremely strong product leadership in its chosen markets, a remarkably                                                                                                                               No one doubts any longer that the Internet has changed not only our industr y but also our entire world—the


                 talented team of professionals, and a loyal, ravenous customer base. Here was an oppor tunity to take on the                                                                                                                             world of commerce, cer tainly, but also the world of ever yday interaction. “What would we do without email?” is


                 responsibility of turning a ver y good company into a great company, essentially by rethinking business                                                                                                                                  a question asked and answered by more and more of us each day. Whether it is empowering a team of


w o n ’ t m e a n w h a t i t d i d b e f o r e — a m a i n f r a m e , m i n i - c o m p u t e r , o r a P C . I n a c o n n e c t e d w o r l d , c o m p u t e r s s e a m l e s s l y c o m m u n i c a t e w i t h a v a s t a r r a y o f w i r e l e s s d e v i c es — a l l l i n k e d , a l l c o n n e c t e d , o f t e n i n v i s i b l y . T h e


                 strategies to meet the new and ever-changing demands of a connected world. What I’ve discovered since                                                                                                                                    knowledge workers who need instant communication for their jobs, or suppor ting a parent who has simply


                 I arrived—especially with regards to the energy of our people and the quality of their work—has ser ved only to                                                                                                                          gotten used to “talking” with their child ever y few days at college, the Internet is redefining our connections to


                 reaffirm my decision to join this terrific enterprise. While we have already accomplished much in the shor t time                                                                                                                        what is impor tant to us. This includes, of course, our access to the widest variety of resources imaginable, right


                 that I’ve been here, there is of course much more still to do. Before I discuss our agenda for the future,                                                                                                                               from our desktop, laptop, or mobile device.                                        What role does Symantec play in this new, connected


                                                                                                                                                                              [ ]4
                 however, let me recap our results of the past twelve months.                                 In fiscal 1999, revenues were $592.3                                                                                                        world? Put simply, we want to help our customers flourish in this ever more complex environment —by keeping
                                                                                                                                                                           3

                 million, a 11% increase over fiscal year 1998. Net income was $50.2 million, a 41% decrease from the                                                                                                                                     their network interactions safe and secure and their computing processes simple. This means protecting our



                                                                                                                                                                            S Y M A N T E C C O R P O R AT I O N


                                                                                                                                                                                                                   S Y M A N T E C C O R P O R AT I O N
                 prior year. This decrease was due largely to the cost of four acquisitions, in which related in-process R&D                                                                                                                              customers, as indeed we have always done, from new and unknown threats to their computing environment—


                 costs totaled $27.5 million. Net income per share for the year was $0.86, compared with $1.42 in fiscal year                                                                                                                             now, however, by using the expansive power of the Internet. At the same time, we want to help reduce the cost


                 1998                    Revenues from our international operations were quite strong, totaling $239 million, a                                                                                                                           of maintaining and suppor ting the growing number of devices that operate in today’s truly connected world.


                 21% increase over the prior fiscal year, and accounting for 40% of our total revenues.                                             Although                                                                                                        One of the ways we expect to accomplish this is by refocusing our attention on our traditional core


                 the Company enjoyed modest revenue growth in fiscal 1999, we believe these gains don’t suf ficiently                                                                                                                                     competencies of building security and connectivity-related solutions for individual consumers. To that end, in June
1999, we began the process of spinning off one of our three business units, Internet Tools, into a separate and                                                                                            solutions inside business units and then looking for suitable customers. To target our effor ts more efficiently,


          independent company. The new company will target the enterprise market with solutions for e-commerce and                                                                                                   we are committed to strengthening cross-company coordination of all our development, marketing, and business


          for web-enabling business systems and legacy applications. This refocused approach will allow us to better                                                                                                 alliance activities.           Second, because the information landscape is changing so quickly, customers


          leverage our skills and technologies, execute against oppor tunities much more quickly, and deliver enhanced                                                                                               don’t often know their exact wants and needs. This af fords us the oppor tunity to shape their expectations


          value for stockholders and customers alike.             Besides representing a significant strategic oppor tunity,                                                                                         with solutions to problems they might not even realize they have — to be perceived not merely as a reliable


          our new Internet Tools company is also a per fect example of our practicing what we preach: the value of                                                                                                   utility company but as a leading innovator in keeping our customers’ network environment safe, secure, and


          Internet-enabling all dimensions of an enterprise for greater business advantage. Our own business of selling,                                                                                             simple. We expect that our actions in this area will result in significant growth oppor tunities for our Company.


          marketing, and providing ser vice to our customers via the Internet is in fact growing rapidly. Today, 65% of all                                                                                          BUILDING       ENTERPRISE       SOLUTIONS



                                                                                                                                                                                                                     I am pleased to say that in fiscal 1999 we made measurable progress in building our business among enterprise
          Symantec’s technical suppor t is handled online. And with over 80% of our product registrations happening online,


                                                                                                                                                                                                                     customers. While we are maintaining our strong position in the consumer market with products such as Nor ton
          our LiveUpdate and LiveReg software are impor tant examples of the way Symantec has been moving rapidly to


                                                                                                                                                                                                                     SystemWorks and Nor ton AntiVirus, revenue from enterprise solutions drove much of the Company’s growth
          provide an interactive, web-based component for every key business process in our company.


opportunities for Symantec in this connected world are tremendous. The software and support services we supply are mission-critical to the enterprise. Symantec will continue to be known for solutions that enhance


                                                                                                                                                                                                                     during the past year, increasing to 39% of total revenue — up from 31% in the prior year.                     We
          THINKING       LIKE   OUR    CUSTOMERS



          As networks allow users to reach outward, beyond the walls of their home or of fice, our long heritage of                                                                                                  continue to see positive results stemming from two recent agreements. First, our purchase of Intel


          understanding the needs of these users has given us an extremely strong platform on which to build the new                                                                                                 Corporation’s anti-virus business in September 1998 has enabled us to license Intel systems management


          solutions they will require. Close attention to the way our customers think and work has long been a hallmark                                                                                              technology to create best-of-class anti-virus solutions for corporate organizations. In addition to enlisting our


          of our operating philosophy, and I am pleased to say that Symantec has continued to strengthen this awareness              []                                                                              suppor t for its vast number of registered anti-virus customers, Intel recommends Nor ton AntiVirus to its own
                                                                                                                               5                                                                                 6

          over the past few years.               However, one of the prerogatives I enjoy in my new capacity as head of                                                                                              corporate customers worldwide. Second, our partnership with IBM gives us increased access into the enterprise




                                                                                                                                                                          S Y M A N T E C C O R P O R AT I O N
                                                                                                                                   S Y M A N T E C C O R P O R AT I O N
          the Company is the right to be impatient. And because I believe that this fundamental initiative— learning to                                                                                              market, which in turn has generated more revenue among our largest customers.                     To help these


          think the way our customers do — is so critical to our future success, we must redouble our ef for ts to align                                                                                             customers manage data and data access on today’s heterogeneous networks, Symantec in fiscal 1999 again


          ourselves with the wants and needs of the people we ser ve, including both the enterprise buyer and the individual                                                                                         delivered award-winning solutions in the areas of content security, remote worker productivity, and complex


          consumer.               This customer-centric approach will yield two impor tant benefits. First, it will allow us                                                                                         Java business applications development. These solutions—from both our core business and our newly


          to better leverage our core technologies across well-understood market segments, instead of packaging                                                                                                      independent Internet Tools company—are ideally suited to the direction in which the connected world is moving:
toward ser ver-based application suppor t for devices that extend beyond PCs to PDAs, embedded controllers,


          communications devices, and much more. To that end, we are actively pursuing oppor tunities to par ticipate


          more broadly in the ser ver-based technology platforms that drive the growth of the Internet, and which


          will subsequently drive our Company’s growth as well.


          PUTTING           IT    ALL   TOGETHER



          As we execute against this strategy, we will constantly measure our progress using criteria that go beyond


          earnings and revenue growth. Criteria such as customer satisfaction, employee morale, development cycle


          time, product quality and cost, ser vice deliver y, and even the ways in which we foster innovation within


          our Company, will all become equally impor tant elements in deter mining our success.               These


          components, after all, are the building blocks of the overall Symantec brand; strengthening them solidifies


          the power and value of our name in the marketplace. And that, in turn, leads to the predictably consistent


user efficiency, effectiveness and productivity. With networks always on, customer demand for constant, reliable uptime can only intensify. The networked world must be safe, secure and simple. Over the next


          per formance that ultimately drives stockholder value.            Our industr y is in the midst of sweeping


          changes that af fect how each and ever y one of us will enjoy our lives. This tr uly creates an exciting


          time for our team at Symantec. I couldn’t be more pleased to be here, and I look for ward to working


          w i t h all of you — employees, stockholders, and customers — to cr eate an envir onment of success


                                                                                                                              []
          for us all. Once again, I thank you for your suppor t.
                                                                                                                        7                                                                                 8




                                                                                                                            S Y M A N T E C C O R P O R AT I O N


                                                                                                                                                                   S Y M A N T E C C O R P O R AT I O N
          Sincerely,




          J O H N W. T H O M P S O N


          CHAIRMAN, PRESIDENT & CHIEF EXECUTIVE OFFICER
TOYOTA MOTOR CORPORATION

                     ,                                                                                                                                                                                                                         ,
                                                                                                                                                                                                                                               FTD


                         Toyota Motor Credit Corporation (TMCC), who
                         employs 150,000 worldwide, needed a remote
                         software package that would allow Toyota’s trained                                                                                                                                                                    As the leading floral delivery company in quality,
                         technical support staff to diagnose and support                                                                                                                                                                       artistry and dependability, FTD connects
                         those remote sites from their own desktops. The                                                                                                                                                                       approximately 21,000 North American retail florists
                         product needed to be reliable, fast, and compatible                                                                                                                                                                   and supports an international floral delivery network
                         with the company’s existing Windows 95 and                                                                                                                                                                            of 54,000 affiliated FTD florists in 154 countries.
                         Windows NT environment.
                                                                                                                                                                                                                                                                         FTD’s “Floral Information Superhighway”, the
     TMCC chose pcAnywhere® from Symantec Corp.                                                                                                                                                                                                                          Mercury Network, is the premier electronic network
                                                                                                                                                                                                                                                                                                                                   FTD
     While pcAnywhere includes an impressive list of                                                                                                                                                                                                                     connecting over 21,000 North American retail florists.
                                                                                                                                                                                                                                                                                                                                   f ounded
     features that facilitate multiple uses, TMCC utilizes                                                                                                                                                                                                               The network processes approximately 15 million orders       1910
                                                                                                                                                                                                                                                                                                                                   in
     it to make sure critical data is transferred as efficiently                                                                                                                                                                                                         and messages annually. pcAnywhere will provide
     as possible in order to save time and money.                                                                                                                                                                                                                        FTD florists the ability to easily access the FTD
                                                                                                                                                                                                                                                                         Help Desk securely and reliably anytime, anywhere,
                                                                                                                                                                                                                                                                         to receive hands-on technical support. This support
                                                                                                                                                                                                                                                                         allows FTD to provide a greater level of service to its
                                                                                                                                                                                                                                                                         customers and simplify the florists’ experience with
                                                                                                                                                                                                                                                                         the Help Desk while reducing FTD’s support costs.



several years, businesses will be investing billions of dollars to build and maintain networks that connect their entire value chain—customers, employees and partners. Anytime, anywhere. Dependable access to



                                                                                 Z        Z       Z          Jeff Ly, Senior Programmer/Analyst at
                                                                               TMCC, explains, “The coordinators at our various remote sites
                                                                               must be able to auction off their vehicles at the best price. In order
                                                                               to determine what each best price is, they must know their inventory
                                                                               as well as the condition of the particular vehicle in question.
                                                                               pcAnywhere helps us maintain a reliable link between offices as
                                                                               the coordinators send their data back to our corporate headquarters
                                                                               for statistical analysis. If our coordinators are unable to access or
                                                                                                                                                              []
                                                                               send data, whether the problem is due to our custom application          9                                                                                 10
                                                                               or to the database containing the information, they can’t make a
                                                                                                                                                            S Y M A N T E C C O R P O R AT I O N


                                                                                                                                                                                                   S Y M A N T E C C O R P O R AT I O N
                                                                               sale. It’s that simple.”




                                                                                                                                                                                                                                                   a a a “With the inclusion of powerhouse
                                                                                                                                                                                                                                               applications such as Symantec’s Norton AntiVirus® and pcAnywhere,
                                                          R
                                                                                                                                                                                                                                               Mercury Wings offers a whole new level of big-time capabilities to
                                                                   N
                                                                                                                                                                                                                                               even the smallest floral shops.” says Bob Norton, President and CEO
                                                                   D
                                                                                                                                                                                                                                               of FTD. “Norton AntiVirus and pcAnywhere add valuable protection
                                                                   2
                                                                                                                                                                                                                                               and support capabilities to our Mercury Wings users worldwide.”
                                                                   L
LANDAMERICA




                                                                                                                                                                                        LandAmerica purchased licenses for 7,200 seats
                                                                                                                                                                                        each of Norton Ghost,® Norton AntiVirus and
                                                                                                                                                                                        Norton Utilities’ SpeedDisk® and 7,000 seats of
                                                                                                                                                                                        pcAnywhere. As one of the largest U.S. operated
                                                                                                                                                                                        real estate title insurance companies, the multi-
                                                                                                                                                                                        product purchase will improve network efficiency,
                                                                                                                                                                                        increase competitiveness and capture a bigger piece
                                                                                                                                                                                        of the market, stated Bob Kuntz, a LandAmerica
                                                                                                                                                                                        Vice President.




information, resources, and people empowers global business. Organizations with distributed computing environments require technology solutions that permit consistent availability of applications and data, and




                                     Digital information in-
                                     frastructure will be so
                                     d e p e n da b l e a n d p e rva s i v e
                                     it will be ingrained into
                                     t h e c o n t e x t o f da i ly l i f e
                                     (work and home).
                                                                                                            [ ]12
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                                                                                                          S Y M A N T E C C O R P O R AT I O N


                                                                                                                                                 S Y M A N T E C C O R P O R AT I O N


                                                                                                                                                                                                                     w w w LandAmerica, which has more than 600
                                                                                                                                                                                                                  offices bought Norton Ghost to speed a corporate-wide upgrade
                                                                                                                                                                                                                  from UNIX terminals to Windows NT workstations, and to rapidly
                                                                                                                                                                                                                  deploy LandAmerica’s proprietary title insurance underwriting
                                                                                                                                                                                                                  management software program. pcAnywhere is aimed at improving
                                                                                                                                                                                                                  IS efficiency and reducing costs by remotely fixing PC and server
                                                                                                                                                                                                                  problems in over 40 regional locations. “Symantec was able to
                                                                                                                                                                                                                  offer solutions that met our needs and was the only vendor able to
                                                                                                                                                                                                                  offer everything we needed,” said Kuntz.
ORACLE
                                                                                                                                                                                                                             z

                                                                                                                                                                                                                                   Oracle, the world’s second largest software company
                                                                                                                                                                                                                                   and the leading supplier of software for enterprise
                                                                                                                                                                                                                                   information management, renewed a 29,000 seat
                                                                                                                                                                                                                                   license for Norton AntiVirus and purchased licenses
                                                                                                                                                                                                                                   for 29,000 Norton Ghost, 20,000 Norton 2000®
                                                                                                                                                                                                                                   and 29,000 pcAnywhere.

                                                                                                                                                                                                                                   The single engine architecture in Norton AntiVirus
                                                                                                                                                                                                                                   was a key factor in the renewal of Oracle’s anti-virus
                                                                                                                                                                                                                                   license. All Norton AntiVirus engines come from
                                                                                                                                                                                                                                   a single code-base so that modifications or updates
                                                                                                                                                                                                                                   to the engine, in response to new viruses, can be
                                                                                                                                                                                                                                   applied across multiple platforms in a single, cost-
                                                                                                                                                                                                                                   efficient deployment as part of the LiveUpdate®
                                                                                                                                                                                                                                   process to install new virus definitions.



facilitate the user’s ability to achieve more in less time. As transactions increase, companies will integrate a greater numbe r of parts into the networked whole, while controlling the costs of proliferating technology.




                                                                                                 %
                                                                  IBM GLOBAL SERVICES

                                                                                                                                                                                                            a a a “Symantec’s family of corporate software
                                                                                                                                                                                                       solutions offers best-of-breed technology and is backed up by high
                                                                                                                                                                                                       levels of customer service and technical support,” said Gary Roberts,
                                                                  Jose Medeiros, NT Systems Administrator, is a fan                                                                                    Vice President, Americas IT for Oracle Corporation.
                                                                  of Norton Utilities® for NT and Norton Utilities’
                                                                                                                                                                                                                                 “We have been a Norton AntiVirus customer since
                                                                  System Doctor, which he finds helpful for
                                                                                                                           [ ]14                                                                                                  1994 and have been impressed not only by the way
                                                                                                                        13
                                                                  monitoring network traffic.
                                                                                                                                                                                                                                  the technology protects our network from virus
                                                                       ( ( ( “We have a T1 line that                     S Y M A N T E C C O R P O R AT I O N


                                                                                                                                                                S Y M A N T E C C O R P O R AT I O N
                                                                                                                                                                                                                                  infection, but also because Symantec has developed
                                                                  gets clogged right after lunch because so many                                                                                                                  Norton AntiVirus to be easy and cost-effective
                                                                  people are coming back and getting on the Web.                                                                                                                  to deploy and manage.”
                                                                  After 5:00, the performance increases, as bandwidth
                                                                  becomes available. I set up the System Doctor to
                                                                  monitor traffic—when it slows below standard, it
                                                                  alerts me that something is in trouble. If I am not
                                                                  getting any connectivity, I know we have a problem
                                                                  with a router, or the T1 line is down, etc.”
h
                                                                                                                                                                                   3M




                                                                                                                                                                                   3M is a diversified manufacturing company with
                                                                                                                                                                                   operations in more than 60 countries and employs
                                                                                                                                                                                   more than 71,000 people worldwide. The company
                                                                                                                                                                                   currently uses nearly all languages of Norton
                                                                                                                                                                                   AntiVirus — including Spanish, French, German,
                                                                                                                                                                                   Portuguese, Korean, Chinese, and Japanese — to
                                                                                                                                                                                   protect its approximately 44,000 workstations
                                                                                                                                                                                   around the world. A key factor in winning the 3M evaluation process
                                                                                                                                                                                                      was Symantec’s reputation for quality customer
                                                                                                                                                                                                      service worldwide, which includes around-the-
                                                                                                                                                                                                      clock backing by the Symantec AntiVirus Research
                                                                                                                                                                                                      Center ™ (SARC). In order to stay ahead of the
                                                                                                                                                                                                      accelerating proliferation of new computer viruses,
                                                                                                                                                                                                      SARC offers customer support through fully
                                                                                                                                                                                                      staffed research centers in the Americas, Europe,
                                                                                                                                                                                                      and Asia Pacific.




As Symantec extends its reach with broader enterprise solutions, we’ll ensure our competitive place in the connected world by continuing to foster strategic partnerships with industry leaders and aggressively




                                                                                                                                                                                      w w w “As viruses become more sophisticated
                                                                                                                                                                                   and prevalent, it is critical that corporations protect not only their
                                                                                                                                                                                   workstations, but their file, print, and email servers, firewalls, and
                                                                                                                                                                                   Internet email gateways,” said Dave Ostby, IT LAN Services Analyst
                                                                                                                                                                                   at 3M. “Having seen the level of protection our 44,000 workstations
                                                                                                                                                                                   across the globe receive with Norton AntiVirus, we are confident
                                                                                                                                                                                   that installing Norton AntiVirus throughout 3M will greatly reduce
                                                                                                                                                                                   the risk of virus infection from any source.”
                                                                                                         [ ]16
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                                                                                                     S Y M A N T E C C O R P O R AT I O N


                                                                                                                                            S Y M A N T E C C O R P O R AT I O N
CATERPILLAR
                                                                                                                                                                                             .

                                                                                                                                                                                   Caterpillar, the world’s largest manufacturer of
                                                                                                                                                                                   construction and mining equipment, diesel and
                                                                                                                                                                                   natural gas engines and industrial gas turbines,
                                                                                                                                                                                   selected Symantec as their anti-virus protection
                                                                                                                                                                                   solution for its worldwide desktop network.

                                                                                                                                                                                                   Caterpillar is a Fortune 500 company with representation
                                                                                                                                                                                                   in every major market in the world. With the deployment
                                                                                                                                                                                                   of Norton AntiVirus the corporate network is secure and
                                                                                                                                                                                                   free of viruses.




pursuing under-penetrated global markets. Our software will be essential to our customers’ ability to manage the increasing complexity of their connected environments. Efficiently, and more cost-effectively.




                                                                                                        [ ]18
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                                                                                                     S Y M A N T E C C O R P O R AT I O N


                                                                                                                                            S Y M A N T E C C O R P O R AT I O N
C                   D
                                                                                                                                                                                                             ORPORATE            IRECTORY




                                                                                                                                                                                                                                                         BOARD          DIRECTORS
                                                                                                                                                                                                                                                                   Oƒ




                                                                                                                                                                                                                                                                                                  Robert R. B. Dykes
                                                                                                                                                                                                                                                         Tania Amochaev
                                                                                     L                                                                                                                                                                                                            Senior Vice President,
                                                                                                                                                                                                                                                         Chairman of the Executive Committee,
                                                            H&R BLOCK INC.
                                                                                                                                                                                                                                                                                                  Finance & Administration,
                                                                                                                                                                                                                                                         QRS Corporation
                                                                                                                                                                                                                                                                                                  Flextronics International LTD
                                                                                                                                                                                                                                                         Charles M. Boesenberg
                                                                                                                                                                                                                                                                                                  Robert S. Miller
                                                                                                                                                                                                                                                         President & CEO, Integrated Systems
                                                                                                                                                                                                                                                                                                  Chairman of the Board,
                                                            H&R Block served more than 18 million taxpayers
                                                                                                                                                                                                                                                                                                  Waste Management, Inc. (Retired )
                                                                                                                                                                                                                                                         Walter W. Bregman
                                                            in nearly 10,000 offices in the United States, Canada
                                                                                                                                                                                                                                                         Chairman & Co-Chief Executive Officer,
                                                            and Australia in 1998. It handled approximately one
                                                                                                                                                                                                                                                                                                  John W. Thompson
                                                                                                                                                                                                                                                         S&B Enterprises
                                                            in every seven returns and 51 percent of all electronic
                                                                                                                                                                                                                                                                                                  Chairman, President &
                                                            returns filed with the Internal Revenue Service last
                                                                                                                                                                                                                                                                                                  Chief Executive Officer,
                                                                                                                                                                                                                                                         Carl D. Carman
                                                            tax season.                                                                                                                                                                                                                           Symantec Corporation
                                                                                                                                                                                                                                                         General Partner, Hill, Carman Ventures




The networked marketplace demands the vital software and services we provide, and we are intent upon leveraging our unique technologies across both old and new customer segments. We have the products, people,



                     Z        Z       Z          Because we must generate most of our
                                                                                                                                                                                                         C O R P O R AT E O F F I C E R S
                  fiscal year revenue in just the first 105 days of the year, downtime
                                                                                                                                                                                                         & KEY EMPLOYEES
                  during that period directly impacts our bottom line, said Jim Rose,
                  Chief Information Officer for H&R Block. After searching for an
                  anti-virus solution to protect the 100,000 computers we use to prepare
                                                                                                                                                                                                         John W. Thompson                                                                         Enrique T. Salem
                                                                                                                                                                                                                                                         Gregory Myers
                  tax returns and carefully evaluating several competitors products,
                                                                                                                                                                                                         Chairman, President &                                                                    Chief Technology Officer
                                                                                                                                                                                                                                                         Vice President, Finance &
                  we determined that the protection offered by Norton AntiVirus,
                                                                                                                                                                                                         Chief Executive Officer                                                                  Vice President, Security & Assistance
                                                                                                                                                                                                                                                         Chief Financial Officer
                  Norton Utilities and pcAnywhere was the best buy for our money.
                                                                                                                                                                                                                                                                                                  Business Unit
                                                                                                                             [ ]20
                                                                                                                      19                                                                                 Christopher Calisi                              Akihiko Narita
                                                                                                                                                                                                         Vice President, Remote Productivity Solutions                                            Garry Sexton
                                                                                                                                                                                                                                                         Managing Director & President, Japan



                                                                                                                           S Y M A N T E C C O R P O R AT I O N


                                                                                                                                                                  S Y M A N T E C C O R P O R AT I O N
                                                                                                                                                                                                         Business Unit                                                                            Vice President, Asia Pacific
                                                                                                                                                                                                                                                         Rebecca Ranninger
                                                                                                                                                                                                         Thomas M. Darnall                                                                        Dana E. Siebert
                                                                                                                                                                                                                                                         Vice President, Human Resources
                                                                                                                                                                                                         Vice President, Corporate Services                                                       Executive Vice President,
                                                                                                                                                                                                                                                                                                  Worldwide Sales, Marketing & Services
                                                                                                                                                                                                                                                         Keith Robinson
                                                                                                                                                                                                         Dieter Giesbrecht                               Vice President, Americas
                                                                                                                                                                                                         Vice President, Europe, Middle East & Africa                                             Derek P. Witte
                                                                                                                                                                                                                                                                                                  Vice President, Worldwide Operations
                                                                                                                                                                                                                                                         Mansour Safai
                                                                                                                                                                                                                                                         Vice President & General Manager,
                                                                                                                                                                                                                                                                                                  Arthur Courville
                                                                                                                                                                                                                                                         Internet Tools
                                                                                                                                                                                                                                                                                                  Vice President & General Counsel
                                                                                                                                                                                                                                                         Business Unit
CORPORATE HEADQUARTERS                          INVESTOR RELATIONS                                                   OUTSIDE COUNSEL
       Symantec Corporation                            A copy of the Company’s Form 10-K                                    Fenwick & West
       20300 Stevens Creek Boulevard, Suite 200        for the fiscal year ended April 2nd, 1999                            Two Palo Alto Square
       Cupertino, California 95014                     as filed with the Securities and Exchange                            Palo Alto, California 94306
       (408) 253-9600                                  Commission is available upon request
                                                                                                                            INDEPENDENT AUDITORS
                                                       without charge.
       TRANSFER AGENT                                                                                                       Ernst & Young LLP
                                                       Please contact the Investor Relations
       Boston Equiserve LP                                                                                                  55 Almaden Boulevard
                                                       Hotline at (800) 883-4497. Additional
       P. O. Box 1666                                                                                                       San Jose, California 95113
                                                       investment-oriented questions may be
       Boston, Massachusetts 02105-1666                directed to:
                                                                                                                            ANNUAL MEETING
                                                       Shelley Wilson
                                                                                                                            The annual meeting of Stockholders
                                                       Investor Relations
                                                                                                                            will be held September 15, 1999,
                                                       Symantec Corporation
                                                                                                                            at Symantec Corporate Worldwide
                                                       20300 Stevens Creek Boulevard, Suite 200
                                                                                                                            Headquarters, Cupertino, California.
                                                       Cupertino, California 95014
                                                       (408) 446-8990




and the passion to deliver. The company that is positioned to help businesses and individuals capitalize on all the opportunities of a connected world is




          CORPORATE PROFILE


          Founded in 1982, Symantec Corporation provides software             spanning North America, Europe, Japan, and several fast-
          solutions that keep customers network interactions safe and         growing markets throughout Asia Pacific and Latin America.
          secure and their computing processes simple. These solutions        The Company s stock is traded on Nasdaq under the                                                                                [
                                                                                                                                                                                                        21
          help reduce the cost of maintaining and supporting the growing      symbol SYMC. Information on the Company and its prod-
          number of devices that operate in today s connected world.          ucts can be obtained by calling (800) 441-7234 toll free or                                                                    S Y M A N T E C C O R P O R AT I O N

             Symantec is based in Cupertino, California, and employs          (541) 334-6054, or accessed on the World Wide Web at
          more than 2,400 people around the world, with operations            www.symantec.com.


                                                                              SYMANTEC AND THE SYMANTEC LOGO ARE U.S. REGISTERED TRADEMARKS OF
                                                                              S Y M A N T E C C O R P O R A T I O N . M I C R O S O F T, W I N D O W S , W I N D O W S N T, A N D T H E
                                                                              W I N D O W S L O G O A R E R E G I S T E R E D T R A D E M A R K S O F M I C R O S O F T C O R P O R AT I O N .
                                                                              OTHER B R A N D S A N D P RO D U C T S A R E T R A D E M A R K S O F T H E I R R E S P E C T I V E H O L D E R /S.

                                                                              © 1 9 9 9 S Y M A N T E C C O R P O R AT I O N . A L L R I G H T S R E S E RV E D . P R I N T E D I N T H E U . S . A .
                                                                                                               PR I N T E D O N R E C Y C L E D PA P E R .
                                                                              7/99 1960-AR-99




                                                                                                                                                                                                                                                    09-71-00337
     DESIGN: COOKSHERMAN /SF      WRITING: STEVEN GOLDSTEIN          PHOTOGRAPHY: HENRIK KAM; MEL CURTIS                                         PRINTING: PRINTING BY DESIGN
UNITED STATES
            SECURITIES AND EXCHANGE COMMISSION
                                             Washington, D. C. 20549
                                                      FORM 10-K
     (Mark One)
         ü        Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
                  for the Fiscal Year Ended April 2, 1999.
                                                         OR
                  Transition Report Pur suant to Section 13 or 15(d) of the Securities Exchange Act of
                  1934 for the Transition Period from ______ to ______.
                                             Commission File Number 0-17781
X                                                                                                                     X




                       SYMANTEC CORPORATION
                                          (Exact name of registrant as specified in its charter)

                                       Delaware                                       77-0181864
                               (State or other jurisdiction of                       (I.R.S. Employer
                              incorporation or organization)                        Identification No.)

                              10201 Torre Avenue, Cupertino, California                      95014-2132
                                        (Address of principal executive offices)                (zip code)

                          Registrant’s telephone number, including area code: (408) 253-9600
X                                                                                                                     X

                                Securities registered pursuant to Section 12(b) of the Act:
                                        None                                 None
                                    (Title of each class)               (Name of each exchange on which registered)

                             Securities registered pursuant to Section 12(g) of the Act:
                   Common Stock, par value $0.01 per share, and Related Stock Purchase Rights
                                                                 (Title of class)

    Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or
    15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
    that the registrant was required to file such reports), and (2) has been subject to such filing requirements
    for the past 90 days.
                                                ü
                                     YES                                   NO
    Indicate by check mark if disclosure of delinquent filer pursuant to Item 405 of Regulation S-K is not
    contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or
    information statements incorporated by reference in Part III of this Form 10-K or any amendment to this
    Form 10-K. [ ]
    Aggregate market value of the voting stock held by non-affiliates of the registrant, based upon the closing
    sale price of the Symantec common stock on June 15, 1999 as reported on the Nasdaq National Market
    and with respect to the Delrina exchangeable stock on the Toronto Stock Exchange:
                                                            $1,391,941,376
    Number of shares outstanding of each of the registrant’s classes of common stock, including 1,659,684 shares of
    Delrina exchangeable stock, as of June 15, 1999:
                                                                 56,098,393

                                 DOCUMENTS INCORPORATED BY REFERENCE
    Portions of the definitive Proxy Statement to be delivered to stockholders in connection with the Annual
    Meeting of Stockholders to be held September 15, 1999 are incorporated by reference into Part III.
SYMANTEC CORPORATION
                                                                                FORM 10-K
                                                          For the Fiscal Year Ended April 2, 1999
                                                                            Table of Contents

                                                                                   PART I.

                                                                                                                                                         Page

Item 1.          Business ............................................................................................................................    2

Item 2.          Properties ..........................................................................................................................   11

Item 3.          Legal Proceedings.............................................................................................................          11

Item 4.          Submission of Matters to a Vote of Security Holders .......................................................                             12

                                                                                   PART II.

Item 5.          Market for Registrant’s Common Equity and Related Stockholder Matters .....................                                             13

Item 6.          Selected Financial Data.....................................................................................................            14

Item 7.          Management’s Discussion and Analysis of Financial Condition and Results
                 of Operations.....................................................................................................................      15

Item 7A. Quantitative and Qualitative Disclosures about Market Risk............................................                                          33

Item 8.          Financial Statements and Supplementary Data .................................................................                           35

Item 9.          Changes in and Disagreements with Accountants on Accounting and Financial
                 Disclosure .........................................................................................................................    35

                                                                                  PART III.

Item 10.         Directors and Executive Officers of the Registrant...........................................................                           36

Item 11.         Executive Compensation...................................................................................................               38

Item 12.         Security Ownership of Certain Beneficial Owners and Management ...............................                                          38

Item 13.         Certain Relationships and Related Transactions ...............................................................                          38

                                                                                  PART IV.

Item 14.         Exhibits, Financial Statement Schedules and Reports on Form 8-K .................................                                       38

Signatures ...........................................................................................................................................   77

“Symantec,” “we,” “us,” and “our” refer to Symantec Corporation and all of its subsidiaries. This document
contains references to trademarks and trade names of other companies.



                                                                                        1
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symc_annual1999

  • 1.
  • 2. Business is about being connected in
  • 3. THIS A N N U A L R E P O R T C O N T A I N S F O R W A R D -LOOKING STATEMENTS THAT INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT MAY CAUSE OUR ACTUAL RESULTS, LEVELS OF ACTIVITY, PERFORMANCE, OR A C H I E V E M E N T S T O B E M A T E R I A L L Y D I F F E R E N T F R O M A N Y F U T U R E R E S U L T S, LEVELS OF ACTIVITY, PERFORMANCE, OR ACHIEVEMENTS EXPRESSED OR FACTORS IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH º INCLUDE, AMONG OTHERS THINGS, THOSE RISK FACTORS SET FORTH IN THE S ON FOR THE YEAR COMPANY REPORT FORM 10-K SAN FRANCISCO ENDED AND THE SECTION OF THAT REPORT ENTITLED S APRIL 2, 1999 MANAGEMENT AND OF AND OF DISCUSSION ANALYSIS FINANCIAL CONDITION RESULTS OPERATIONS. WE IDENTIFY FORWARD-LOOKING STATEMENTS BY WORDS SUCH AS MAY, WILL, P R E D I C T S, SHOULD, COULD, EXPECTS, PLANS, ANTICIPATES, BELIEVES, ESTIMATES, OR CONTINUE CANNOT POTENTIAL, OR SIMILAR TERMS THAT REFER TO THE FUTURE. WE GUARANTEE FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS. · AMSTERDAM » B O M B AY SYDNEY À TA B L E Form 10-K OF www Corporate Directory Letter to Stockholders ADDENDUM POCKET CONTENTS 21 20 3 TOKYO ¿ 1 S Y M A N T E C C O R P O R AT I O N S Y M A N T E C C O R P O R AT I O N [ ]2 Chairman, President & JOHN W. THOMPSON Chief Executive Officer m a n y w a y s. S y m a n t ec C o r p o r a t i on 1 9 99 A n n u a l R e p o rt . T he h i g h - t e ch industry is on the verge of a new era of computing. In { t h e y e a r s t o c o m e , d i g i t a l s m a r ts
  • 4. TO OUR STOCKHOLDERS, reflect the potential of our company. This has strengthened our resolve to work even harder to ensure I am pleased to be able to speak with you for the first time as Chairman, President, and Chief Executive Officer that our results in the coming year meet or exceed your expectations. Our goals, simply stated, are to of Symantec. I would like at the outset to thank the many of you— employees, stockholders, and customers— who grow equal to or faster than the peer companies in our industr y and to constantly improve the value of our have so graciously and warmly welcomed me to our Company. I am indebted to you for that suppor t, and s t o c k h o l d e r s ’ i n v e s t m e n t . To a c c o m p l i s h t h e s e o b j e c t i v e s , o u r t e a m h a s t h re e b r o a d i n i t i a t i v e s I hope in this letter I may begin to repay your trust by sharing with you my goals and expectations for moving our under way: Internet-enabling not just our solutions, but our ver y mindset; walking longer and far ther in the Company for ward. Many people have asked me why I chose to come to Symantec when I was in the shoes of our customers; and shifting our resources to meet the ever-growing and more complex needs of prime of a long and successful career with IBM. It is indeed a reasonable question, and I offer the answer as a our enterprise user community. testament as much to our Company’s future as to my own personal and professional aspirations. What I SERVING A CONNECTED WORLD saw in Symantec was a company with extremely strong product leadership in its chosen markets, a remarkably No one doubts any longer that the Internet has changed not only our industr y but also our entire world—the talented team of professionals, and a loyal, ravenous customer base. Here was an oppor tunity to take on the world of commerce, cer tainly, but also the world of ever yday interaction. “What would we do without email?” is responsibility of turning a ver y good company into a great company, essentially by rethinking business a question asked and answered by more and more of us each day. Whether it is empowering a team of w o n ’ t m e a n w h a t i t d i d b e f o r e — a m a i n f r a m e , m i n i - c o m p u t e r , o r a P C . I n a c o n n e c t e d w o r l d , c o m p u t e r s s e a m l e s s l y c o m m u n i c a t e w i t h a v a s t a r r a y o f w i r e l e s s d e v i c es — a l l l i n k e d , a l l c o n n e c t e d , o f t e n i n v i s i b l y . T h e strategies to meet the new and ever-changing demands of a connected world. What I’ve discovered since knowledge workers who need instant communication for their jobs, or suppor ting a parent who has simply I arrived—especially with regards to the energy of our people and the quality of their work—has ser ved only to gotten used to “talking” with their child ever y few days at college, the Internet is redefining our connections to reaffirm my decision to join this terrific enterprise. While we have already accomplished much in the shor t time what is impor tant to us. This includes, of course, our access to the widest variety of resources imaginable, right that I’ve been here, there is of course much more still to do. Before I discuss our agenda for the future, from our desktop, laptop, or mobile device. What role does Symantec play in this new, connected [ ]4 however, let me recap our results of the past twelve months. In fiscal 1999, revenues were $592.3 world? Put simply, we want to help our customers flourish in this ever more complex environment —by keeping 3 million, a 11% increase over fiscal year 1998. Net income was $50.2 million, a 41% decrease from the their network interactions safe and secure and their computing processes simple. This means protecting our S Y M A N T E C C O R P O R AT I O N S Y M A N T E C C O R P O R AT I O N prior year. This decrease was due largely to the cost of four acquisitions, in which related in-process R&D customers, as indeed we have always done, from new and unknown threats to their computing environment— costs totaled $27.5 million. Net income per share for the year was $0.86, compared with $1.42 in fiscal year now, however, by using the expansive power of the Internet. At the same time, we want to help reduce the cost 1998 Revenues from our international operations were quite strong, totaling $239 million, a of maintaining and suppor ting the growing number of devices that operate in today’s truly connected world. 21% increase over the prior fiscal year, and accounting for 40% of our total revenues. Although One of the ways we expect to accomplish this is by refocusing our attention on our traditional core the Company enjoyed modest revenue growth in fiscal 1999, we believe these gains don’t suf ficiently competencies of building security and connectivity-related solutions for individual consumers. To that end, in June
  • 5. 1999, we began the process of spinning off one of our three business units, Internet Tools, into a separate and solutions inside business units and then looking for suitable customers. To target our effor ts more efficiently, independent company. The new company will target the enterprise market with solutions for e-commerce and we are committed to strengthening cross-company coordination of all our development, marketing, and business for web-enabling business systems and legacy applications. This refocused approach will allow us to better alliance activities. Second, because the information landscape is changing so quickly, customers leverage our skills and technologies, execute against oppor tunities much more quickly, and deliver enhanced don’t often know their exact wants and needs. This af fords us the oppor tunity to shape their expectations value for stockholders and customers alike. Besides representing a significant strategic oppor tunity, with solutions to problems they might not even realize they have — to be perceived not merely as a reliable our new Internet Tools company is also a per fect example of our practicing what we preach: the value of utility company but as a leading innovator in keeping our customers’ network environment safe, secure, and Internet-enabling all dimensions of an enterprise for greater business advantage. Our own business of selling, simple. We expect that our actions in this area will result in significant growth oppor tunities for our Company. marketing, and providing ser vice to our customers via the Internet is in fact growing rapidly. Today, 65% of all BUILDING ENTERPRISE SOLUTIONS I am pleased to say that in fiscal 1999 we made measurable progress in building our business among enterprise Symantec’s technical suppor t is handled online. And with over 80% of our product registrations happening online, customers. While we are maintaining our strong position in the consumer market with products such as Nor ton our LiveUpdate and LiveReg software are impor tant examples of the way Symantec has been moving rapidly to SystemWorks and Nor ton AntiVirus, revenue from enterprise solutions drove much of the Company’s growth provide an interactive, web-based component for every key business process in our company. opportunities for Symantec in this connected world are tremendous. The software and support services we supply are mission-critical to the enterprise. Symantec will continue to be known for solutions that enhance during the past year, increasing to 39% of total revenue — up from 31% in the prior year. We THINKING LIKE OUR CUSTOMERS As networks allow users to reach outward, beyond the walls of their home or of fice, our long heritage of continue to see positive results stemming from two recent agreements. First, our purchase of Intel understanding the needs of these users has given us an extremely strong platform on which to build the new Corporation’s anti-virus business in September 1998 has enabled us to license Intel systems management solutions they will require. Close attention to the way our customers think and work has long been a hallmark technology to create best-of-class anti-virus solutions for corporate organizations. In addition to enlisting our of our operating philosophy, and I am pleased to say that Symantec has continued to strengthen this awareness [] suppor t for its vast number of registered anti-virus customers, Intel recommends Nor ton AntiVirus to its own 5 6 over the past few years. However, one of the prerogatives I enjoy in my new capacity as head of corporate customers worldwide. Second, our partnership with IBM gives us increased access into the enterprise S Y M A N T E C C O R P O R AT I O N S Y M A N T E C C O R P O R AT I O N the Company is the right to be impatient. And because I believe that this fundamental initiative— learning to market, which in turn has generated more revenue among our largest customers. To help these think the way our customers do — is so critical to our future success, we must redouble our ef for ts to align customers manage data and data access on today’s heterogeneous networks, Symantec in fiscal 1999 again ourselves with the wants and needs of the people we ser ve, including both the enterprise buyer and the individual delivered award-winning solutions in the areas of content security, remote worker productivity, and complex consumer. This customer-centric approach will yield two impor tant benefits. First, it will allow us Java business applications development. These solutions—from both our core business and our newly to better leverage our core technologies across well-understood market segments, instead of packaging independent Internet Tools company—are ideally suited to the direction in which the connected world is moving:
  • 6. toward ser ver-based application suppor t for devices that extend beyond PCs to PDAs, embedded controllers, communications devices, and much more. To that end, we are actively pursuing oppor tunities to par ticipate more broadly in the ser ver-based technology platforms that drive the growth of the Internet, and which will subsequently drive our Company’s growth as well. PUTTING IT ALL TOGETHER As we execute against this strategy, we will constantly measure our progress using criteria that go beyond earnings and revenue growth. Criteria such as customer satisfaction, employee morale, development cycle time, product quality and cost, ser vice deliver y, and even the ways in which we foster innovation within our Company, will all become equally impor tant elements in deter mining our success. These components, after all, are the building blocks of the overall Symantec brand; strengthening them solidifies the power and value of our name in the marketplace. And that, in turn, leads to the predictably consistent user efficiency, effectiveness and productivity. With networks always on, customer demand for constant, reliable uptime can only intensify. The networked world must be safe, secure and simple. Over the next per formance that ultimately drives stockholder value. Our industr y is in the midst of sweeping changes that af fect how each and ever y one of us will enjoy our lives. This tr uly creates an exciting time for our team at Symantec. I couldn’t be more pleased to be here, and I look for ward to working w i t h all of you — employees, stockholders, and customers — to cr eate an envir onment of success [] for us all. Once again, I thank you for your suppor t. 7 8 S Y M A N T E C C O R P O R AT I O N S Y M A N T E C C O R P O R AT I O N Sincerely, J O H N W. T H O M P S O N CHAIRMAN, PRESIDENT & CHIEF EXECUTIVE OFFICER
  • 7. TOYOTA MOTOR CORPORATION , , FTD Toyota Motor Credit Corporation (TMCC), who employs 150,000 worldwide, needed a remote software package that would allow Toyota’s trained As the leading floral delivery company in quality, technical support staff to diagnose and support artistry and dependability, FTD connects those remote sites from their own desktops. The approximately 21,000 North American retail florists product needed to be reliable, fast, and compatible and supports an international floral delivery network with the company’s existing Windows 95 and of 54,000 affiliated FTD florists in 154 countries. Windows NT environment. FTD’s “Floral Information Superhighway”, the TMCC chose pcAnywhere® from Symantec Corp. Mercury Network, is the premier electronic network FTD While pcAnywhere includes an impressive list of connecting over 21,000 North American retail florists. f ounded features that facilitate multiple uses, TMCC utilizes The network processes approximately 15 million orders 1910 in it to make sure critical data is transferred as efficiently and messages annually. pcAnywhere will provide as possible in order to save time and money. FTD florists the ability to easily access the FTD Help Desk securely and reliably anytime, anywhere, to receive hands-on technical support. This support allows FTD to provide a greater level of service to its customers and simplify the florists’ experience with the Help Desk while reducing FTD’s support costs. several years, businesses will be investing billions of dollars to build and maintain networks that connect their entire value chain—customers, employees and partners. Anytime, anywhere. Dependable access to Z Z Z Jeff Ly, Senior Programmer/Analyst at TMCC, explains, “The coordinators at our various remote sites must be able to auction off their vehicles at the best price. In order to determine what each best price is, they must know their inventory as well as the condition of the particular vehicle in question. pcAnywhere helps us maintain a reliable link between offices as the coordinators send their data back to our corporate headquarters for statistical analysis. If our coordinators are unable to access or [] send data, whether the problem is due to our custom application 9 10 or to the database containing the information, they can’t make a S Y M A N T E C C O R P O R AT I O N S Y M A N T E C C O R P O R AT I O N sale. It’s that simple.” a a a “With the inclusion of powerhouse applications such as Symantec’s Norton AntiVirus® and pcAnywhere, R Mercury Wings offers a whole new level of big-time capabilities to N even the smallest floral shops.” says Bob Norton, President and CEO D of FTD. “Norton AntiVirus and pcAnywhere add valuable protection 2 and support capabilities to our Mercury Wings users worldwide.” L
  • 8. LANDAMERICA LandAmerica purchased licenses for 7,200 seats each of Norton Ghost,® Norton AntiVirus and Norton Utilities’ SpeedDisk® and 7,000 seats of pcAnywhere. As one of the largest U.S. operated real estate title insurance companies, the multi- product purchase will improve network efficiency, increase competitiveness and capture a bigger piece of the market, stated Bob Kuntz, a LandAmerica Vice President. information, resources, and people empowers global business. Organizations with distributed computing environments require technology solutions that permit consistent availability of applications and data, and Digital information in- frastructure will be so d e p e n da b l e a n d p e rva s i v e it will be ingrained into t h e c o n t e x t o f da i ly l i f e (work and home). [ ]12 11 S Y M A N T E C C O R P O R AT I O N S Y M A N T E C C O R P O R AT I O N w w w LandAmerica, which has more than 600 offices bought Norton Ghost to speed a corporate-wide upgrade from UNIX terminals to Windows NT workstations, and to rapidly deploy LandAmerica’s proprietary title insurance underwriting management software program. pcAnywhere is aimed at improving IS efficiency and reducing costs by remotely fixing PC and server problems in over 40 regional locations. “Symantec was able to offer solutions that met our needs and was the only vendor able to offer everything we needed,” said Kuntz.
  • 9. ORACLE z Oracle, the world’s second largest software company and the leading supplier of software for enterprise information management, renewed a 29,000 seat license for Norton AntiVirus and purchased licenses for 29,000 Norton Ghost, 20,000 Norton 2000® and 29,000 pcAnywhere. The single engine architecture in Norton AntiVirus was a key factor in the renewal of Oracle’s anti-virus license. All Norton AntiVirus engines come from a single code-base so that modifications or updates to the engine, in response to new viruses, can be applied across multiple platforms in a single, cost- efficient deployment as part of the LiveUpdate® process to install new virus definitions. facilitate the user’s ability to achieve more in less time. As transactions increase, companies will integrate a greater numbe r of parts into the networked whole, while controlling the costs of proliferating technology. % IBM GLOBAL SERVICES a a a “Symantec’s family of corporate software solutions offers best-of-breed technology and is backed up by high levels of customer service and technical support,” said Gary Roberts, Jose Medeiros, NT Systems Administrator, is a fan Vice President, Americas IT for Oracle Corporation. of Norton Utilities® for NT and Norton Utilities’ “We have been a Norton AntiVirus customer since System Doctor, which he finds helpful for [ ]14 1994 and have been impressed not only by the way 13 monitoring network traffic. the technology protects our network from virus ( ( ( “We have a T1 line that S Y M A N T E C C O R P O R AT I O N S Y M A N T E C C O R P O R AT I O N infection, but also because Symantec has developed gets clogged right after lunch because so many Norton AntiVirus to be easy and cost-effective people are coming back and getting on the Web. to deploy and manage.” After 5:00, the performance increases, as bandwidth becomes available. I set up the System Doctor to monitor traffic—when it slows below standard, it alerts me that something is in trouble. If I am not getting any connectivity, I know we have a problem with a router, or the T1 line is down, etc.”
  • 10. h 3M 3M is a diversified manufacturing company with operations in more than 60 countries and employs more than 71,000 people worldwide. The company currently uses nearly all languages of Norton AntiVirus — including Spanish, French, German, Portuguese, Korean, Chinese, and Japanese — to protect its approximately 44,000 workstations around the world. A key factor in winning the 3M evaluation process was Symantec’s reputation for quality customer service worldwide, which includes around-the- clock backing by the Symantec AntiVirus Research Center ™ (SARC). In order to stay ahead of the accelerating proliferation of new computer viruses, SARC offers customer support through fully staffed research centers in the Americas, Europe, and Asia Pacific. As Symantec extends its reach with broader enterprise solutions, we’ll ensure our competitive place in the connected world by continuing to foster strategic partnerships with industry leaders and aggressively w w w “As viruses become more sophisticated and prevalent, it is critical that corporations protect not only their workstations, but their file, print, and email servers, firewalls, and Internet email gateways,” said Dave Ostby, IT LAN Services Analyst at 3M. “Having seen the level of protection our 44,000 workstations across the globe receive with Norton AntiVirus, we are confident that installing Norton AntiVirus throughout 3M will greatly reduce the risk of virus infection from any source.” [ ]16 15 S Y M A N T E C C O R P O R AT I O N S Y M A N T E C C O R P O R AT I O N
  • 11. CATERPILLAR . Caterpillar, the world’s largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines, selected Symantec as their anti-virus protection solution for its worldwide desktop network. Caterpillar is a Fortune 500 company with representation in every major market in the world. With the deployment of Norton AntiVirus the corporate network is secure and free of viruses. pursuing under-penetrated global markets. Our software will be essential to our customers’ ability to manage the increasing complexity of their connected environments. Efficiently, and more cost-effectively. [ ]18 17 S Y M A N T E C C O R P O R AT I O N S Y M A N T E C C O R P O R AT I O N
  • 12. C D ORPORATE IRECTORY BOARD DIRECTORS Oƒ Robert R. B. Dykes Tania Amochaev L Senior Vice President, Chairman of the Executive Committee, H&R BLOCK INC. Finance & Administration, QRS Corporation Flextronics International LTD Charles M. Boesenberg Robert S. Miller President & CEO, Integrated Systems Chairman of the Board, H&R Block served more than 18 million taxpayers Waste Management, Inc. (Retired ) Walter W. Bregman in nearly 10,000 offices in the United States, Canada Chairman & Co-Chief Executive Officer, and Australia in 1998. It handled approximately one John W. Thompson S&B Enterprises in every seven returns and 51 percent of all electronic Chairman, President & returns filed with the Internal Revenue Service last Chief Executive Officer, Carl D. Carman tax season. Symantec Corporation General Partner, Hill, Carman Ventures The networked marketplace demands the vital software and services we provide, and we are intent upon leveraging our unique technologies across both old and new customer segments. We have the products, people, Z Z Z Because we must generate most of our C O R P O R AT E O F F I C E R S fiscal year revenue in just the first 105 days of the year, downtime & KEY EMPLOYEES during that period directly impacts our bottom line, said Jim Rose, Chief Information Officer for H&R Block. After searching for an anti-virus solution to protect the 100,000 computers we use to prepare John W. Thompson Enrique T. Salem Gregory Myers tax returns and carefully evaluating several competitors products, Chairman, President & Chief Technology Officer Vice President, Finance & we determined that the protection offered by Norton AntiVirus, Chief Executive Officer Vice President, Security & Assistance Chief Financial Officer Norton Utilities and pcAnywhere was the best buy for our money. Business Unit [ ]20 19 Christopher Calisi Akihiko Narita Vice President, Remote Productivity Solutions Garry Sexton Managing Director & President, Japan S Y M A N T E C C O R P O R AT I O N S Y M A N T E C C O R P O R AT I O N Business Unit Vice President, Asia Pacific Rebecca Ranninger Thomas M. Darnall Dana E. Siebert Vice President, Human Resources Vice President, Corporate Services Executive Vice President, Worldwide Sales, Marketing & Services Keith Robinson Dieter Giesbrecht Vice President, Americas Vice President, Europe, Middle East & Africa Derek P. Witte Vice President, Worldwide Operations Mansour Safai Vice President & General Manager, Arthur Courville Internet Tools Vice President & General Counsel Business Unit
  • 13. CORPORATE HEADQUARTERS INVESTOR RELATIONS OUTSIDE COUNSEL Symantec Corporation A copy of the Company’s Form 10-K Fenwick & West 20300 Stevens Creek Boulevard, Suite 200 for the fiscal year ended April 2nd, 1999 Two Palo Alto Square Cupertino, California 95014 as filed with the Securities and Exchange Palo Alto, California 94306 (408) 253-9600 Commission is available upon request INDEPENDENT AUDITORS without charge. TRANSFER AGENT Ernst & Young LLP Please contact the Investor Relations Boston Equiserve LP 55 Almaden Boulevard Hotline at (800) 883-4497. Additional P. O. Box 1666 San Jose, California 95113 investment-oriented questions may be Boston, Massachusetts 02105-1666 directed to: ANNUAL MEETING Shelley Wilson The annual meeting of Stockholders Investor Relations will be held September 15, 1999, Symantec Corporation at Symantec Corporate Worldwide 20300 Stevens Creek Boulevard, Suite 200 Headquarters, Cupertino, California. Cupertino, California 95014 (408) 446-8990 and the passion to deliver. The company that is positioned to help businesses and individuals capitalize on all the opportunities of a connected world is CORPORATE PROFILE Founded in 1982, Symantec Corporation provides software spanning North America, Europe, Japan, and several fast- solutions that keep customers network interactions safe and growing markets throughout Asia Pacific and Latin America. secure and their computing processes simple. These solutions The Company s stock is traded on Nasdaq under the [ 21 help reduce the cost of maintaining and supporting the growing symbol SYMC. Information on the Company and its prod- number of devices that operate in today s connected world. ucts can be obtained by calling (800) 441-7234 toll free or S Y M A N T E C C O R P O R AT I O N Symantec is based in Cupertino, California, and employs (541) 334-6054, or accessed on the World Wide Web at more than 2,400 people around the world, with operations www.symantec.com. SYMANTEC AND THE SYMANTEC LOGO ARE U.S. REGISTERED TRADEMARKS OF S Y M A N T E C C O R P O R A T I O N . M I C R O S O F T, W I N D O W S , W I N D O W S N T, A N D T H E W I N D O W S L O G O A R E R E G I S T E R E D T R A D E M A R K S O F M I C R O S O F T C O R P O R AT I O N . OTHER B R A N D S A N D P RO D U C T S A R E T R A D E M A R K S O F T H E I R R E S P E C T I V E H O L D E R /S. © 1 9 9 9 S Y M A N T E C C O R P O R AT I O N . A L L R I G H T S R E S E RV E D . P R I N T E D I N T H E U . S . A . PR I N T E D O N R E C Y C L E D PA P E R . 7/99 1960-AR-99 09-71-00337 DESIGN: COOKSHERMAN /SF WRITING: STEVEN GOLDSTEIN PHOTOGRAPHY: HENRIK KAM; MEL CURTIS PRINTING: PRINTING BY DESIGN
  • 14. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K (Mark One) ü Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Fiscal Year Ended April 2, 1999. OR Transition Report Pur suant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Transition Period from ______ to ______. Commission File Number 0-17781 X X SYMANTEC CORPORATION (Exact name of registrant as specified in its charter) Delaware 77-0181864 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 10201 Torre Avenue, Cupertino, California 95014-2132 (Address of principal executive offices) (zip code) Registrant’s telephone number, including area code: (408) 253-9600 X X Securities registered pursuant to Section 12(b) of the Act: None None (Title of each class) (Name of each exchange on which registered) Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.01 per share, and Related Stock Purchase Rights (Title of class) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ü YES NO Indicate by check mark if disclosure of delinquent filer pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ] Aggregate market value of the voting stock held by non-affiliates of the registrant, based upon the closing sale price of the Symantec common stock on June 15, 1999 as reported on the Nasdaq National Market and with respect to the Delrina exchangeable stock on the Toronto Stock Exchange: $1,391,941,376 Number of shares outstanding of each of the registrant’s classes of common stock, including 1,659,684 shares of Delrina exchangeable stock, as of June 15, 1999: 56,098,393 DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive Proxy Statement to be delivered to stockholders in connection with the Annual Meeting of Stockholders to be held September 15, 1999 are incorporated by reference into Part III.
  • 15. SYMANTEC CORPORATION FORM 10-K For the Fiscal Year Ended April 2, 1999 Table of Contents PART I. Page Item 1. Business ............................................................................................................................ 2 Item 2. Properties .......................................................................................................................... 11 Item 3. Legal Proceedings............................................................................................................. 11 Item 4. Submission of Matters to a Vote of Security Holders ....................................................... 12 PART II. Item 5. Market for Registrant’s Common Equity and Related Stockholder Matters ..................... 13 Item 6. Selected Financial Data..................................................................................................... 14 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations..................................................................................................................... 15 Item 7A. Quantitative and Qualitative Disclosures about Market Risk............................................ 33 Item 8. Financial Statements and Supplementary Data ................................................................. 35 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ......................................................................................................................... 35 PART III. Item 10. Directors and Executive Officers of the Registrant........................................................... 36 Item 11. Executive Compensation................................................................................................... 38 Item 12. Security Ownership of Certain Beneficial Owners and Management ............................... 38 Item 13. Certain Relationships and Related Transactions ............................................................... 38 PART IV. Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K ................................. 38 Signatures ........................................................................................................................................... 77 “Symantec,” “we,” “us,” and “our” refer to Symantec Corporation and all of its subsidiaries. This document contains references to trademarks and trade names of other companies. 1