Symantec Reports Record Revenue And Earnings In Fiscal Third Quarter
CUPERTINO, Calif. – Jan. 19, 2005 – Symantec Corp. (Nasdaq:SYMC), the global leader in information security, today reported results for its fiscal third quarter ended Dec. 31, 2004. Symantec posted revenue for the quarter of $695 million, a 41 percent increase compared to $494 million for the same quarter last year, driven by strong performance in all business segments.
GAAP Results: Net income for the fiscal third quarter was $164 million, compared to $111 million for the same quarter last year. Earnings per share was $0.22, a 38 percent increase compared to earnings per share of $0.16 for the year-ago quarter.
Non-GAAP Results: Non-GAAP net income for the fiscal third quarter was $175 million, compared to $120 million for the same quarter last year. Non-GAAP earnings per share was $0.24, a 41 percent increase compared to earnings per share of $0.17 for the year-ago quarter. Non-GAAP results, as outlined in the attached consolidated statements and related reconciliation, exclude amortization of other intangibles from acquisitions, amortization of deferred stock-based compensation, acquired in-process research and development, restructuring charges, and patent settlement charges as well as related income tax benefits. See “Use of Non-GAAP Financial Information” below.
“All business segments had strong double digit growth as customers continue to turn to Symantec to manage the integrity of their information assets,” said John W. Thompson, Symantec chairman and CEO. “Solid online business, a record number of large enterprise transactions, both in size and number, and incredible international performance underpinned our success in the quarter.”
For the quarter, Symantec’s worldwide enterprise business, including enterprise security, enterprise administration, and services, represented 48 percent of total revenue and grew 33 percent year-over-year. Symantec’s enterprise security business represented 35 percent of total revenue and grew 29 percent; the enterprise administration business represented 11 percent of total revenue and grew 46 percent; and the services business represented 2 percent of total revenue and grew 37 percent. Symantec’s consumer business represented 52 percent of total revenue and grew 49 percent.
International revenues represented 54 percent of total revenue in the third quarter and grew 41 percent over the same quarter last year. The Americas, including the United States, Latin America, and Canada, represented 51 percent of total revenue and grew 39 percent. The Europe, Middle East and Africa region represented 35 percent of total revenue and grew 39 percent. Japan/Asia Pacific represented 14 percent of total revenue and grew 53 percent.
Symantec is providing forward-looking guidance for the fiscal fourth quarter ending April 1, 2005, as follows:
Ã‚Â· Revenue is estimated between $690 million and $710 million.
Ã‚Â· At the mid-point of revenue guidance, GAAP earnings per share is estimated to be $0.23.
Ã‚Â· At the mid-point of revenue guidance, non-GAAP earnings per share is estimated to be $0.24.
Symantec is raising forward-looking guidance for fiscal year 2005 ending April 1, 2005, as follows:
Ã‚Â· Revenue is estimated to be $2.570 billion.
Ã‚Â· Deferred revenue is expected to be approximately $1.35 billion based on the mid-point of fiscal fourth quarter revenue guidance.
Ã‚Â· GAAP earnings per share is estimated at $0.80.
Ã‚Â· Non-GAAP earnings per share is estimated at $0.86.
Non-GAAP earnings per share guidance excludes the pre-tax amortization of other intangibles from acquisitions, amortization of deferred stock-based compensation, acquired in-process research and development and restructuring charges of approximately $14 million and $64 million for the fiscal quarter and year ending April 1, 2005, respectively.
Ã‚Â· During the quarter the total number of transactions worldwide worth more than $100,000 each was 410, including 122 worth more than $300,000 and 25 worth more than $1 million each. Overall, 132 more large enterprise transactions were generated compared to the year-ago quarter.
Ã‚Â· Symantec signed new or extended agreements with customers including CIGNA, an employee benefits company; EarthLink, one of the nation’s leading Internet service providers; SAS, the leader in business intelligence; AgriBank, FCB, a financial intermediary providing wholesale funds and services; APAC Customer Services, Inc., a leading provider of customer interaction solutions; HDR, an architectural, engineering, and consulting firm; Andrew Corporation, a global communications equipment and systems supplier; APL, a global container transportation company; Alcan, a global leader in aluminum and packaging, as well as aluminum recycling; Select Medical Corporation, a leading operator of specialty hospitals in the United States; Northeastern Regional Information Center (NERIC), a department of the New York Capital Regional Board of Cooperative Educational Services; Capital Health, Canada’s largest integrated academic health region, providing complete health services to 1.6 million residents across central and northern Alberta; and West Virginia University.
Ã‚Â· International customers from the quarter included Wipro, a leading IT solutions and services provider in application development, system integration, product implementation and consulting services; SOLVAY S.A., an international chemical and pharmaceutical group with headquarters in Brussels; Dexia Groupe, the second largest financial group in Belgium; Belgacom, the leading Internet service provider and operator in Belgium; Ballast Nedam, one of the largest construction companies in The Netherlands; Swift, a financial industry-owned co-operative supplying secure, standardized messaging services and interface software; Telstra, Australia’s leading telecommunications and information services company; GLOBO.COM, the leading video and broadband provider in Brazil; and HypoVereinsbank AG, the second largest quoted bank in Germany.
Symantec is the global leader in information security providing a broad range of software, appliances and services designed to help individuals, small and mid-sized businesses, and large enterprises secure and manage their IT infrastructure. Symantec’s Norton brand of products is the worldwide leader in consumer security and problem-solving solutions. Headquartered in Cupertino, Calif., Symantec has operations in more than 35 countries. More information is available at http://www.symantec.com.