Symantec reports record revenue growth in fiscal second quarter
Announcement posted by Symantec (Consumer) 22 Oct 2004
Raises fiscal year guidance
Symantec Corp. (Nasdaq: SYMC), the global leader in information security, today reported results for the fiscal second quarter ended Oct. 1, 2004. Symantec posted revenue for the quarter of US$618 million, a 44 per cent increase compared to US$429 million for the same quarter last year, driven by solid execution across all business segments and regions.
GAAP Results: Net income for the fiscal second quarter wasUS$136 million, compared toUS$83 million for the same quarter last year. Earnings per share wasUS$0.38, a 58 per cent increase compared to earnings per share ofUS$0.24 for the year-ago quarter.
Non-GAAP Results: Non-GAAP net income for the fiscal second quarter wasUS$146 million, compared toUS$91 million for the same quarter last year. Non-GAAP earnings per share wasUS$0.41, a 52 per cent increase compared to earnings per share ofUS$0.27 for the year-ago quarter. Non-GAAP results and related reconciliation, as outlined in the attached consolidated statements, exclude amortisation of other intangibles from acquisitions, amortisation 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.
We continue to gain momentum in our consumer and enterprise business segments as customers look for solutions to help them create a balance between the security and availability of their information assets, said John W. Thompson, Symantec chairman and CEO. In addition, our international performance remains solid across all regions.
Revenue Components
For the quarter, Symantecs worldwide enterprise business, including enterprise security, enterprise administration, and services, represented 49 per cent of total revenue and grew 29 per cent year-over-year. Symantecs enterprise security business represented 36 per cent of total revenue and grew 27 per cent; the enterprise administration business represented 11 per cent of total revenue and grew 36 per cent; and the services business represented 2 per cent of total revenue and grew 22 per cent. Symantecs consumer business represented 51 per cent of total revenue and grew 63 per cent.
International revenues represented 52 per cent of total revenue in the second quarter and grew 51 per cent over the same quarter last year. The Americas, including the United States, Latin America, and Canada, grew 38 per cent. The Europe, Middle East and Africa region recorded 52 per cent growth and Japan/Asia Pacific grew 52 per cent.
Business Outlook
Symantec is providing forward-looking guidance for the fiscal third quarter ending Dec. 31, 2004, as follows:
- Revenue is estimated betweenUS$645 million andUS$665 million.
- At the mid-point of revenue guidance, GAAP earnings per share is estimated to beUS$0.41.
- At the mid-point of revenue guidance, non-GAAP earnings per share is estimated to beUS$0.43.
Symantec is raising forward-looking guidance for fiscal year 2005 ending April 1, 2005, as follows:
- Revenue is estimated to beUS$2.495 billion, an increase ofUS$90 million from prior guidance.
- By business segment we are estimating revenue growth for fiscal year 2005 as follows:
Enterprise Security - 24 per centgrowth
Consumer Products - 44 per centgrowth
Enterprise Administration - 25 per cent growth
Services - 19 per cent growth
- Deferred revenue is expected to be betweenUS$1.30 billion andUS$1.35 billion at the end of fiscal year 2005.
- GAAP earnings per share is estimated atUS$1.54, an increase ofUS$0.06 from prior guidance.
- Non-GAAP earnings per share is estimated atUS$1.64, an increase of US$0.07 from prior guidance.
Non-GAAP earnings per share guidance excludes the pre-tax amortisation of other intangibles from acquisitions, amortisation of deferred stock-based compensation, acquired in-process research and development and restructuring charges of approximatelyUS$14 million andUS$56 million for the quarter ending Dec. 31, 2004, and the fiscal year ending April 1, 2005, respectively.
Quarterly Highlights
- During the quarter the total number of transactions worldwide worth more than $100,000 each was 311, including 67 worth more than $300,000 each and 10
worth more than $1million each. Customers from the quarter included Park Nicollet Health Services, a nonprofit, integrated care system; StorageTek, a
leading provider of enterprise information lifecycle management; and South Florida Water Management District, a regional, governmental agency that
oversees water resources in the southern half of Florida.
- International customers from the quarter included TELCEL, the leading wireless operator in Mexico; PartnerRe Ltd., a leading international reinsurance group providing multi-line reinsurance to insurance companies on a worldwide basis; TelstraClear Limited, New Zealand's second largest full-service telecommunications company; iiNet, a leading Internet Service Provider in Australia and New Zealand; Alenia Spazio, a leading Italian aerospace company; All Nippon Airways Co., Ltd, a leading airline company in Japan; and Mitsui Sumitomo Insurance Company, Limited, one of the leading non-life insurance companies in Japan.
About Symantec
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.
GAAP Results: Net income for the fiscal second quarter wasUS$136 million, compared toUS$83 million for the same quarter last year. Earnings per share wasUS$0.38, a 58 per cent increase compared to earnings per share ofUS$0.24 for the year-ago quarter.
Non-GAAP Results: Non-GAAP net income for the fiscal second quarter wasUS$146 million, compared toUS$91 million for the same quarter last year. Non-GAAP earnings per share wasUS$0.41, a 52 per cent increase compared to earnings per share ofUS$0.27 for the year-ago quarter. Non-GAAP results and related reconciliation, as outlined in the attached consolidated statements, exclude amortisation of other intangibles from acquisitions, amortisation 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.
We continue to gain momentum in our consumer and enterprise business segments as customers look for solutions to help them create a balance between the security and availability of their information assets, said John W. Thompson, Symantec chairman and CEO. In addition, our international performance remains solid across all regions.
Revenue Components
For the quarter, Symantecs worldwide enterprise business, including enterprise security, enterprise administration, and services, represented 49 per cent of total revenue and grew 29 per cent year-over-year. Symantecs enterprise security business represented 36 per cent of total revenue and grew 27 per cent; the enterprise administration business represented 11 per cent of total revenue and grew 36 per cent; and the services business represented 2 per cent of total revenue and grew 22 per cent. Symantecs consumer business represented 51 per cent of total revenue and grew 63 per cent.
International revenues represented 52 per cent of total revenue in the second quarter and grew 51 per cent over the same quarter last year. The Americas, including the United States, Latin America, and Canada, grew 38 per cent. The Europe, Middle East and Africa region recorded 52 per cent growth and Japan/Asia Pacific grew 52 per cent.
Business Outlook
Symantec is providing forward-looking guidance for the fiscal third quarter ending Dec. 31, 2004, as follows:
- Revenue is estimated betweenUS$645 million andUS$665 million.
- At the mid-point of revenue guidance, GAAP earnings per share is estimated to beUS$0.41.
- At the mid-point of revenue guidance, non-GAAP earnings per share is estimated to beUS$0.43.
Symantec is raising forward-looking guidance for fiscal year 2005 ending April 1, 2005, as follows:
- Revenue is estimated to beUS$2.495 billion, an increase ofUS$90 million from prior guidance.
- By business segment we are estimating revenue growth for fiscal year 2005 as follows:
Enterprise Security - 24 per centgrowth
Consumer Products - 44 per centgrowth
Enterprise Administration - 25 per cent growth
Services - 19 per cent growth
- Deferred revenue is expected to be betweenUS$1.30 billion andUS$1.35 billion at the end of fiscal year 2005.
- GAAP earnings per share is estimated atUS$1.54, an increase ofUS$0.06 from prior guidance.
- Non-GAAP earnings per share is estimated atUS$1.64, an increase of US$0.07 from prior guidance.
Non-GAAP earnings per share guidance excludes the pre-tax amortisation of other intangibles from acquisitions, amortisation of deferred stock-based compensation, acquired in-process research and development and restructuring charges of approximatelyUS$14 million andUS$56 million for the quarter ending Dec. 31, 2004, and the fiscal year ending April 1, 2005, respectively.
Quarterly Highlights
- During the quarter the total number of transactions worldwide worth more than $100,000 each was 311, including 67 worth more than $300,000 each and 10
worth more than $1million each. Customers from the quarter included Park Nicollet Health Services, a nonprofit, integrated care system; StorageTek, a
leading provider of enterprise information lifecycle management; and South Florida Water Management District, a regional, governmental agency that
oversees water resources in the southern half of Florida.
- International customers from the quarter included TELCEL, the leading wireless operator in Mexico; PartnerRe Ltd., a leading international reinsurance group providing multi-line reinsurance to insurance companies on a worldwide basis; TelstraClear Limited, New Zealand's second largest full-service telecommunications company; iiNet, a leading Internet Service Provider in Australia and New Zealand; Alenia Spazio, a leading Italian aerospace company; All Nippon Airways Co., Ltd, a leading airline company in Japan; and Mitsui Sumitomo Insurance Company, Limited, one of the leading non-life insurance companies in Japan.
About Symantec
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.