Symantec Reports Second Quarter Fiscal 2013 Results; Delivering

Symantec Reports Second Quarter Fiscal 2013 Results; Delivering
Record September Revenue, EPS and Deferred Revenue 
MOUNTAIN VIEW, CA -- (Marketwire) -- 10/24/12 --  Symantec Corp.
(NASDAQ: SYMC) today reported the results of its second quarter of
fiscal year 2013, ended Sept. 28, 2012. GAAP revenue for the fiscal
second quarter was $1.7 billion, up 1 percent year-over-year and up 5
percent after adjusting for currency. 
Click to Tweet: #SYMC posts record second quarter results:
http://bit.ly/TaPm28 
"I am pleased with the team's results and progress made this quarter.
We delivered solid results during the first quarter of a significant
transition for the company," said Steve Bennett, chairman, president
and chief executive officer, Symantec. "After travelling the world
speaking to employees, customers and shareholders, there is a strong
sense of excitement about our future success. While focused on
running the company, the team is also hard at work building a
strategy and operational plan to deliver greater than 5 percent
organic growth and 30 percent operating margins on a sustainable
basis within the next two-to-three years." 
"We delivered better than expected results with record September
revenue and deferred revenue, in addition to strong net income and
EPS as we continue to make improvements to the performance of our
businesses," said James Beer, executive vice president and chief
financial officer, Symantec. "We saw strength in enterprise security
and backup as well as growth in consumer security."  
GAAP Results for second quarter of fiscal year 2013  


 
--  GAAP operating margin was 18.0 percent compared with 17.0 percent for
    the same quarter last year, up 6 percent year-over-year.
--  GAAP net income was $193 million compared with net income of $182
    million for the year-ago period, up 6 percent year-over-year.
--  GAAP diluted earnings per share were $0.27 compared with $0.24 for the
    year ago quarter, up 13 percent year-over-year.
--  GAAP deferred revenue was $3.619 billion compared with $3.452 billion
    for the year ago quarter, up 5 percent year-over-year on an actual and
    currency-adjusted basis.
--  Cash flow from operating activities was $178 million compared with
    $308 million for the year ago period due to higher tax, restructuring
    and transition payments, foreign currency movements as well as lower
    September quarter cash collections.
--  Symantec ended the quarter with cash, cash equivalents and short-term
    investments of $4.0 billion. During the quarter, Symantec repurchased
    12 million shares for $200 million at an average price of $16.48.
    Symantec has $483 million remaining in the current board authorized
    stock repurchase plan.

  
Non-GAAP Results for second quarter of fiscal year 2013  


 
--  Non-GAAP operating margin was 27.5 percent compared with 25.5 percent
    for the same quarter last year, up 200 basis points year-over-year (up
    250 basis points after adjusting for currency) driven by stronger
    revenue and lower costs.
--  Non-GAAP net income was $322 million, compared to $295 million for the
    same quarter last year, up 9 percent year-over-year.
--  Non-GAAP diluted earnings per share were $0.45 compared with earnings
    per share of $0.39 for the year-ago quarter, up 15 percent
    year-over-year.

  
Business Segment Highlights for the Quarter 


 
--  The Consumer segment represented 31 percent of total revenue and
    decreased 1 percent year-over-year (increased 3 percent after
    adjusting for currency).
--  The Security and Compliance segment represented 30 percent of total
    revenue and increased 6 percent year-over-year (increased 9 percent
    after adjusting for currency).
--  The Storage and Server Management segment represented 35 percent of
    total revenue and decreased 2 percent year-over-year (increased 2
    percent after adjusting for currency).
--  Services represented 4 percent of total revenue and increased 2
    percent year-over-year (increased 7 percent after adjusting for
    currency).

  
Geographic Highlights for the Quarter 


 
--  International revenue represented 51 percent of total revenue and
    increased 1 percent year-over-year (increased 7 percent after
    adjusting for currency).
--  The Europe, Middle East and Africa region represented 26 percent of
    total revenue and decreased 4 percent year-over-year (increased 7
    percent after adjusting for currency).
--  Asia Pacific/Japan revenue represented 20 percent of total revenue and
    increased 6 percent year-over-year (increased 8 percent after
    adjusting for currency).
--  The Americas, including the United States, Latin America and Canada,
    represented 54 percent of total revenue and increased 2 percent
    year-over-year on an actual and currency-adjusted basis.

  
Third Quarter Fiscal Year 2013 Guidance 
Guidance assumes an exchange rate of $1.30 per Euro for the December
2012 quarter versus the actual weighted average rate of $1.35 and an
end of period rate of $1.30 per Euro for the December 2011 quarter.
Our guidance assumes an effective tax rate of 28.5 percent and a
common stock equivalents total for the quarter of approximately 700
million shares. 
For the third quarter of fiscal 2013, Symantec expects:  


 
--  GAAP revenue of $1.72 billion to $1.75 billion, up 0 to 2 percent as
    reported and up 1 to 3 percent in constant currency.
--  GAAP diluted earnings per share between $0.17 and $0.19 as compared to
    $0.32 in the year ago period.
--  Non-GAAP diluted earnings per share between $0.36 and $0.38 as
    compared to $0.42 in the year ago period, due to investments to better
    serve customers.
--  GAAP deferred revenue is estimated to be between $3.765 billion and
    $3.825 billion, up 3 to 4 percent on an actual and currency-adjusted
    basis.

  
Conference Call
 Symantec has scheduled a conference call for 5 p.m.
ET/2 p.m. PT today to discuss the results from the fiscal 2013 second
quarter, ended Sept. 28, 2012, and to review guidance. Interested
parties may access the conference call on the Internet at
http://www.symantec.com/invest. To listen to the live call, please go
to the Web site 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. 
NOTE TO EDITORS: If you would like additional information on Symantec
Corporation and its products, please visit the Symantec News Room at
http://www.symantec.com/news. All prices noted are in U.S. dollars
and are valid only in the United States. 
Symantec and the Symantec Logo are trademarks or registered
trademarks of Symantec Corporation or its affiliates in the U.S. and
other countries. Other names may be trademarks of their respective
owners. 
FORWARD-LOOKING STATEMENTS: This press release contains statements
regarding our financial and business results, which may be considered
forward-looking within the meaning of the U.S. federal securities
laws, including projections of future revenue, earnings per share and
deferred revenue, as well as projections of amortization of
acquisition-related intangibles and stock-based compensation and
restructuring charges. These statements are subject to known and
unknown risks, uncertainties and other factors that may cause our
actual results, levels of activity, performance or achievements to
differ materially from results expressed or implied in this press
release. Such risk factors include those related to: general economic
conditions; maintaining customer and partner relationships; the
anticipated growth of certain market segments, particularly with
regard to security and storage; the competitive environment in the
software industry; changes to operating systems and product strategy
by vendors of operating systems; fluctuations in currency exchange
rates; the timing and market acceptance of new product releases and
upgrades; the successful development of new offerings and integration
of acquired businesses, and the degree to which these offerings and
businesses gain market acceptance. Actual results may differ
materially from those contained in the forward-looking statements in
this press release. We assume no obligation, and do not intend, to
update these forward-looking statements as a result of future events
or developments. Additional information concerning these and other
risks factors is contained in the Risk Factors sections of our Form
10-K for the year ended March 30, 2012 and our Current Report on Form
8-K filed on June 11, 2012.  
USE OF NON-GAAP FINANCIAL INFORMATION: Our results of operations have
undergone significant change due to a series of acquisitions, the
impact of stock-based compensation, impairment charges and other
corporate events. To help our readers understand our past financial
performance and our future results, we supplement the financial
results that we provide in accordance with generally accepted
accounting principles, or GAAP, with non-GAAP financial measures. The
method we use to produce non-GAAP results is not computed according
to GAAP and may differ from the methods used by other companies. Our
non-GAAP results are not meant to be considered in isolation or as a
substitute for comparable GAAP measures and should be read only in
conjunction with our consolidated financial statements prepared in
accordance with GAAP. Our management regularly uses our supplemental
non-GAAP financial measures internally to understand, manage and
evaluate our business and make operating decisions. These non-GAAP
measures are among the primary factors management uses in planning
for and forecasting future periods. Investors are encouraged to
review the reconciliation of our non-GAAP financial measures to the
comparable GAAP results, which is attached to our quarterly earnings
release and which can be found, along with other financial
information, on the investor relations' page of our Web site at
www.symantec.com/invest.  


 
                                                                            
                                                                            
                                                                            
                            SYMANTEC CORPORATION                            
                    Condensed Consolidated Balance Sheets                   
                                (In millions)                               
                                                                            
                                                 September 28,   March 30,  
                                                      2012        2012 (1)  
                                                  (Unaudited)               
                                                 ------------- -------------
                                                                            
ASSETS                                                                      
                                                                            
Current assets:                                                             
  Cash and cash equivalents                      $       4,002 $       3,162
  Short-term investments                                     5            49
  Trade accounts receivable, net                           735           940
  Inventories                                               23            28
  Deferred income taxes                                    197           205
  Other current assets                                     244           249
                                                 ------------- -------------
    Total current assets                                 5,206         4,633
                                                 ------------- -------------
                                                                            
Property and equipment, net                              1,114         1,100
Intangible assets, net                                   1,155         1,337
Goodwill                                                 5,842         5,826
Other long-term assets                                     146           124
                                                 ------------- -------------
      Total assets                               $      13,463 $      13,020
                                                 ============= =============
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                                                            
Current liabilities:                                                        
  Accounts payable                               $         278 $         324
  Accrued compensation and benefits                        308           416
  Deferred revenue                                       3,118         3,444
  Current portion of long-term debt                        968             -
  Other current liabilities                                336           321
                                                 ------------- -------------
    Total current liabilities                            5,008         4,505
                                                 ------------- -------------
                                                                            
Long-term debt                                           2,093         2,039
Long-term deferred revenue                                 501           529
Long-term deferred tax liabilities                         312           288
Long-term income taxes payable                             371           393
Other long-term obligations                                 75            94
                                                 ------------- -------------
    Total liabilities                                    8,360         7,848
                                                 ------------- -------------
                                                                            
    Total Symantec Corporation stockholders'                                
     equity                                              5,088         5,094
                                                 ------------- -------------
                                                                            
Noncontrolling interest in subsidiary                       15            78
                                                 ------------- -------------
    Total stockholders' equity                           5,103         5,172
                                                 ------------- -------------
      Total liabilities and stockholders' equity $      13,463 $      13,020
                                                 ============= =============
                                                                            
                                                                            
(1) Derived from audited consolidated financial statements.                 
                                                                            
                                                                            
                                                                            
                            SYMANTEC CORPORATION                            
                Condensed Consolidated Statements of Income                 
              (In millions, except per share data, unaudited)               
                                                                            
                                                       Year-Over-Year       
                        Three Months Ended               Growth Rate        
                   ----------------------------  -------------------------- 
                   September 28,  September 30,                  Constant   
                        2012           2011         Actual      Currency(1) 
                   -------------  -------------  ------------  ------------ 
                                                                            
Net revenue:                                                                
  Content,                                                                  
   subscription,                                                            
   and maintenance $       1,498  $       1,452             3%            7%
  License                    201            229           -12%           -9%
                   -------------  -------------  ------------  ------------ 
    Total net                                                               
     revenue               1,699          1,681             1%            5%
                   -------------  -------------  ------------  ------------ 
                                                                            
Cost of revenue:                                                            
  Content,                                                                  
   subscription,                                                            
   and maintenance           247            232                             
  License                     18             10                             
  Amortization of                                                           
   intangible                                                               
   assets                     19             23                             
                   -------------  -------------  ------------  ------------ 
    Total cost of                                                           
     revenue                 284            265             7%            8%
                   -------------  -------------  ------------  ------------ 
Gross profit               1,415          1,416             0%            4%
                   -------------  -------------  ------------  ------------ 
                                                                            
Operating                                                                   
 expenses:                                                                  
  Sales and                                                                 
   marketing                 659            697                             
  Research and                                                              
   development               247            247                             
  General and                                                               
   administrative            109            106                             
  Amortization of                                                           
   intangible                                                               
   assets                     72             73                             
  Restructuring                                                             
   and transition             23              8                             
                   -------------  -------------  ------------  ------------ 
    Total                                                                   
     operating                                                              
     expenses              1,110          1,131            -2%            1%
                   -------------  -------------  ------------  ------------ 
Operating income             305            285             7%           15%
                   -------------  -------------  ------------  ------------ 
                                                                            
  Interest income              2              4                             
  Interest expense           (35)           (28)                            
  Other income,                                                             
   net                         1              2                             
  Loss from joint                                                           
   venture                     -            (14)                            
                   -------------  -------------  ------------  ------------ 
Income before                                                               
 income taxes                273            249            10%          N/A 
                   -------------  -------------  ------------  ------------ 
                                                                            
  Provision for                                                             
   income taxes               80             67                             
                   -------------  -------------  ------------  ------------ 
Net income                   193            182             6%          N/A 
  Less: Loss                                                                
   attributable to                                                          
   noncontrolling                                                           
   interest                    -              -                             
                   -------------  -------------  ------------  ------------ 
Net income                                                                  
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders      $         193  $         182             6%          N/A 
                   =============  =============  ============  ============ 
                                                                            
Net income per                                                              
 share                                                                      
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders --                                                            
 basic             $        0.27  $        
0.24                             
Net income per                                                              
 share                                                                      
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders --                                                            
 diluted           $        0.27  $        0.24                             
Weighted-average                                                            
 shares                                                                     
 outstanding                                                                
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders --                                                            
 basic                       702            745                             
Weighted-average                                                            
 shares                                                                     
 outstanding                                                                
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders --                                                            
 diluted                     708            751                             
                                                                            
(1) Management refers to growth rates adjusting for currency so that the    
 business results can be viewed without the impact of fluctuations in       
 foreign currency exchange rates. We compare the percentage change in the   
 results from one period to another period in order to provide a framework  
 for assessing how our underlying businesses performed excluding the effect 
 of foreign currency rate fluctuations. To present this information,        
 current and comparative prior period results for entities reporting in     
 currencies other than United States dollars are converted into United      
 States dollars at the actual exchange rates in effect during the           
 respective prior periods.                                                  
                                                                            
                                                                            
                                                                            
                            SYMANTEC CORPORATION                            
                Condensed Consolidated Statements of Income                 
              (In millions, except per share data, unaudited)               
                                                                            
                                                       Year-Over-Year       
                         Six Months Ended                Growth Rate        
                   ----------------------------  -------------------------- 
                   September 28,  September 30,                  Constant   
                        2012           2011         Actual      Currency(1) 
                   -------------  -------------  ------------  ------------ 
                                                                            
Net revenue:                                                                
  Content,                                                                  
   subscription,                                                            
   and maintenance $       2,973  $       2,891             3%            6%
  License                    394            443           -11%           -7%
                   -------------  -------------  ------------  ------------ 
    Total net                                                               
     revenue               3,367          3,334             1%            4%
                   -------------  -------------  ------------  ------------ 
                                                                            
Cost of revenue:                                                            
  Content,                                                                  
   subscription,                                                            
   and maintenance           496            462                             
  License                     35             17                             
  Amortization of                                                           
   intangible                                                               
   assets                     37             45                             
                   -------------  -------------  ------------  ------------ 
    Total cost of                                                           
     revenue                 568            524             8%            9%
                   -------------  -------------  ------------  ------------ 
Gross profit               2,799          2,810             0%            3%
                   -------------  -------------  ------------  ------------ 
                                                                            
Operating                                                                   
 expenses:                                                                  
  Sales and                                                                 
   marketing               1,308          1,362                             
  Research and                                                              
   development               496            486                             
  General and                                                               
   administrative            219            211                             
  Amortization of                                                           
   intangible                                                               
   assets                    144            144                             
  Restructuring                                                             
   and transition             58             20                             
                   -------------  -------------  ------------  ------------ 
    Total                                                                   
     operating                                                              
     expenses              2,225          2,223             0%            3%
                   -------------  -------------  ------------  ------------ 
Operating income             574            587            -2%            4%
                   -------------  -------------  ------------  ------------ 
                                                                            
  Interest income              5              8                             
  Interest expense           (64)           (60)                            
  Other expense,                                                            
   net                        (5)            (2)                            
  Loss from joint                                                           
   venture                     -            (27)                            
                   -------------  -------------  ------------  ------------ 
Income before                                                               
 income taxes                510            506             1%          N/A 
                   -------------  -------------  ------------  ------------ 
                                             
                               
  Provision for                                                             
   income taxes              145            134                             
                   -------------  -------------  ------------  ------------ 
Net income                   365            372            -2%          N/A 
  Less: Loss                                                                
   attributable to                                                          
   noncontrolling                                                           
   interest                    -             (1)                            
                   -------------  -------------  ------------  ------------ 
Net income                                                                  
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders      $         365  $         373            -2%          N/A 
                   =============  =============  ============  ============ 
                                                                            
Net income per                                                              
 share                                                                      
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders --                                                            
 basic             $        0.51  $        0.50                             
Net income per                                                              
 share                                                                      
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders --                                                            
 diluted           $        0.51  $        0.49                             
Weighted-average                                                            
 shares                                                                     
 outstanding                                                                
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders --                                                            
 basic                       709            750                             
Weighted-average                                                            
 shares                                                                     
 outstanding                                                                
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders --                                                            
 diluted                     714            758                             
                                                                            
(1) Management refers to growth rates adjusting for currency so that the    
 business results can be viewed without the impact of fluctuations in       
 foreign currency exchange rates. We compare the percentage change in the   
 results from one period to another period in order to provide a framework  
 for assessing how our underlying businesses performed excluding the effect 
 of foreign currency rate fluctuations. To present this information,        
 current and comparative prior period results for entities reporting in     
 currencies other than United States dollars are converted into United      
 States dollars at the actual exchange rates in effect during the           
 respective prior periods.                                                  
                                                                            
                                                                            
                                                                            
                            SYMANTEC CORPORATION                            
              Condensed Consolidated Statements of Cash Flows               
                          (In millions, unaudited)                          
                                                                            
                                                     Six Months Ended       
                                               ---------------------------- 
                                               September 28,  September 30, 
                                                    2012           2011     
                                               -------------  ------------- 
                                                                            
OPERATING ACTIVITIES:                                                       
Net income                                     $         365  $         372 
                                                                            
Adjustments to reconcile net income to net                                  
 cash provided by operating activities:                                     
  Depreciation                                           141            134 
  Amortization of intangible assets                      181            189 
  Amortization of debt issuance costs and                                   
   discounts                                              29             32 
  Stock-based compensation expense                        83             77 
  Deferred income taxes                                   15             15 
  Excess income tax benefit from the exercise                               
   of stock options                                       (1)            (5)
  Loss from joint venture                                  -             27 
  Other                                                    8              5 
  Net change in assets and liabilities,                                     
   excluding effects of acquisitions:                                       
    Trade accounts receivable, net                       203            331 
    Inventories                                            5              2 
    Accounts payable                                     (34)            37 
    Accrued compensation and benefits                   (107)          (130)
    Deferred revenue                                    (339)          (346)
    Income taxes payable                                  42             73 
    Other assets                                         (24)            (3)
    Other liabilities                                    (49)             1 
                                               -------------  ------------- 
      Net cash provided by operating                                        
       activities                                        518            811 
                                               -------------  ------------- 
                                                                            
INVESTING ACTIVITIES:                                                       
  Purchases of property and equipment                   (168)          (124)
  Cash payments for acquisitions, net of cash                               
   acquired                                              (28)          (364)
  Purchases of held-to-maturity securities                 -            (33)
  Proceeds from held-to-maturity securities               46              - 
  Other                                                    2              1 
                                               -------------  ------------- 
      Net cash used in investing activities             (148)          (520)
                                               -------------  ------------- 
                                                                            
FINANCING ACTIVITIES:                                                       
  Net proceeds from sales of common stock                                   
   under employee stock benefit plans                     75             83 
  Excess income tax benefit from the exercise                               
   of stock options                                        1              5 
  Tax payments related to restricted stock                                  
   issuance                                              (11)           (21)
  Repurchase of common stock                            (501)          (473)
  Purchase of additional interest in                                        
   subsidiary                                            (92)             - 
  Repayment of debt and other obligations                  -           (601)
  Proceeds from debt issuance, net of discount           996              - 
  Debt issuance costs                                     (7)             - 
                                               -------------  ------------- 
      Net cash provided by (used in) financing                              
       activities                                        461         (1,007)
                                               -------------  ------------- 
                                                                            
Effect of exchange rate fluctuations on cash                                
 and cash equivalents                                      9       
     (19)
                                               -------------  ------------- 
Change in cash and cash equivalents                      840           (735)
Beginning cash and cash equivalents                    3,162          2,950 
                                               -------------  ------------- 
Ending cash and cash equivalents               $       4,002  $       2,215 
                                               =============  ============= 
                                                                            
                                                                            
                                      Three Months Ended                    
                   -------------------------------------------------------- 
                        September 28, 2012           September 30, 2011     
                   ---------------------------  --------------------------- 
                     GAAP      Adj    Non-GAAP    GAAP      Adj    Non-GAAP 
                   --------  -------  --------  --------  -------  -------- 
                                                                            
Net revenue:       $  1,699      N/A  $  1,699  $  1,681      N/A  $  1,681 
                   --------  -------  --------  --------  -------  -------- 
                                                                            
Gross profit:      $  1,415  $    23  $  1,438  $  1,416  $    26  $  1,442 
  Stock-based                                                               
   compensation                    4                            3           
  Amortization of                                                           
   intangible                                                               
   assets                         19                           23           
                   --------  -------  --------  --------  -------  -------- 
                                                                            
Gross margin %         83.3%              84.6%     84.2%              85.8%
                   --------  -------  --------  --------  -------  -------- 
                                                                            
Operating                                                                   
 expenses:         $  1,110  $   139  $    971  $  1,131  $   118  $  1,013 
  Stock-based                                                               
   compensation                   41                           35           
  Amortization of                                                           
   intangible                                                               
   assets                         72                           73           
  Restructuring                                                             
   and transition                 23                            8           
  Acquisition-                                                              
   related                                                                  
   expenses                        3                            2           
                   --------  -------  --------  --------  -------  -------- 
                                                                            
Operating expenses                                                          
 as a % of revenue     65.3%              57.2%     67.3%              60.3%
                   --------  -------  --------  --------  -------  -------- 
                                                                            
Operating income   $    305  $   162  $    467  $    285  $   144  $    429 
                   --------  -------  --------  --------  -------  -------- 
                                                                            
Operating margin %     18.0%              27.5%     17.0%              25.5%
                   --------  -------  --------  --------  -------  -------- 
                                                                            
Net income:        $    193  $   129  $    322  $    182  $   113  $    295 
  Gross profit                                                              
   adjustment                     23                           26           
  Operating                                                                 
   expense                                                                  
   adjustment                    139                          118           
  Non-cash                                                                  
   interest                                                                 
   expense                        15                           13           
  Loss on sale of                                                           
   marketable                                                               
   securities                      -                            1           
  Joint venture:                                                            
   Amortization of                                                          
   intangible                                                               
   assets                          -                            2           
  Income tax                                                                
   effect on above                                                          
   items                         (47)                         (47)          
  Tax related                                                               
   adjustments:                                                             
    Release of                                                              
     pre-                                                                   
     acquisition                                                            
     tax                                                                    
     contingencies                (7)            
               -           
    Change in                                                               
     valuation                                                              
     allowance                     6                            -           
                   --------  -------  --------  --------  -------  -------- 
                                                                            
Diluted net income                                                          
 per share                                                                  
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders      $   0.27  $  0.18  $   0.45  $   0.24  $  0.15  $   0.39 
                   --------  -------  --------  --------  -------  -------- 
                                                                            
Diluted weighted-                                                           
 average shares                                                             
 outstanding                                                                
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders           708                708       751                751 
                   --------  -------  --------  --------  -------  -------- 
                                                                            
 
                                            
                        Year-Over-Year      
                     Non-GAAP Growth Rate   
                   ------------------------ 
                                  Constant  
                      Actual    Currency(2) 
                                            
                                            
                   -----------  ----------- 
                                            
Net revenue:                 1%           5%
                   -----------  ----------- 
                                            
Gross profit:                0%           4%
  Stock-based                               
   compensation                             
  Amortization of                           
   intangible                               
   assets                                   
                   -----------  ----------- 
                                            
Gross margin %        -120 bps      -80 bps 
                   -----------  ----------- 
                                            
Operating                                   
 expenses:                  -4%          -1%
  Stock-based                               
   compensation                             
  Amortization of                           
   intangible                               
   assets                                   
  Restructuring                             
   and transition                           
  Acquisition-                              
   related                                  
   expenses                                 
                   -----------  ----------- 
                                            
Operating expenses                          
 as a % of revenue    -310 bps     -330 bps 
                   -----------  ----------- 
                                            
Operating income             9%          14%
                   -----------  ----------- 
                                            
Operating margin %     200 bps      250 bps 
                   -----------  ----------- 
                                            
Net income:                  9%         N/A 
  Gross profit                              
   adjustment                               
  Operating                                 
   expense                                  
   adjustment                               
  Non-cash                                  
   interest                                 
   expense                                  
  Loss on sale of                           
   marketable                               
   securities                               
  Joint venture:                            
   Amortization of                          
   intangible                               
   assets                                   
  Income tax                                
   effect on above                          
   items                                    
  Tax related                               
   adjustments:                             
    Release of                              
     pre-                                   
     acquisition                            
     tax                                    
     contingencies                          
    Change in                               
     valuation                              
     allowance                              
                   -----------  ----------- 
                                            
Diluted net income                          
 per share                                  
 attributable to                            
 Symantec                                   
 Corporation                                
 stockholders               15%         N/A 
                   -----------  ----------- 
                                            
Diluted weighted-                           
 average shares                             
 outstanding                                
 attributable to                            
 Symantec                                   
 Corporation                                
 stockholders               -6%         N/A 
                   -----------  ----------- 
                                            
(1) This presentation includes non-GAAP measures. Our non-GAAP measures are 
 not meant to be considered in isolation or as a substitute for comparable  
 GAAP measures and should be read only in conjunction with our consolidated 
 financial measures prepared in accordance with GAAP. For a detailed        
 explanation of these non-GAAP measures, please see Symantec's Explanation  
 of Non-GAAP Measures in Appendix A.                                        
                                                                            
(2) Management refers to growth rates adjusting for currency so that the    
 business results can be viewed without the impact of fluctuations in       
 foreign currency exchange rates. We compare the percentage change in the   
 results from one period to another period in order to provide a framework  
 for assessing how our underlying businesses performed excluding the effect 
 of foreign currency rate fluctuations. To present this information, current
 and comparative prior period results for entities reporting in currencies  
 other than United States dollars are converted into United States dollars  
 at the actual exchange rates in effect during the respective prior periods.
                                                                            
                                                                            
                                                                            
                            SYMANTEC CORPORATION                            
                  Revenue and Deferred Revenue Detail (1)                   
                          (In millions, unaudited)                          
                                                                            
                                                                            
                                                  Three Months Ended        
                                           -------------------------------- 
                                            September 28,    September 30,  
                                                 2012             2011      
                                           ---------------  --------------- 
GAAP Revenue                                                                
  Content, subscription, and maintenance   $         1,498  $         1,452 
  License                                              201              229 
                                           ---------------  --------------- 
Total Revenue                              $         1,699  $         1,681 
                                           ---------------  --------------- 
GAAP Revenue Y/Y Growth Rate                                                
  Content, subscription, and maintenance                 3%              15%
  License                                              -12%               6%
                                           ---------------  --------------- 
Total Y/Y Growth Rate                                    1%              14%
                                           ---------------  --------------- 
GAAP Revenue Y/Y Growth Rate in Constant                                    
 Currency                                                                   
  Content, subscription, and maintenance                 7%              11%
  License                                               -9%               2%
                                           ---------------  --------------- 
Total Y/Y Growth Rate in Constant Currency               5%               9%
                                           ---------------  --------------- 
                                                                            
GAAP Revenue by Segment                                                     
  Consumer                                 $           528  $           531 
  Security and Compliance                              512              482 
  Storage and Server Management                        595              605 
  Services                                              64               63 
                                           ---------------  --------------- 
GAAP Revenue by Segment: Y/Y Growth Rate                                    
  Consumer                                              -1%              11%
  Security and Compliance                                6%              27%
  Storage and Server Management                         -2%               8%
  Services                                               2%             -15%
                                           ---------------  --------------- 
GAAP Revenue by Segment: Y/Y Growth Rate                                    
 in Constant Currency                                                       
  Consumer                                               3%               7%
  Security and Compliance                                9%              22%
  Storage and Server Management                          2%               4%
  Services                                               7%             -18%
                                           ---------------  --------------- 
                                                                            
GAAP Revenue by Geography                                                   
  International                            $           873  $           868 
  US                                                   826              813 
    Americas (U.S., Latin America, Canada)             922              906 
    EMEA                                               441              459 
    Asia Pacific & Japan                               336              316 
                                           ---------------  --------------- 
GAAP Revenue by Geography: Y/Y Growth Rate                                  
  International                                          1%              17%
  US                                                     2%              10%
    Americas (U.S., Latin America, Canada)               2%              11%
    EMEA                                                -4%              11%
    Asia Pacific & Japan                                 6%              26%
                                           ---------------  --------------- 
GAAP Revenue by Geography: Y/Y Growth Rate                                  
 in Constant Currency                                                       
  International                                          7%               9%
  US                                                     2%              10%
    Americas (U.S., Latin America, Canada)               2%              11%
    EMEA                                                 7%               2%
    Asia Pacific & Japan                                 8%              15%
                                           ---------------  --------------- 
                                                                            
GAAP Deferred Revenue                      $         3,619  $         3,452 
                                           ---------------  --------------- 
GAAP Deferred Revenue Y/Y Growth Rate                    5%              11%
                                           ---------------  --------------- 
GAAP Deferred Revenue Y/Y Growth Rate in                                    
 Constant Currency                                       5%              11%
                                           ---------------  --------------- 
                                                                            
(1) Management refers to growth rates adjusting for currency so that the    
 business results can be viewed without the impact of fluctuations in       
 foreign currency exchange rates. We compare the percentage change in the   
 results from one period to another period in order to provide a framework  
 for assessing how our underlying businesses performed. To exclude the      
 effects of foreign currency rate fluctuations, current and comparative     
 prior period results for entities reporting in currencies other than       
 United States dollars are converted into United States dollars at the      
 actual exchange rates in effect during the respective prior periods (or,   
 in the case of deferred revenue, converted into United States dollars at   
 the actual exchange rate in effect at the end of the prior period).        
                                                                            
                                                                            
                                                                            
                            SYMANTEC CORPORATION                            
                   Operating Margin by Segment Detail (1)                   
                                (Unaudited)                                 
                                                                            
                                                    Three Months Ended      
                                               ---------------------------- 
                                               September 28,  September 30, 
                                                    2012           2011     
                                               -------------  ------------- 
GAAP Operating Margin by Segment                                            
  Consumer                                                50%            48%
  Security and Compliance                                 30%            21%
  Storage and Server Management                           40%            42%
  Services                                                19%            16%
                                               -------------  ------------- 
(1) Excluded from this table is our Other segment which is comprised of     
 sunset products nearing the end of their life cycle. The Other segment     
 al
so includes certain general and administrative expenses; amortization of 
 intangible assets; stock-based compensation expense, restructuring and     
 transition expenses; and certain indirect costs that are not charged to    
 the other operating segments.                                              
                                                                            
                                                                            
                                                                            
                            SYMANTEC CORPORATION                            
     Guidance and Reconciliation of GAAP to Non-GAAP Earnings Per Share     
               (In billions, except per share data, unaudited)              
                                                                            
We include certain non-GAAP measures in the tracking and forecasting of our 
 earnings and management of our business. For a detailed explanation of     
 these non-GAAP measures, please see our Explanation of Non-GAAP Measures in
 Appendix A.                                                                
                                                                            
Revenue Guidance                    Three Month Ending December 28, 2012    
                                --------------------------------------------
                                                  Year-Over-Year Growth Rate
                                                 ---------------------------
                                                                  Constant  
                                      Range          Actual     Currency (1)
                                ---------------- ------------- -------------
                                                                            
GAAP revenue range                $1.72 - $1.75     0% - 2%       1% - 3%   
                                ---------------- ------------- -------------
                                                                            
                                    Three Month Ending December 28, 2012    
                                --------------------------------------------
                                                  Year-Over-Year Growth Rate
                                                 ---------------------------
Earnings Per Share Guidance and                                             
Reconciliation                        Range                 Actual          
                                ---------------- ---------------------------
                                                                            
GAAP diluted earnings per share                                             
 range                            $0.17 - $0.19         (41)% - (47)%       
  Add back:                                                                 
  Stock-based compensation, net                                             
   of tax                             $0.04                                 
  Amortization of intangible                                                
   assets and non-cash interest                                             
   expense, net of tax                $0.15                                 
                                ---------------- ---------------------------
Non-GAAP diluted earnings per                                               
 share range                      $0.36 - $0.38         (10)% - (14)%       
                                ---------------- ---------------------------
                                                                            
                                    Three Month Ending December 28, 2012    
                                --------------------------------------------
                                                  Year-Over-Year Growth Rate
                                                 ---------------------------
                                                                  Constant  
Deferred Revenue Guidance             Range          Actual     Currency (1)
                                ---------------- ------------- -------------
                                                                            
GAAP deferred revenue range      $3.765 - $3.825    3% - 4%       3% - 4%   
                                ---------------- ------------- -------------
                                                                            
                                                                            
(1) Management refers to growth rates adjusting for currency so that the    
 business results can be viewed without the impact of fluctuations in       
 foreign currency exchange rates. We compare the percentage change in the   
 results from one period to another period in order to provide a framework  
 for assessing how our underlying businesses performed. To exclude the      
 effects of foreign currency rate fluctuations, current and comparative     
 prior period results for entities reporting in currencies other than United
 States dollars are converted into United States dollars at the actual      
 exchange rates in effect during the respective prior periods (or, in the   
 case of deferred revenue, converted into United States dollars at the      
 actual exchange rate in effect at the end of the prior period).            
                                                                            
                                                                            
                                                                            
                            SYMANTEC CORPORATION                            
                      Explanation of Non-GAAP Measures                      
                                 Appendix A                                 
                                                                            
The non-GAAP financial measures included in the tables adjust for the       
following items: business combination accounting entries, stock-based       
compensation expense, restructuring and transition charges, charges related 
to the amortization of intangible assets, impairments of assets and certain 
other items. We believe the presentation of these non-GAAP financial        
measures, when taken together with the corresponding GAAP financial         
measures, provides meaningful supplemental information regarding the        
Company's operating performance for the reasons discussed below. Our        
management uses these non-GAAP financial measures in assessing the Company's
operating results, as well as when planning, forecasting and analyzing      
future periods. We believe that these non-GAAP financial measures also      
facilitate comparisons of the Company's performance to prior periods and to 
our peers and that investors benefit from an understanding of these non-GAAP
financial measures.                                                         
                                                                            
Stock-based compensation: Consists of expenses for employee stock options,  
restricted stock units, restricted stock awards, performance based awards   
and our employee stock purchase plan determined in accordance with the      
authoritative guidance on stock-based compensation. When evaluating the     
performance of our individual business units and developing short and long  
term plans, we do not consider stock-based compensation charges. Our        
management team is held accountable for cash-based compensation, but we     
believe that management is limited in its ability to project the impact of  
stock-based compensation and accordingly is not held accountable for its    
impact on our operating results. Although stock-based compensation is       
necessary to attract and retain quality employees, our consideration of     
stock-based compensation places its primary emphasis on overall shareholder 
dilution rather than the accounting charges associated with such grants. In 
addition, for comparability purposes, we believe it is useful to provide a  
non-GAAP financial measure that excludes stock-based compensation in order  
to better understand the long-term performance of our core business and to  
facilitate the comparison of our results to the results of our peer         
companies. Furthermore, unlike cash-based compensation, the value of stock- 
based compensation is determined using complex formulas that incorporate    
factors, such as market volatility, that are beyond our control.            
                                                                            
                                                      Three months ended    
                                                 September 28, September 30,
                                                      2012          2011    
                                                 ------------- -------------
Cost of revenue                                  $           4 $           3
Sales and marketing                                         17            17
Research and development                                    13            12
General and administrative                                  11             6
                                                 ------------- -------------
  Total stock-based compensation                 $          45 $          38
                                                 ============= =============
                                                                            
Amortization of intangible assets: When conducting internal development of  
intangible assets, accounting rules require that we expense the costs as    
incurred. In the case of acquired businesses, however, we are required to   
allocate a portion of the purchase price to the accounting value assigned to
intangible assets acquired and amortize this amount over the estimated      
useful lives of the acquired intangible assets. The acquired company, in    
most cases, has itself previously expensed the costs incurred to develop the
acquired intangible assets, and the purchase price allocated to these assets
is not necessarily reflective of the cost we would incur in developing the  
intangible asset. We eliminate these amortization charges from our non-GAAP 
operating results to provide better comparability of pre- and post-         
acquisition operating results and comparability to results of businesses    
utilizing internally developed intangible assets.                           
                                                                            
Restructuring and transition: We have engaged in various restructuring and  
transition activities over the past several years that have resulted in     
costs associated with severance, facilities costs, and transition and other 
related costs. Transition and other related costs consist of severance costs
associated with acquisition integrations in efforts to streamline our       
business operations, consulting charges associated with the implementation  
of a new Enterprise Resource Planning system, and costs related to the      
outsourcing of certain back office functions. Each restructuring and        
transition activity has been a discrete event based on a unique set of      
business objectives or circumstances, and each has differed from the others 
in terms of its operational implementation, business impact and scope. We do
not engage in restructuring or transition activities in the ordinary course 
of business. While our operations previously benefited from the employees   
and facilities covered by our various restructuring charges, these employees
and facilities have benefited different parts of our business in different  
ways, and the amount of these charges has varied significantly from period  
to period. We believe that it is important to understand these charges and, 
we believe that investors benefit from excluding these charges from our     
operating results to facilitate a more meaningful evaluation of current     
operating performance and comparisons to past operating performance.        
                                                                            
Acquisition-related expenses: The authoritative guidance on business        
combinations requires us to record in the statement of income, certain items
that at the time of an acquisition would have been recorded to goodwill     
under the old authoritative guidance. We have excluded the effect of        
acquisition-related expenses from our non-GAAP operating expenses and net   
income measures. We incurred expenses in connection with our acquisitions,  
which we generally would not have otherwise incurred in the periods         
presented as a part of our continuing operations. Acquisition-related       
expenses consist of professional service expenses. We believe it is useful  
for investors to understand the effects of these items on our operations.   
Although acquisition-related expenses generally diminish over time with     
respect to past acquisitions, we generally will incur these expenses in     
connection with any future acquisitions.                                    
                                                                            
Non-cash interest expense: Effective April 4, 2009, we adopted authoritative
guidance on convertible debt instruments, which changed the method of       
accounting for our convertible notes. Under this authoritative guidance, our
EPS and net income calculated in accordance with GAAP have been reduced as a
result of recognizing incremental non-cash interest expense. We believe it  
is useful to provide a non-GAAP financial measure that excludes this        
incremental non-cash interest expense in order to better understand the     
long-term performance of our core business and to facilitate the comparison 
of our results to the results of our peer companies.                        
                                                                            
Loss on sale of marketable securities: This constitutes the loss from the   
sale of the Company's available-for-sale securities. The Company's          
management excludes this loss when evaluating its ongoing performance and   
therefore excludes this loss when presenting non-GAAP financial measures.   
                                                                            
Joint venture: As noted above, we exclude amortization of intangible assets 
related to the joint venture from our non-GAAP net income.                  
                                                                            
Release of pre-acquisition tax contingencies: During the September 2012     
quarter, certain tax accruals related to pre-acquisition contingencies were 
effectively settled. As a result, we realized benefits to GAAP net income of
$12 million and non-GAAP net income of $5 million.                          
                                                                            
The non-GAAP benefit was due to the reversal of accrued interest recorded in
our income statement during our post acquisition periods. Accordingly, the  
amount of this accrual has not been excluded from Symantec's non-GAAP       
results.                                                                    
                                                                            
Change in valuation allowance: Due to an election made for state income tax 
purposes, we have determined that it is not more-likely-than-not that we    
will utilize all of our state credit carryforwards based on the GAAP income 
allocated to the state. Accordingly, a valuation allowance was recorded     
against our state credit carryforwards during the three months ended        
September 28, 2012.                                                         

  
MEDIA CONTACT:
Nicole Kenyon
Symantec Corp.
415-609-3842
Nicole_kenyon@symantec.com 
INVESTOR CONTACT:
Helyn Corcos
Symantec Corp.
650-527-5523
hcorcos@symantec.com 
 
 
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