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SYMC » Topics » Increased reliance on sales of enterprise licenses may result in greater fluctuations in, or otherwise adversely affect, our financial results.This excerpt taken from the SYMC 10-Q filed Feb 4, 2005. Increased reliance on sales of enterprise
licenses may result in greater fluctuations in, or otherwise
adversely affect, our financial
results. Sales of enterprise licenses
through our Enterprise Security segment represent a major
portion of our business. Enterprise licensing arrangements
involve a longer sales cycle than sales through other
distribution channels, require greater investment of resources
in establishing the enterprise relationship, may involve greater
pricing pressure and sometimes result in lower operating
margins. In addition, the timing of the execution of volume
licenses, or their non-renewal by large customers, could cause
our results of operations to vary significantly from quarter to
quarter and could have a material adverse impact on our results
of operations. In addition, longer license periods impede our
ability to increase prices due to increased costs and may
adversely impact our operating margins.
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