DEAR FELLOW STOCKHOLDERS,
Symantec ended fiscal 2011 on a strong note, as demonstrated by our solid performance against our key financial metrics. I am proud of our team’s execution and our accomplishments over the past few quarters. We have a unique and differentiated portfolio that spans from the endpoint to the data center, supporting both virtual and physical environments. We work with individual consumers all the way to the largest organizations in the world. In addition to providing customers with traditional software solutions, we have expanded our Software-as-a-Service (“SaaS”) and appliance based offerings, giving customers choice on how our solutions are delivered and deployed.
Today we are the leader in helping enterprises and consumers secure and manage their information and identities. IT trends in virtualization, cloud computing, and mobility are changing the way organizations are doing business. By providing solutions that enable the adoption of these key technology trends, we will carry that leadership into tomorrow.
Hard work and disciplined planning enabled us to deliver solid results during fiscal year 2011. Our consumer business grew each quarter driven by our ability to attract and retain more customers through our online store, the customer appeal of our new services offerings, and the strength of our award winning products. In our enterprise business, we generated growth across our portfolio driven by demand for our backup, SaaS, and data loss prevention (“DLP”) products. We have taken great strides in effectively integrating the VeriSign security business as well as the PGP and GuardianEdge acquisitions into the Symantec portfolio. Our salesforce and distribution partners are successfully cross-selling these acquired technologies into our customer installed base.
During fiscal 2011, GAAP revenue totaled $6.19 billion and grew 4% in constant currency terms from the previous year. Non-GAAP1 earnings per share were $1.42, down 5% year over year as reported. Excluding the purchase accounting related deferred revenue write down of $165 million from our acquisitions of VeriSign’s security business, PGP, and GuardianEdge, non-GAAP earnings per share would have been $0.16 higher, totaling $1.58, up 6% year over year as reported.
As a result of our strong bookings performance during the second half of the year, we closed the year with a record $3.82 billion in GAAP deferred revenue, up 16% year-over-year in constant currency, and generated $1.8 billion of cash flow from operations, up 6% year over year as reported. Furthermore, we continued to demonstrate our commitment to increasing shareholder value by repurchasing 57 million shares of our stock for $870 million. Our board authorized a new $1 billion share repurchase program and we exited the first quarter of fiscal 2012 with $679 million remaining in the program.
SYMANTEC’S VISION AND STRATEGY
We envision a world that is secure and well managed. The future is not about devices or applications; it is about people and their information. At Symantec, we believe people should work and play freely in a connected world.
Our strategy is to be the company people choose to secure and manage their information and identities. Symantec focuses on what matters most — information. We are delivering a differentiated, customer-centric experience so that people have private, secure, and simple access to information — anywhere and anytime. We help individuals, small and medium-sized businesses (“SMB”), and global organizations ensure that their information, technology infrastructures, and related processes are 1
Non-GAAP results are reconciled to GAAP on page 5
protected and easily managed. We deliver solutions that allow customers to access information when they need it and make it available to all of those who should have access to it. FISCAL 2011 ACCOMPLISHMENTS
The current toxic threat environment...