Symantec Reports Strong First Quarter Revenue
News Release
FOR IMMEDIATE RELEASE
Symantec Reports Strong First Quarter Revenue and Earnings
Performance driven by demand for core and emerging technology solutions
Symantec Corp. (Nasdaq:
SYMC) today reported the results of its first quarter of
fiscal year 2008, ended June 29, 2007. GAAP revenue for the
quarter was US$1.40 billion and non-GAAP revenue was $1.42
billion. Non-GAAP revenue grew 10 percent over the
comparable period a year ago.
GAAP deferred revenue at
the end of the June 2007 quarter was $2.66 billion, compared
to $2.31 billion at the end of the June 2006 quarter.
Non-GAAP deferred revenue at the end of the quarter reached
$2.71 billion, up 16 percent compared to $2.34 billion at
the end of the June 2006 quarter. Symantec continues to
benefit from an increasing volume of predictable revenue
rolling off the balance sheet driven by its deferred revenue
model.
GAAP Results: GAAP net income for the June 2007
quarter was $95 million, versus last year’s equivalent
figure of $101 million. Diluted earnings per share of $0.10
were flat versus the same quarter last year. Profits were
impacted by a $19 million restructuring charge related to
the reduction in force announced in February 2007 and
further facilities consolidation activities.
Non-GAAP
Results: Non-GAAP net income for the June 2007 quarter was
$263 million, up 4 percent compared to $253 million for the
same quarter last year. Non-GAAP diluted earnings per share
were $0.29, up 21 percent compared to diluted earnings per
share of $0.24 for the same quarter last year. For a
detailed reconciliation of our GAAP to non-GAAP results,
please refer to the condensed consolidated financial
statements below.
“Performance for the quarter was
driven by strong demand in many of our core and emerging
technology solutions, as well as solid execution by our
services, consumer and Altiris teams,” said John W.
Thompson, chairman and chief executive officer, Symantec.
“We’re off to a good start to our fiscal
year.”
Financial Highlights
For the quarter,
Symantec’s Consumer segment represented 30 percent of
total non-GAAP revenue and grew 11 percent year-over-year.
The Security and Data Management segment represented 30
percent of total revenue and grew 4 percent year-over-year.
The Data Center Management segment represented 28 percent of
total revenue and grew 5 percent year-over-year. Services
represented 6 percent of total revenue and grew 13 percent
year-over-year. The Altiris segment includes revenues from
the acquisition of Altiris and Symantec’s Ghost,
pcAnywhere and LiveState Delivery solutions, and represented
6 percent of total revenue.
International revenues
represented 51 percent of total non-GAAP revenue in the June
2007 quarter and grew 12 percent year-over-year. The
Europe, Middle East and Africa region represented 33 percent
of total revenue for the quarter and grew 15 percent
year-over-year. The Asia Pacific/Japan revenue for the
quarter represented 13 percent of total revenue and grew 8
percent year-over-year. The Americas, including the United
States, Latin America and Canada, represented 54 percent of
total revenue and increased 8 percent year-over-year.
September Quarter 2007 Guidance
For the September
2007 quarter, GAAP revenue is estimated between $1.35
billion and $1.38 billion. GAAP diluted earnings per share
are estimated between $0.07 and $0.09.
Non-GAAP revenue
for the September 2007 quarter is estimated between $1.37
billion and $1.40 billion. Non-GAAP diluted earnings per
share are estimated between $0.24 and $0.26.
GAAP
deferred revenue is expected to be in the range of $2.53
billion and $2.58 billion. Non-GAAP deferred revenue is
expected to be in the range of $2.55 billion and $2.60
billion.
For the September 2007 quarter, we expect cash flow from operating activities to be below the September 2006 quarter cash flow from operating activities of $276 million.
Quarterly Highlights
• Symantec signed 249
contracts worldwide worth more than $300,000 each, including
48 worth more than $1 million each, during the quarter. Of
those 249 contracts, more than 70 percent were multiple
product deals.
• In North America, Symantec signed
new or extended agreements with customers including Atmel,
an industry leader in the design and manufacture of advanced
semiconductors; Accor North America, a division of Accor,
one of the world’s largest groups in travel, tourism and
corporate services; Florida Department of Transportation,
which oversees 7,450 employees statewide, 41,000 highway
lane miles, 6,381 bridges, 14 seaports and 2,707 railway
miles; GTECH Corp., a leading gaming technology and services
company; Children’s Healthcare of Atlanta, one of the
leading paediatric hospitals in the country, recognised for
excellence in cancer, cardiac and neonatal care; AMN
Healthcare, Inc., the nation’s largest healthcare staffing
company; Rite Aid Corporation, a leading drugstore chain
with more than 5,000 stores in 31 U.S. states and the
District of Columbia; Indiana University, educating 97,000
students on eight campuses across the state and South
Carolina Department of Health and Environmental Control, a
health agency that promotes and protects the health of the
public and the environment.
• New or extended
agreements with international customers from the quarter
included British Sky Broadcasting, which operates the UK’s
largest digital pay television platform, Sky Digital;
National Health Insurance Corp., the only public health
insurer in Korea; Beijing Mobile, a subsidiary of China
Mobile Ltd., the leading mobile services provider in China;
Colegio de Registradores de Espana, the Association of
Spanish Property and Commercial Registrars; Siemens IT
Solutions and Services Brazil, part of one of the world’s
largest technology groups and Cable & Wireless Jamaica, the
leading full-service telecommunications provider in the
Americas & Caribbean region.
About Symantec
Symantec
is a global leader in infrastructure software, enabling
businesses and consumers to have confidence in a connected
world. The company helps customers protect their
infrastructure, information and interactions by delivering
software and services that address risks to security,
availability, compliance and performance. Headquartered in
Cupertino, California, Symantec has operations in 40
countries. More information is available at
www.symantec.com.
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