849399--5/24/2007--SYMANTEC

related topics

{system, service, information}

{acquisition, growth, future}

{product, market, service}

{property, intellectual, protect}

{tax, income, asset}

{stock, price, operating}

{financial, litigation, operation}

{personnel, key, retain}

{competitive, industry, competition}

{regulation, change, law}

{stock, price, share}

Fluctuations in demand for our products and services are driven by many factors, and a decrease in demand for our products could adversely affect our financial results. We operate in a highly competitive environment, and our competitors may gain market share in the markets for our products that could adversely affect our business and cause our revenues to decline. If we fail to manage our sales and distribution channels effectively or if our partners choose not to market and sell our products to their customers, our operating results could be adversely affected. We have grown, and may continue to grow, through acquisitions that give rise to risks and challenges that could adversely affect our future financial results. We have not historically maintained substantial levels of indebtedness, and our financial condition and results of operations could be adversely affected if we do not effectively manage our liabilities. Our international operations involve risks that could increase our expenses, adversely affect our operating results, and require increased time and attention of our management. Our products are complex and operate in a wide variety of computer configurations, which could result in errors or product failures. If we are unable to attract and retain qualified employees, lose key personnel, fail to integrate replacement personnel successfully, or fail to manage our employee base effectively, we may be unable to develop new and enhanced products and services, effectively manage or expand our business, or increase our revenues. We are a party to several class action lawsuits, which could require significant management time and attention and result in significant legal expenses, and which could, if not determined favorably, negatively impact our business, financial condition, results of operations, and cash flows. Third parties claiming that we infringe their proprietary rights could cause us to incur significant legal expenses and prevent us from selling our products. If we do not protect our proprietary information and prevent third parties from making unauthorized use of our products and technology, our financial results could be harmed. Some of our products contain open source software, and any failure to comply with the terms of one or more of these open source licenses could negatively affect our business. Our software products and website may be subject to intentional disruption that could adversely impact our reputation and future sales. Increased customer demands on our technical support services may adversely affect our relationships with our customers and our financial results. Accounting charges may cause fluctuations in our quarterly financial results. Our effective tax rate may increase, which could increase our income tax expense and reduce our net income. Fluctuations in our quarterly financial results have affected the price of our common stock in the past and could affect our stock price in the future. Our stock price may be volatile in the future, and you could lose the value of your investment.

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849399--5/24/2007--SYMANTEC_CORP