Good day, and welcome to Symantec's Third Quarter 2012 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the conference over to Ms. Helyn Corcos, Vice President of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining our call to discuss fiscal third quarter 2012 financial results. With me today are Enrique Salem, Symantec's President and CEO; and James Beer, Symantec's Executive Vice President and CFO. In a moment, I will turn the call over to Enrique. He will discuss Symantec's execution during the quarter, then James will provide highlights of our financial result as well as discuss our guidance assumptions as outlined in the press release. This will be followed by a question-and-answer session. Today's call is being recorded and will be available for replay on Symantec's Investor Relations website. A copy of today's press release and supplemental financial information are posted on the website, and a copy of today's prepared remarks will be available on the website shortly after the call is completed. Before we begin, I'd like to remind you that we will review our financial results focusing on year-over-year constant currency growth rates unless otherwise stated. Net income, EPS and sequential growth rates are based on as reported results. For the December 2011 quarter, the actual weighted average exchange rate was $1.35 per euro and the end-of-period rate was $1.30 per euro compared to our guided rate of $1.37 per euro. For the December 2010 quarter, the actual weighted average rate was $1.35 per euro and the end-of-period rate was $1.33 per euro. We've included a summary of the year-over-year constant currency and actual growth rates in our press release table and in our supplemental information, which can be accessed on the website. Some of the information discussed on this call, including our projections regarding revenue, operating results, deferred revenue, cash flow from operations, amortization of acquisition-related intangibles and stock-based compensation for the coming quarter contain forward-looking statements. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in those statements. Additional information concerning these risks and uncertainties can be found in the company's most recent periodic reports filed with the U.S. Securities and Exchange Commission. Symantec assumes no obligation to update any forward-looking statements. In addition to reporting financial results in accordance with Generally Accepted Accounting Principles, or GAAP, Symantec reports non-GAAP financial results. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP results, which can be found in the press release and on our website. And now I'd like to introduce our CEO, Mr. Enrique Salem.

Thank you, Helyn, and good afternoon, everyone. I'm pleased with the team's execution of our information-centric vision. In addition, our strategy to secure and manage information and identities on any device or platform is resonating well with enterprises and consumers globally. We continue to gain traction with our long-term growth initiatives in the areas of cloud, computing, mobile and virtualization. In the December 2011 quarter, we continued to build momentum as we delivered our sixth consecutive quarter of consistent execution. We generated better-than-expected revenue, earnings and deferred revenue results on a constant-currency basis. Our performance was driven by market share gains in Backup and strength in Enterprise Security, including DLP, Managed Security Services and Authentication. Now let's take a closer look at some of the highlights from the quarter. Following on the strength of last year's December quarter results, our focused sales execution coupled with robust demand for our industry-leading products drove strong performance across all products and regions. We continue to cross-sell the product portfolio with 41% of our December quarter deals over $1 million, including sales from both of our Enterprise product segments, up from 38% in the year ago period. Our Backup business continues to gain market share. Growth in this business was driven by our unique ability to provide integrated deduplication, backup and virtualization solutions in a variety of form factors. Our investments to create industry-leading appliances are paying off as our Appliance business continues to exceed our expectations. We have signed several large transactions with our NetBackup 5220 appliance, displacing established competitors. Our embedded V-Ray technology continues to differentiate us from the competition. Leading organizations such as FedEx and NBC Universal use NetBackup with V-Ray because of its ability to provide load-balanced, indexed and easily recoverable backups in both physical and virtual environments. To further…

Thank you, Enrique, and good afternoon. Our results were driven by growth across each of our primary business segments. Continued consistent execution drove record December quarter revenue and deferred revenue as well as double-digit earnings per share growth. GAAP revenue totaled $1.715 billion, an increase of 6% versus the December 2010 quarter. The U.S. dollar weakened by approximately 1% against the euro as compared to the year ago period. Overall, foreign currency movements positively impacted revenue growth by one percentage point, driving a reported revenue growth rate of 7%. At our guided rate of $1.37 per euro, revenue would have totaled approximately $1.721 billion, above our guided range. Year-to-date, revenue has grown 8% year-over-year. December quarter license revenue declined 1% year-over-year, while content subscription and maintenance revenue grew 8% year-over-year. Year-to-date, license revenue is up 2% and maintenance revenue is up 9% year-over-year. Subscription sales, which are made up of our consumer, authentication and cloud services businesses, accounted for 39% of total revenue, up from 37% in the year ago period. In total, subscription revenue grew 13% year-over-year. Our subscription offerings represent an increasingly significant portion of our new business growth but are not included in our license revenue line. Continued subscription growth, combined with strong maintenance renewals, increased the proportion of December quarter revenue that came off the balance sheet to 70%, up from 67% in the year ago quarter. Non-GAAP net income of $314 million grew 15% and resulted in fully diluted non-GAAP earnings per share of $0.42, up 20% from the December 2010 period. Year-to-date, EPS has grown 16% year-over-year. The Consumer business generated December quarter revenue of $525 million, up 5% year-over-year, and benefited from our continued success in selling new products and services to consumers. These new offerings grew 78% year-over-year and accounted for 2…

Thank you, James. Gwen, will you please begin polling for questions?

[Operator Instructions]

While the operator is polling for questions, I'd like to update you on a few upcoming events. We will be presenting at the Stifel Conference on February 7 and at the Morgan Stanley Conference on February 29. We will be reporting our fiscal fourth quarter results on May 2. In addition, please save the date for our Vision User Conference on May 8 and 9 in Las Vegas and our Financial Analysts Day on May 24 in San Francisco. More information regarding registration for these events will be distributed later in the quarter. For a complete list of all of our investor-related events, please visit our Events calendar on the IR website. Gwen, we're ready for our first question.

We'll take our first question from Brad Zelnick with Macquarie.

Enrique, your strong large-deal metrics would suggest Symantec is becoming increasingly strategic to customers. And as we enter a new calendar year, I'd imagine you have close discussions with CIOs at some of the world's largest organizations. So I'm hoping, can you comment on how you think budgets for security and storage are shaping up in 2012?

When you look at the underlying trends that drive that demand, storage continues to grow at a very rapid rate. This morning, we started to do some of the work around our NetBackup and Backup Exec launch. And in some of the comments that I made this morning, Brad, we talked about growth in storage being forecast for this year close to 50%, I think I said about 48% for the year. And when you look at that growth in storage, there continues to be demand for our solutions that help customers deduplicate, better manage that whole backup environment. When you look at the current demand for our backup appliances, that continues to be robust, given that growth in information. On the other side, some of the comments I made around the strength in DLP, Managed Security Services, it's clear that people need help thinking about how do they protect their information. So even as we look at all the different news about the economy and unemployment rates and so forth, there continues to be good demand for the range of our portfolio. And my expectation is that, given what I'm seeing, is that we'll continue into this year.

And, Enrique, just diving into Europe. Flat this quarter, down from growing 2% last quarter. And I think last quarter you had said that you had achieved your internal plan, and I took that to mean on a bookings basis. I know Mediterranean regions were weak last quarter, but can you maybe just give us more insight to what's happening in the region and maybe even from a bookings perspective what you're seeing there?

Absolutely. So we saw strong bookings across all 5 regions in Europe. We did see a little bit of weakness in a couple of Mediterranean countries. But in general, across all of the regions, bookings were strong. I was actually, to be honest, pleasantly surprised with the strength that we saw across Europe on a bookings basis.

And we'll go next to Aaron Schwartz with Jefferies. Aaron Schwartz - Jefferies & Company, Inc., Research Division: Enrique, you've talked about a number of Enterprise product releases that are starting to ripen here. As you think about those moving into your fiscal '13, how do you think about the balance between the license and the subscription growth? Do you expect that sort of balance to change at all as you focus on some new product cycles?

What you see happening in our business is that we're starting to get a lot more of our .cloud businesses growing at a faster rate than our on-premise offering. So when you look at .cloud, our VeriSign business, we definitely -- our MSS business, we continue to see real good growth in the subscription side of the business. Now with the new releases, of course, that will drive some new license growth. But my expectation as we look forward in this business is that subscriptions are actually going to grow faster than licenses, just given the mix and the move in the marketplace. Aaron Schwartz - Jefferies & Company, Inc., Research Division: Okay. And if I could just sneak a quick follow-up here, probably for James. But it looks like that the currency is going to have about a $35 million headwind here in the March quarter if I did my math right. Do you have an equivalent impact to the earnings side?

In terms of EPS, I would expect that we'd be seeing a headwind somewhere of the order of $0.02 to $0.03, in that trajectory.

And we'll go next John DiFucci with JPMorgan. John S. DiFucci - JP Morgan Chase & Co, Research Division: Enrique, it looks like the Corporate Security business was really strong this quarter, but when I look -- I'm going to follow up to Brad's question on the storage. Because when you back out sort of the Clearwell stuff, it looks like storage was flattish again. And we saw some discontinuity from that business for several quarters, and then we saw some meaningful -- some strength for a couple of quarters, and in the last few, it's just sort of been flattish again, even with what you talk about sounds like a pretty exciting market. So if you help explain that and help to explain why we shouldn't be seeing a little bit more growth out of that on an organic basis.

When you look at the Core Storage Management business, what we saw in the quarter was strong bookings performance. And as you know, that takes time to roll into the P&L, into revenue. And so my expectation is that we are continuing to see improvements over the last 3 or 4 quarters in that business. I look at what's happening on the non-Solaris platforms. For example, on Red Hat and Linux, we definitely are seeing good demand for our products, and we're working very closely with both Red Hat and with VMware on how do we continue to extend the Storage Management business onto those platforms to increase our overall penetration. And I see that is a trend that's going to continue as we look forward. John S. DiFucci - JP Morgan Chase & Co, Research Division: So is it the Solaris business? I mean, because for a while there, it looks like Oracle was spending a lot more time and probably money on marketing their high-end Storage business or the Sun high-end Storage business. But it looked like maybe it was helping a little bit, but is that sort of falling a little bit by the wayside at this point?

What you see happening in the Solaris business is it's becoming a smaller percentage of our total business as the other platforms continue to grow. The moves towards the non-Solaris platforms is definitely, as a total percentage, just increasing every quarter for probably the last 8 quarters, if not longer, and I expect that trend to continue. And we've got a number of initiatives that should continue to accelerate that trend. So it's more that the percentage or mix of our business is changing away from Solaris. And definitely, this -- Solaris is not a growth platform for us. John S. DiFucci - JP Morgan Chase & Co, Research Division: And I'm sorry, just one quick follow-up, because you said the bookings were strong, and that's good to hear. And, yes, we understand that oftentimes it's recognized ratably, but that's usually the maintenance. Is there something else going on, too, where you're just selling capacity deals and you're recognizing that over time versus like a licensed component upfront?

No, nothing changing in terms of the types of deal constructs that we're entering into around storage management.

And we'll go next to Adam Holt with Morgan Stanley.

This is actually Keith Weiss sitting in for Adam Holt. I was wondering if you can talk about margins for a little bit. Maybe start with your gross margin line. It sounds like a lot of the fast-growing growth initiatives are stuff like the Appliance business, the Managed Services business, .cloud, areas that perhaps are at lower gross margins than some of your more traditional businesses. How should we think about that gross margin line on a going-forward basis and as these elements start to really take off within your P&L?

Yes. Well, as I've mentioned in my prepared remarks, in the December quarter, the year-over-year benefit of the gross margin line percentage-wise is being driven by the fact that we have fewer consulting services activities this period, December, versus the year ago period. Now we're starting to get towards lapping that type of an effect. And so that will start to mitigate as a driver of gross margin in the coming quarters. Now going in the other direction, we've talked about the success of our Appliances business. As we continue to ramp up the scale of that business, then that will tend to lower gross margins somewhat. So I think we'll probably be expecting to see a reversal of the gross margin trajectory driven by the success of the appliances.

And what impact will the services businesses have on that? Are those going to be an overall margin drag like the .cloud businesses and the managed services business?

Well, at the operating line, the operating margin line, what we talked about back at Analyst Day now is that, as we continue to grow, scale these higher-growth, currently smaller businesses like MSS, hosted service offerings, then, yes, that will have something of an impact on margins. But obviously, we're very pleased as to the progress we've made in developing those businesses. We see a lot more growth opportunity in them coming down the track in the next few years. And so as we scale them, then their margin contribution will improve.

Got it. And then maybe if I could get one follow-up in just on operating margins, particularly the impact from the consumer margins. You've seen some nice year-on-year improvements in consumer margins. You were talking about on the call earlier how weaker PC shipments had positively impacted or reduced your OEM fees. Going forward as we look into maybe past Q4 and going into the back half of 2012, some people, including ourselves, are expecting Windows 8 to come out. You have the possibility of the PC shipping cycle ramping back up. How should we be thinking about consumer margins and the impact on overall operating margins as we start to look out a quarter or 2 in a potentially better PC shipping environment?

Well, in terms of the December quarter, we saw OEM fees down around $8 million year-over-year, so that's driving about 0.5 point of margin at the operating line. And I would expect directionally that type of an effect in the March quarter. Now beyond that, obviously hard to say exactly how PC unit shipments are going to respond to the various market forces that you're referring to in your question. But that's what we see for the immediate term.

And we'll go next to Walter Pritchard with Citi.

Just wondering, Enrique, if you could talk on the backup side. You have a couple things going on there. You have the new appliances. It's my understanding that your NetBackup business sort of -- or your Backup Exec business sort of runs with server unit shipments, which have been weakening. And you also mentioned share gains in that market, which the overall growth rate in that business wouldn't necessarily point to share gains. I'm wondering if you could just help kind of pick apart the drivers there and help us understand what's the headwind and what's the tailwind for you in that business.

When we look at the opportunity, it absolutely is focused on people rearchitecting how they do data protection. The volumes of data that are out there right now and the growth rate is not allowing people to successfully complete backup of all the critical data in a traditional way. So what they're having to do is drive rearchitecture, which is saying they have to use new technologies, such as deduplication. The second aspect that's driving it is, as they move to more virtualized servers, you're also seeing a need to use updated or new technologies that are more efficient at backing up a virtualized server. So you've got a rearchitecture going on in data protection. The other thing that's happening is, because data and information is so critical in so many different processes, you're also seeing people having the need to keep some of that data more accessible or online using technologies like archiving. And then lastly, because of the legal issues around the discovery process, you're seeing them have to add new techniques and methodologies around the discovery process. And by the way, this is being done now both on-premise and in the cloud. So you look at that, and what you've got is a real rearchitecture of how you think about data protection, Information Management and so forth, so that rearchitecture really creates, in my opinion, a tailwind for us as they think through how do they get ahead of this problem. When you think about the other side of it, obviously, what we do every day is we have to continue to drive innovation. And so a number of the new capabilities that we're delivering into the marketplace with the new Backup launch are that improved support for virtual environments, improved deduplication rates, doing deduplication everywhere, from the client to the data center. And so there's a lot of opportunity for innovation in that market, and so we're continuing to do that. The only thing that I think about is over time, and we've talked about this, is we are going to move to more appliances. Our Appliance business keeps doing very well, and that will put a little bit of pressure on our margins. And so it's just a different cost structure than an enterprise software license. But from a market health, from a competitive perspective on the capabilities that we have, I feel very good about that. And then the only thing, the only headwind that I'm worried about right now is really the -- with the pressure on the margins.

And then just on the PCs, on the consumer side, you mentioned the OEM fees down. Just trying to get a sense, is your new business in the consumer space growing? I understand you guys have always been a great company at driving the installed base to higher-priced products and so forth and selling them services and so forth. But on the new business, is that a growth business right now? Or is the PC headwind just too big of a headwind to make that -- to allow that consumer business to attract more new business?

Yes, I'd say that component of the consumer business is pretty close to the flat line.

Okay, but flat new business is roughly what you're seeing?

Yes, that's right.

And so the benefit that we're seeing, as you touched on it, is because of our ability to better target customers and with our new e-commerce platform and then also adding the new Services set, products like Online Backup, products like Ultimate Help Desk, they are absolutely being used and adopted. And that drove 2 percentage points of growth in consumer in the last quarter. And we -- as I look forward and I look to the next year and the following year, I expect that those new services will continue to drive an increasing percentage of the growth of that business.

And we'll take our next question from Philip Winslow with Crédit Suisse. Philip Winslow - Crédit Suisse AG, Research Division: Enrique, I just want to dig into just the go-to-market side here. Just want to get a sense of how you feel about just a direct sales productivity but also just a word of where you guys stand in terms of just channels, partnerships and if there's anything we should look at going forward to improve that. And then also just along the lines, obviously, there's been a lot of focus on this call just on OEM fees and cost of service. But when you think about driving leverage long term in this model, where should, call it the OpEx as a percentage of revenue come down the most? Is it in sales as productivity improves? R&D? G&A? How should we think about that?

Sure. Let's start with the first part. When we look at the sales force and sales productivity, I'm very pleased with the progress we're making across the Enterprise segments. When I look at the large deal productivity, the metric -- I think James gave 135 deals over $1 million. When I look at the cross-selling, where 41% of the deals include products from both our security business and our Storage and Server Management business, we absolutely are being able to articulate a vision that says to customers the range of our products can help you deal with your information growth and information security problems. And so sales force productivity has continued to improve over the last 3 years. At the last Analyst Day, Bill Robbins talked about some metrics around expense to bookings, expense to billings, and my expectation is that, that metric should continue to improve, not just this year, but again next year. And I expect that to continue the year after that. And so as you know, we've been working over, I would say, probably the last 5 years to continue to improve that metric, and I expect it to continue. So now, coming into your second part of your question, some of the improvements in expansion and margin will come from continued improvements in sales, but I actually believe we'll see improvements across all parts of the business. I think there's improvements in every line of the P&L, and that gives me great confidence that over the next several years, we'll continue to be able to drive margin improvement each year. Obviously, I want to make sure that some of the improvement comes from top line growth, but we're absolutely going to drive better cost management, cost containment, which we've been doing over the last several years, and I expect that to continue.

We'll take our next question from Brent Thill with UBS.

Enrique, the number of deals over $300,000 has accelerated every quarter as a growth rate. And I'm just curious, are you seeing longer-term Enterprise agreements getting signed where, to your point, they're staying in [ph] 41% from both sides? But are you now locking customers up for longer periods and therefore giving you much better revenue visibility going forward as well?

Brent, I haven't seen a change in the length of the contracts that we're signing. I think it stayed pretty consistent over the last several quarters. What you are seeing, as we increase the deals at all of the metrics, we gave $300,000 and $1 million, is you are seeing us be able to bring more of the portfolio into each of those agreements. And my expectation, now that we've brought in technologies like Clearwell and LiveOffice, for example, when we are selling a backup solution or an archiving solution, my expectation is that we'll actually be able to sell a much broader set of capabilities. And so that would put upward pressure on our deal size. Because instead of just buying Archiving, we're going to show you a compelling reason why you should buy our Archiving and our Discovery. And now we've got the market-leading Discovery technology that makes it a easier or a better discussion. And as we further integrate eDiscovery with archiving and backup, I expect that will just make it even better from a large-deal metric perspective.

Enrique, if you could just bring us up to speed on the storage market, just the competitive dynamics you're seeing in some of these new technologies that are coming to market, how that's changing your approach.

Brent, when you think about storage, are you thinking the Storage and Availability Management or the Backup side? How do you...

Storage.

Okay, what we're seeing in Storage is the continued move to virtualization and the continued move to people looking at the Linux platform and moving mission-critical workloads onto the Linux platform. So our expectation is, as we bring some of the new technologies that do high availability on a virtualized environment, like our AppHA, that will continue to gain traction in the marketplace. When they move to non-Solaris platforms, what's happening is they're still relying on us for the robust and the high availability. And so I expect that, that will continue. As far as new technologies, we're at the forefront of file system performance, at the forefront of clustering technologies. We're showing people right now how they can more effectively build their private clouds using our technology. I was just in our Executive briefing center yesterday, and one of the things that's resonating very well with customers is we're saying, "Look, use the existing infrastructure you have, your storage infrastructure, your computing infrastructure more effectively." When you're trying to build that private cloud, what you're really trying to do is get better utilization of all of your IT resources, not just your hardware assets, but also your people assets. And so using our technologies, we're able to show customers how we use the file system and clustering technologies to build out that private cloud in a highly scalable, highly cost-effective way. And so we absolutely believe that we're positioning ourselves well as people try to build out their private cloud infrastructure.

We'll go next to Jonathan Ho with William Blair. Jonathan Ho - William Blair & Company L.L.C., Research Division: Just starting out with the DLP business, can you give us a little bit more color on how that performed this quarter and maybe where you see the opportunity for that to grow as a portion of the business over time?

Yes. What we see is that the DLP business has been a catalyst for building our relationship with the CISOs. If you look at the product portfolio, products like control compliance were also helping us there. But DLP has changed the relationship that we have with the CISO, because that information that they get from their DLP product is being shared broadly with the minds of business leaders so that they understand the risks and the exposure that a business has. So my expectation is that DLP will be used broadly across the enterprise, and it will also start moving below what I would call the Large Enterprise segment into the Enterprise segment and, potentially, the higher end of the mid-market. The other thing that we're doing with DLP this quarter is we're delivering our DLP for tablets, which has been in very high demand because people are using more. I think you saw yesterday in iPad numbers where I think there were 15 million iPads sold in the December quarter, and a number of those iPads end up in the enterprise. And so customers are absolutely looking forward to the ability to use our DLP technology on their tablet devices. As far as the other part of your question, James, do you want to talk about the...

Well, in terms of revenue growth, DLP had another good double-digit year-over-year growth quarter. Jonathan Ho - William Blair & Company L.L.C., Research Division: Fantastic. Just talking a little bit about the Clearwell acquisition and integration efforts with your existing solutions, are you seeing more demand for these suite-based solutions? And is there anybody else out there that can potentially offer something competitive? Or do you think this is a real opportunity for you guys to offer a solution-based approach to really dominate the segment?

What customers tell me all the time is they don't want to be systems integrators. They want Symantec to deliver integrated solutions. And the more we can build the complete offering in data protection, the more interest and demand we get. And that's why we're seeing such good performance from our Appliance business, because customer previously were buying the backup software, they were buying deduplication hardware and they were buying the media server, all separately. What we're able to do with our 5240 appliances is integrate all of that. So then when you extend it to the other components of our data protection suite, our goal is to continue to bring in the other components. We absolutely have differentiated technology date [ph]. Clearwell is the market leader in eDiscovery; LiveOffice, best-in-class, hosted archiving technology; NetBackup, market leader in backup software. We put all that together in one integrated solution, I think you're absolutely right, that should start distancing us from the competition, because no one has the market-leading, best-of-breed technologies in the different areas that I've described. And so I'm very bullish on the prospects for all of our data protection capabilities. And as we further integrate them, I think that business will continue to perform very well for us.

And we'll go next to Robert Breza with RBC Capital Markets.

Enrique, just as you look at the consumer business and obviously the consumer PC shipment numbers that are out there, obviously, it looks like there's another quarter or 2 as we try to rebuild the inventory. Can you talk to us how you see the kind of the next 6 to 9 months performing in the consumer business and how we should think about that trending?

Obviously, we're keeping an eye on what's happening with the supply chain in the PC marketplace, which is just another headwind in the overall PC growth rate. I absolutely don't expect any kind of turnaround in PC shipments until we get through probably to the Windows 8 launch. And what we're always doing, then, is saying how do we continue to build our business so that it's less dependent on the numbers of PC units that are being shipped? And that's been something that's not a new process for Symantec. It's something that we've been working on for some time. And so we continue to add new services. We're reviewing proposals for some of the new capabilities. I commented that we're seeing more and more downloads of our Norton Mobile Security for Android. And so my expectation is that the core PC software side is going to benefit for our ability to cross-sell other components of our portfolio, upsell to the higher price points. But I don't expect that -- as James commented on a previous question, I don't expect to see an uptick in PC units, and so new customer acquisition will be relatively stable. I expect the opportunity to be in these other services as we go beyond the PC. So my expectation is we'll continue to track the consumer business, definitely a headwind in PCs, definitely a headwind on the -- in the -- going beyond the PC and a headwind because of the supply chain. But I think we just need to continue to build our business around some of the other new services that the consumer businesses continue to add.

Maybe as a follow-up for James. James, could you help us out a little bit on the tax rate further out? I know you mentioned for next quarter, 27.5%. I think more or less, the street's a little bit higher from a tax rate perspective as we look out. I mean, do you think that tax rates stay stable around the 27.5%? Or do you think it will be ticking up going forward?

Well, directionally, we think of the tax rate at around 28%, a little bit north of that. And then there are obviously different onetime items that tend to come up each quarter that land us on the published rate along with each quarterly set of results. So I wouldn't expect any change from that sort of 28%, 28.5% type base rate, if you will.

We will go next to Steve Ashley with Robert W. Baird. Chaitanya Yaramada - Robert W. Baird & Co. Incorporated, Research Division: This is Chaitanya Yaramada sitting in for Steve Ashley. So the SEP 12 looks to have been a successful launch. Could you provide some color maybe around the actual revenue or bookings growth during the quarter? And how much of the business is tied to Enterprise? Was this mid and small business? And any color on the uptake? And maybe any difference in the uptake of the product in each of the segments would be helpful.

You're absolutely right on how well SEP is doing. I mean, 3 million people have already installed it. It's the best adoption we've seen. The team, quite frankly, hit the ball out of the park with the quality of this release, and so I couldn't be happier. And the feedback I've reported over the last several quarters initially came from our partners, and now it's coming from customers, where that product is absolutely the best-in-class anti-malware protection product on the market. So our team did a great job there. What we're also seeing, though, is, and I've commented that given the work to integrate McAfee into Intel, we're also seeing opportunity to displace and gain share across segments against McAfee. And so we're feeling very encouraged by that. I don't know that we -- we don't break out the Endpoint Security business revenue, but what I am seeing is very good improvement in that business where it was flat to declining previously. And we're definitely seeing a more stability and growth in that business as a result of the last couple of quarters. And so I expect that to continue, and I'm confident that the new product is really the best product on the market.

Just one other fact in service of the adoption of SEP 12. This time a quarter ago, we had 1.3 million installations. As Enrique says, now we're over 3 million. So it's a fast acceleration rate. Chaitanya Yaramada - Robert W. Baird & Co. Incorporated, Research Division: And any comments on the take-up in the SMB market?

We definitely see opportunity there. As you know, we created a new group focused on this segment. We are driving a number of new initiatives. One of the most encouraging components of that segment is not just the on premise, but the opportunity with our Symantec Endpoint Protection .cloud business where we're seeing it easier for customers to use that product in that segment. And so my expectation is we're going to continue to see improvements over the next several quarters on a bookings basis in the SMB segment. The focus, the product and the flexibility that we offer with .cloud I think is going to bode well for that business.

And we'll go next to Shaul Eyal with Oppenheimer & Co. Shaul Eyal - Oppenheimer & Co. Inc., Research Division: Enrique, sticking on -- you just mentioned McAfee and some market share dynamics. Can you expand a little bit about what's happening on the consumer front. Potentially some new commerce could be making it to the public markets soon. What's happening on that front? Any change?

Shaul, say the last part of your question, any change with the public market... Shaul Eyal - Oppenheimer & Co. Inc., Research Division: With -- kind of with market dynamics on the consumer front.

Yes. I would tell you that what we see is, our core business and the new products, again, this is something we'd -- as we drive the consistency in execution, what we're seeing is better products and better sales execution. And ultimately, I am convinced that our Norton products, the 2012 products, are the absolute best products on the market. So what that does is that starts having a positive effect not only on how do we bring customers in, but also on keeping customers happy. And we look at the metrics from what we call our customer loyalty or Net Promoter Score, and that business continues to lead the pack as far as the best customer loyalty. Now you are seeing the continued move at the lower end of the market to what we call the freemium, from freemium vendors. And they continue to be out there. I would tell you that, as I look at data that we have available, some of those vendors are struggling with some of their monetization models, and I expect that they're going to continue to struggle going forward, because their business model is going to get challenged as they try to upsell to some of the services, because we've got a better market position with better services, and I'm convinced that we'll be able to effectively compete with anybody who is offering a freemium product. As you know, there's probably a couple of them that are going to try to go public, and it will be interesting to see. As they disclose how they're generating revenue, and some of them already have, I think it will become pretty clear that there's going to be some headwinds that they're going to face going forward, and I think we're going to be a driver of some of those headwinds. Shaul Eyal - Oppenheimer & Co. Inc., Research Division: James, quickly on the cash flow, healthy at $403 million, but I think kind of slightly below what the street was expecting. Is that kind of timing -- that's a timing reason?

Yes. Obviously, cash flow tends to be more volatile between one period or another. The last few quarters, we've been comfortably ahead. And so that's just particularly why I reemphasize year-to-date cash flow from operations having grown 10%.

Gwen, that was -- I think that's all the time we have at this point.

Thank you. That concludes our question-and-answer session. I would now like to turn the call back to Enrique Salem for closing remarks.

Well, I'm pleased with our team's execution and solid results for the sixth consecutive quarter. Thank you for joining us this afternoon, and I definitely look forward to speaking with you again soon.

Thank you, everyone. That does conclude today's conference. We thank you for your participation.