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Symantec Announces New Strategy

Symantec Announces New Strategy 
MOUNTAIN VIEW, CA -- (Marketwire) -- 01/23/13 --  Symantec Corp.
(NASDAQ: SYMC) today announced a new strategy that will streamline
and simplify the company so it can deliver significantly improved
performance for customers and partners. 
Click to Tweet: #Symantec announces new corporate strategy and
product focus areas http://bit.ly/ViCEqb 
Strategy 
"Symantec's strategy is clear: We want to enable people, businesses
and countries to focus their energies and time on achieving their
aspirations, instead of being consumed with how to keep their digital
lives safe and protected," said Steve Bennett, Symantec president and
chief executive officer. "This is a story about more focus and better
execution by Symantec to make things better and easier for our
customers and partners. Our path is straightforward: Offer better
products and services tailor made for customers, and make it easier
for them to research, shop, buy, use, and get the help and support
they need." 
Offerings 
Symantec's goal is to continue to improve its existing products and
services, and at the same time develop new, innovative products and
services that solve important unmet or underserved needs. Over time
customers will have more and better choices that will continue to
meet their evolving needs and deliver better value. Symantec is
focusing on 10 key areas that combine existing products and services
into new, innovative and comprehensive solutions that meet multiple
customer needs with integrated and higher value offerings. The
overall development process is estimated to take six to 24 months
depending on the specific offering.  
These future offerings are intended to align with meeting three key
customer needs: Making it simple to be productive and protected at
home and work; keeping businesses safe and compliant; and keeping
business information and applications up and running. As such,
Symantec is focusing on and considering the development of offerings
in the following core areas: Mobile Workforce Productivity, Norton
Protection, Norton Cloud, Information Security Services,
Identity/Content-Aware Security Gateway, Data Center Security,
Business Continuity, Integrated Backup, Cloud-Based Information
Management, and Object Storage Platform.  
"Customers will still be able 
to pick and choose the solutions they
want to use, but from a broader menu of innovative products with
higher value," Bennett said. "We're not offering packages that they
have to take it or leave it. Customers can still decide what's right
for them and buy accordingly, but have the added option of migrating
to new integrated offerings which provide added flexibility we know
they will need to combat constantly evolving threats, particularly
via mobile and the cloud." 
In order to continue delivering value to customers in the future,
Symantec will increase its investment in research and development and
homegrown innovation to better meet next generation needs. Symantec
will also establish strategic partnerships where it can integrate
what it does with others to add even more value for customers. This
will help customers stay ahead of increasingly challenging
information and protection challenges at the endpoint, network and
data center levels. 
"There is a huge set of underserved and unmet needs that customers
are experiencing with regards to protecting, moving and managing
their information on multiple devices," continued Bennett. "With our
resources and know-how, we are in a better position to meet those
needs than anyone. We have the infrastructure to deliver real value
to help customers and this new strategy will improve both our focus
and execution. We also have the expertise to know and see what
they're going to need next. It's a question of alignment and
regaining focus on the current and future needs of customers via a
renewed emphasis on innovation plus developing new technology."  
Operations and Organization 
Symantec's sales process will continue to rely heavily on the channel
to manage current customers and free up Symantec's sales force to
focus on generating new business. Symantec will also enhance the
marketing organization with more strategic resources and capability
to accelerate focus and organic growth. 
Symantec has created a new Office of the CEO. A small team of
executives (chief financial officer, president of products and
services, and chief operating officer) has been established to make
collective operational and functional decisions with Bennett on a
daily basis. Also reporting directly into the CEO are direct reports
based on function (such as HR, Finance, Legal, etc.) and the sales
geography leaders. A group of extended staff -- including the chief
officers of functions such as IT, marketing, communications, and
technology -- will be another group reporting into the CEO.  
In order to make the company more flexible and able to adapt quicker
to the needs of customers, more emphasis will be placed on giving
front-line employees greater empowerment, input and discretion in
addressing customers' needs on a day to day basis. As such, there
will be fewer executives and middle management positions, resulting
in a reduction of the workforce. This process is expected to be
completed by the end of June 2013.  
"Symantec is a strong company with leadership products, brands and
great employees," said Bennett. "Past leaders and employees of this
company have left an outstanding legacy of assets for us to build
upon as we move forward. The next step is to change things that allow
us to adapt quicker to the marketplace, and in the end, continue
Symantec's tradition and high standards for delivering tremendous
value to our employees, customers, partners and shareholders."  
Financial Implications 
As we execute on our strategy and operational plan we are committed
to deliver more than 5% organic revenue growth and non-GAAP operating
margins better than 30% over the next two to three years.  
The coming year will include significant transitions as we begin to
improve our growth capabilities, establish a dedicated renewals team,
refocus our direct field sales representatives on new business and
eliminate duplicative organization and operating structures. As such,
we expect organic revenue growth between 0% and 2% in FY14. However,
we have identified many opportunities to drive efficiencies and
redeploy resources which will remove duplication and complexity. As a
result, we expect non-GAAP operating margins to increase by
approximately 200 basis points in FY14. Our initial estimate for
severance payments of approximately $275 million will impact cash
flows in FY14. 
After FY14, organic revenue is expected to build steadily driving a
CAGR of more than 5% during the FY15-FY17 period as we execute on our
plans. We expect to increase non-GAAP operating margins by another
approximately 200 basis points in FY15. As such, we are targeting to
reach 30% non-GAAP operating margins by the end of FY15. 
Webcast 
Symantec has scheduled a Webcast from 4:30 p.m. ET/1:30 p.m. PT to
6:30 p.m. ET/3:30 p.m. PT today to discuss the Company's strategic
direction, operational plan, capital allocation strategy and
financial results, including guidance. To listen to the live event
and view the corresponding presentation, please go to
http://www.symantec.com/invest at least 15 minutes early to register,
download and install any necessary audio software. A replay of the
webcast including presentation will be available within 24 hours
after the event.  
Connect with Symantec 


 
--  
Blog Post:Symantec's New Direction
--  Follow Symantec on Twitter
--  Join Symantec on Facebook
--  View Symantec's SlideShare Channel
--  Subscribe to Symantec News RSS Feed
--  Visit Symantec Connect Business Community

  
About Symantec 
Symantec protects the world's information, and is a 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 world-renowned expertise in protecting data,
identities and interactions gives our customer's confidence in a
connected world. More information is available at www.symantec.com or
by connecting with Symantec at: go.symantec.com/socialmedia. 
FORWARD-LOOKING STATEMENTS: Any information regarding pre-release
Symantec offerings, future updates or other planned modifications is
subject to ongoing evaluation by Symantec and therefore subject to
change. This information is provided without warranty of any kind,
express or implied. Customers who purchase Symantec offerings should
make their purchase decision based upon features that are currently
available. 
This press release contains statements regarding our intention to
execute a new strategy, implement operational and organizational
changes and our projected 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 and
operating margin as well as projections of 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. 
MEDIA CONTACTS: 
Cris Paden 
Symantec Corp. 
650/527-5526 
cpaden@symantec.com 
Smita Rode 
Weber Shandwick 
415/262-9977 
srode@webershandwick.com 
INVESTOR CONTACT:
Helyn Corcos
Symantec
650/527-5523
hcorcos@symantec.com