Gen Digital Inc. · NASDAQ:GEN
Gen Digital — Symantec — Merger or Acquisition (January 2007)
27 slides from Gen Digital's merger presentation, Jan 29, 2007
Slide 1: Symantec To Acquire Altiris
Symantec To Acquire Altiris
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements regarding the financial and business results of Symantec and Altiris, including statements of expectations regarding consummation of the merger, projected growth for computing devices, benefits to Symantec from combinin
Slide 3: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Symantec and Altiris report non-GAAP financial results. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the c
Slide 4: Strategic Rationale
Strategic Rationale Leverages core competitive strengths The most secure endpoint is a well-managed endpoint A shared focus on the endpoint (desktops, laptops, servers, converged devices) Complementary channels Targets same IT buyer Strengthens SME presence Respective OEM partnerships with HP and De
Slide 5: The Most Secure Endpoint Is A Well-Managed Endpoint
Endpoint Security and Compliance Endpoint Management The Most Secure Endpoint Is A Well-Managed Endpoint
Slide 6: Why Is The Endpoint Important To Symantec?
Why Is The Endpoint Important To Symantec? Protecting Infrastructure Protecting Information Protecting Interactions The endpoint is a critical component of IT infrastructure; virtualization and mobile device growth will increase endpoint proliferation The endpoint is a main point of vulnerability an
Slide 7: Number Of Endpoints Are Proliferating
Number Of Endpoints Are Proliferating 15 10 5 300 200 100 Desktops Laptops Servers Mobile Devices In millions In millions In millions CAGR = 9.9% CAGR = 11.5% CAGR = 29.1% 300 200 100 400 Source: IDC, Worldwide Virtual Machine Software 2006-2010 Forecast, September 2006, Doc #203213, IDC, Worldwide
Slide 8: Symantec and Altiris: A Total Endpoint Solution
Symantec and Altiris: A Total Endpoint Solution Best-in-class endpoint management suite Leverages core competitive strengths of Symantec (security and compliance) and Altiris (discover, remediate and manage) Limited direct competition from centralized systems vendors Identify Analyze threats Identif
Slide 9: Real World Example: A New Threat Is Discovered
Protect Repair Enforce Identify Real World Example: A New Threat Is Discovered Identify Analyze threats Identify exposure Prioritize risks Vulnerable endpoints identified Symantec DeepSight provides visibility Altiris CMDB identifies exposure Potential configuration conflicts analyzed Vulnerable end
Slide 10: The Threat Is Contained
The Threat Is Contained Protect Repair Enforce Identify Protect Update signatures Issues patches Block attacks Signatures and patches delivered Symantec signatures updated Patches applied via Altiris infrastructure Ongoing protection from multiple attack vectors
Slide 11: Endpoint Is Immunized
Endpoint Is Immunized Protect Repair Enforce Identify Repair Disinfect Deploy updates Backup / recover Disinfection and software updates Symantec Client Security "disinfects" endpoints Altiris delivers critical updates Virtualization simplifies deployment CMDB updated
Slide 12: Policy Enforcement Keeps The Network Safe
Policy Enforcement Keeps The Network Safe Protect Repair Enforce Identify Enforce Scan endpoints Quarantine endpoints Track compliance New policy is enforced Symantec Control Compliance Suite and Symantec endpoint compliance technology Altiris Task Manager asset and workflow management Vulnerable ma
Slide 13: Securing and Managing the Endpoint
Procurement Deployment Production Retirement Asset Discovery License Management Deployment / Configuration Packaging And QA Software Distribution Security and Compliance Patch Management Backup / Recovery Asset Tracking Problem Resolution Migration Software Updates Strong Product Fit Altiris Workflo
Slide 14: Distribution Synergies
Distribution Synergies Targets same IT buyers Security and IT administration functions are converging Strengthens Symantec's SME focus Complementary channel strengths Additional products through the Symantec channel worldwide Synergistic OEM relationships Additional account penetration through direc
Slide 15: Capitalizes On Future Technology Trends
Capitalizes On Future Technology Trends Virtual desktop environments Virtual systems proliferation Altiris enables management of virtual desktops Altiris' SVS revolutionizes desktop application management Virtualized applications streamline operations and reduce support costs Mobile endpoints Mobile
Slide 16: The Endpoint is the New Perimeter
The Endpoint is the New Perimeter Common CMDB and Management Infrastructure Data Center Endpoints Mobile Laptops Thick Client Desktops Virtual Desktops Mobile Devices Applications Data and Storage Pervasive Network
Slide 17: Trailing Twelve Month Income Statement
Trailing Twelve Month Income Statement(a) (a) Symantec trailing twelve month results (TTM) ended December 31, 2006. Altiris TTM results ended September 30, 2006. (*) These are non-GAAP results. Both companies provide GAAP as well as non-GAAP results. Please see the appendix for GAAP to non-GAAP reco
Slide 18: Identified Cost Savings
Identified Cost Savings G&A cost savings Public company costs Facilities consolidation Duplicative systems R&D cost savings Rationalize product offerings Common development efforts Distribution synergies Leverage Symantec's global presence
Slide 19: Balance Sheet
Balance Sheet(a) Symantec results are as of December 31, 2006. Altiris results are as of September 30, 2006. (*) These are non-GAAP results. Symantec provides GAAP as well as non-GAAP results. Please see the appendix for GAAP to non-GAAP reconciliation of deferred revenue. Cash and Short-Term Invest
Slide 20: Trailing Twelve Month Cash Flow Statement
Trailing Twelve Month Cash Flow Statement(a) (a) Symantec trailing twelve month results (TTM) ended September 30, 2006. Altiris TTM results ended September 30, 2006. Depreciation & Amortization $775 M $15 M Stock Compensation $105 M $10 M Cash Flow From Operations $1,621 M $31 M Capital Expenditures
Slide 21: Summary
Summary The most secure endpoint is a well-managed endpoint Symantec and Altiris leverage respective competitive strengths Symantec: endpoint security, compliance and backup Altiris: endpoint management and remediation Combined, we create the most comprehensive endpoint suite available Complementary
Slide 22: Appendix
Appendix
Slide 23: Symantec Statement of Operations Reconciliation
Symantec Statement of Operations Reconciliation NET REVENUES: NET REVENUES: Twelve Months Ended 12/31/06 (In thousands) (Unaudited) GAAP net revenues $5,072,759 Fair value adjustment to Veritas deferred revenue (A) 107,043 Non-GAAP net revenues $5,179,802 GROSS PROFIT: GROSS PROFIT: GAAP gross profi
Slide 24: Symantec Statement of Operations Reconciliation Footnotes
Symantec Statement of Operations Reconciliation Footnotes The non-GAAP financial measures included in the table above are non-GAAP net revenue, non-GAAP net income and non-GAAP net income per share, which adjust for the following items: business combination accounting entries, expenses related to ac
Slide 25: Symantec Deferred Revenue Reconciliation
Symantec Deferred Revenue Reconciliation DEFERRED REVENUE: DEFERRED REVENUE: December 31, 2006 (In thousands) (Unaudited) GAAP Deferred Revenue GAAP Deferred Revenue $ 2,462,522 Add back: Add back: Fair value adjustment to Veritas deferred revenue (*) 25,448 Non-GAAP Deferred Revenue (**) Non-GAAP D
Slide 26: Altiris Statement of Operations Reconciliation
Altiris Statement of Operations Reconciliation Twelve Months Ended 9/30/06 (In thousands) (Unaudited) Revenue Revenue 214,595 Gross Profit Gross Profit 170,128 GAAP Operating Income GAAP Operating Income 11,213 Add back: Add back: Amortization of acquired core technology 7,301 Amortization of intang
Slide 27: Additional Information and Where You Can Find It
Additional Information and Where You Can Find It Altiris intends to file with the Securities and Exchange Commission preliminary and definitive proxy statements and other relevant materials in connection with the transaction. The proxy statement will be mailed to the stockholders of Altiris. Before