Analytics
1/29/2014
04:57 PM
Dark Reading
Dark Reading
Products and Releases
Connect Directly
RSS
E-Mail
50%
50%

Symantec Reports Third Quarter Fiscal 2014 Results

Reports revenue of $1.7 billion for its third quarter of fiscal year 2014, ended Dec. 27, 2013

MOUNTAIN VIEW, CA -- (Marketwired) -- 01/29/14 -- Symantec Corp. (NASDAQ: SYMC) today reported revenue of $1.7 billion for its third quarter of fiscal year 2014, ended December 27, 2013, down 5% year-over-year and down 4% after adjusting for currency. Non-GAAP operating margin of 30.1 percent grew 370 basis points after adjusting for currency, resulting in non-GAAP earnings per share of $0.51, up 13% year-over-year. GAAP operating margin of 23.8 percent grew 680 basis points, resulting in GAAP earnings per share of $0.40, up 29% year-over-year.

"We benefited in the December quarter from improved total business activity after separating our sales organization into dedicated new business and renewal teams earlier this year," said Steve Bennett, president and chief executive officer, Symantec. "Although revenue declined, we exceeded our expectations in operating margin and EPS. While we won't be pleased until total business activity is growing again, I'm happy with our financial results given the massive changes in our business."

"Since July, we've made substantial progress in three areas -- offerings, go-to-market, and increased efficiency -- to drive improved long-term performance. We have the right strategy to leverage Symantec's assets and better solve our customers' biggest problems. We are where we expected to be at this point in our 3-to 5-year transformation, as we continue to make the changes needed to achieve our long-term targets."

GAAP Results for the Third Quarter of Fiscal Year 2014

· GAAP operating margin was 23.8 percent, up 680 basis points year-over-year and up 625 basis points after adjusting for currency.

· GAAP net income was $283 million, up 31% year-over-year.

· GAAP diluted earnings per share were $0.40, up 29% year-over-year.

· GAAP deferred revenue as of December 27, 2013 was $3.59 billion, down 6% year-over-year and down 5% after adjusting for currency.

· Cash flow from operating activities was $329 million, down 29% year-over-year.

Non-GAAP Results for the Third Quarter of Fiscal Year 2014

· Non-GAAP operating margin was 30.1 percent, up 420 basis points year-over-year and up 370 basis points after adjusting for currency.

· Non-GAAP net income was $358 million, up 13% year-over-year.

· Non-GAAP diluted earnings per share were $0.51, up 13% year-over-year.

Business Segment Highlights for the Quarter

· The User Productivity & Protection segment represented 42% of total revenue and declined 4% year-over-year (as reported and after adjusting for currency) to $718 million.

· The Information Security segment represented 19% of total revenue and declined 3% year-over-year (1 percent after adjusting for currency) to $327 million.

· The Information Management segment represented 39% of total revenue and declined 6% year-over-year (7 percent after adjusting for currency) to $660 million.

Geographic Highlights for the Quarter

· International revenue represented 53% of total revenue and decreased 4% year-over-year (3 percent after adjusting for currency).

· The Europe, Middle East and Africa region represented 29% of total revenue and decreased 1% year-over-year (5 percent after adjusting for currency).

· The Asia Pacific/Japan region represented 17% of total revenue and decreased 12% year-over-year (4 percent after adjusting for currency).

· The Americas, including the United States, Latin America and Canada, represented 54% of total revenue and decreased 4% year-over-year (as reported and after adjusting for currency).

Capital Allocation

Symantec ended the quarter with cash, cash equivalents and short-term investments of $3.9 billion compared to $4.3 billion, a decrease of 9% year-over-year. On December 18, 2013, we paid a dividend of $0.15 per share for a total of $104 million. Also, during the quarter, Symantec repurchased 5.3 million shares for $125 million at an average price of $23.76. At the end of the third quarter, Symantec had $783 million remaining for future repurchases in the current board authorized stock repurchase plan.

Symantec's Board of Directors has declared a quarterly cash dividend of $0.15 per common share to be paid on March 19, 2014 to all shareholders of record as of the close of business on February 24, 2014. The ex-dividend date will be February 20, 2014.

Fourth Quarter Fiscal Year 2014 Guidance

For the fourth quarter of fiscal 2014, we expect:

· Revenue of $1.615 to $1.655 billion, compared to $1.748 billion in the year-ago period.

· GAAP operating margin of 18.0 to 19.5 percent compared to 14.6 percent in the year-ago period.

· Non-GAAP operating margin of 24.5 to 26.0 percent compared to 24.1 percent in the year-ago period.

· GAAP diluted earnings per share between $0.29 and $0.31 as compared to $0.27 in the year-ago period.

· Non-GAAP diluted earnings per share between $0.40 and $0.42 as compared to $0.44 in the year-ago period.

Guidance assumes an exchange rate of $1.36 per Euro for the March 2014 quarter versus the actual weighted average rate of $1.32and an end of period rate of $1.28 per Euro for the March 2013 quarter. Our guidance assumes an effective tax rate of 28% and a common stock equivalents total for the quarter of 702 million shares.

Fiscal Year 2014 Guidance

For the fiscal year 2014, we expect:

· Revenue of $6.666 to $6.706 billion, compared to $6.906 billion in the year-ago period.

· GAAP operating margin of 17.6 to 17.9 percent compared to 16.0 percent in the year-ago period.

· Non-GAAP operating margin of 26.9 to 27.2 percent compared to 25.5 percent in the year-ago period.

· GAAP diluted earnings per share between $1.25 and $1.27 as compared to $1.06 in the year-ago period.

· Non-GAAP diluted earnings per share between $1.85 and $1.87 as compared to $1.76 in the year-ago period.

Conference Call

Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss the results of its fiscal third quarter 2014, endedDecember 27, 2013 and to review guidance. Interested parties may access the conference call on the Internet athttp://www.symantec.com/invest. To listen to the live call, please go to the website at least 15 minutes early to register, download and install any necessary audio software. A replay and script of our officers' remarks will be available on the investor relations' home page shortly after the call is completed.

About Symantec

Symantec protects the world's information, and is the global leader in security, backup and availability solutions. Our innovative products and services protect people and information in any environment -- from the smallest mobile device, to the enterprise data center, to cloud-based systems. Our industry-leading expertise in protecting data, identities and interactions gives our customers' confidence in a connected world. More information is available at www.symantec.com or by connecting with Symantec at:go.symantec.com/socialmedia.

Comment  | 
Print  | 
More Insights
Register for Dark Reading Newsletters
Partner Perspectives
What's This?
In a digital world inundated with advanced security threats, Intel Security seeks to transform how we live and work to keep our information secure. Through hardware and software development, Intel Security delivers robust solutions that integrate security into every layer of every digital device. In combining the security expertise of McAfee with the innovation, performance, and trust of Intel, this vision becomes a reality.

As we rely on technology to enhance our everyday and business life, we must too consider the security of the intellectual property and confidential data that is housed on these devices. As we increase the number of devices we use, we increase the number of gateways and opportunity for security threats. Intel Security takes the “security connected” approach to ensure that every device is secure, and that all security solutions are seamlessly integrated.
Featured Writers
White Papers
Cartoon
Current Issue
Dark Reading's October Tech Digest
Fast data analysis can stymie attacks and strengthen enterprise security. Does your team have the data smarts?
Flash Poll
Threat Intel Today
Threat Intel Today
The 397 respondents to our new survey buy into using intel to stay ahead of attackers: 85% say threat intelligence plays some role in their IT security strategies, and many of them subscribe to two or more third-party feeds; 10% leverage five or more.
Video
Slideshows
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2013-7407
Published: 2014-10-22
Cross-site request forgery (CSRF) vulnerability in the MRBS module for Drupal allows remote attackers to hijack the authentication of unspecified victims via unknown vectors.

CVE-2014-3675
Published: 2014-10-22
Shim allows remote attackers to cause a denial of service (out-of-bounds read) via a crafted DHCPv6 packet.

CVE-2014-3676
Published: 2014-10-22
Heap-based buffer overflow in Shim allows remote attackers to execute arbitrary code via a crafted IPv6 address, related to the "tftp:// DHCPv6 boot option."

CVE-2014-3677
Published: 2014-10-22
Unspecified vulnerability in Shim might allow attackers to execute arbitrary code via a crafted MOK list, which triggers memory corruption.

CVE-2014-3828
Published: 2014-10-22
Multiple SQL injection vulnerabilities in Centreon 2.5.1 and Centreon Enterprise Server 2.2 allow remote attackers to execute arbitrary SQL commands via (1) the index_id parameter to views/graphs/common/makeXML_ListMetrics.php, (2) the sid parameter to views/graphs/GetXmlTree.php, (3) the session_id...

Best of the Web
Dark Reading Radio
Archived Dark Reading Radio
Follow Dark Reading editors into the field as they talk with noted experts from the security world.