Symantec Delivers Record Revenue in Fiscal Third Quarter 2013

Symantec Delivers Record Revenue in Fiscal Third Quarter 2013 
MOUNTAIN VIEW, CA -- (Marketwire) -- 01/23/13 --  Symantec Corp.
(NASDAQ: SYMC) today reported the results of its third quarter of
fiscal year 2013, ended Dec. 28, 2012. GAAP revenue for the fiscal
third quarter was $1.79 billion, up 4 percent year-over-year and up 5
percent after adjusting for currency. 
Click to Tweet: #SYMC posts record third quarter results:
http://bit.ly/YlGfo4 
"We continue to deliver better than expected results," said Steve
Bennett, president and chief executive officer, Symantec. "I'm so
proud of our employees. These types of results don't happen by
accident. The fact that we can deliver these results in a period of
significant transition and uncertainty is a testament to our
employees, the strength of our brand, the quality of our products and
the scope of our customer base." 
"Strength in EMEA, information management and license revenue drove
our FX adjusted organic revenue growth of 4%," said James Beer,
executive vice president and chief financial officer, Symantec. "Our
better than expected top line growth coupled with disciplined expense
management drove non-GAAP operating margins of 25.6% even as we are
investing in certain areas to better serve our customer needs."  
GAAP Results for third quarter of fiscal year 2013  


 
--  GAAP operating margin was 16.6 percent compared with 17.5 percent for
    the same quarter last year, down 90 basis points year-over-year.
--  GAAP net income was $212 million compared with net income of $240
    million for the year-ago period, down 12 percent year-over-year.
--  GAAP diluted earnings per share were $0.30 compared with $0.32 for the
    year ago quarter, down 6 percent year-over-year.
--  GAAP deferred revenue was $3.806 billion compared with $3.665 billion
    for the year ago quarter, up 4 percent year-over-year on an actual and
    currency-adjusted basis.
--  Cash flow from operating activities was $463 million compared with
    $403 million for the year ago period, up 15 percent year-over-year.
--  Symantec ended the quarter with cash, cash equivalents and short-term
    investments of $4.25 billion. During the quarter, Symantec repurchased
    11 million shares for $200 million at an average price of $17.94.
    Symantec has $283 million remaining in the current board authorized
    stock repurchase plan.

  
Non-GAAP Results for third quarter of fiscal year 2013  


 
--  Non-GAAP operating margin was 25.6 percent compared with 26.2 percent
    for the same quarter last year, down 60 basis points year-over-year
    and down 80 basis points after adjusting for currency, due to
    increased investment in certain areas to better serve our customer
    needs.
--  Non-GAAP net income was $313 million compared to $314 million for the
    same quarter last year.
--  Non-GAAP diluted earnings per share were $0.45 compared with earnings
    per share of $0.42 for the year-ago quarter, up 7 percent
    year-over-year.

  
Business Segment Highlights for the Quarter 


 
--  The Consumer segment represented 30 percent of total revenue and
    increased 1 percent year-over-year (increased 2 percent after
    adjusting for currency).
--  The Security and Compliance segment represented 29 percent of total
    revenue and increased 3 percent year-over-year (increased 4 percent
    after adjusting for currency).
--  The Storage and Server Management segment represented 37 percent of
    total revenue and increased 8 percent year-over-year (increased 9
    percent after adjusting for currency).
--  Services represented 4 percent of total revenue and increased 10
    percent year-over-year (increased 9 percent after adjusting for
    currency).

  
Geographic Highlights for the Quarter 


 
--  International revenue represented 52 percent of total revenue and
    increased 6 percent year-over-year (increased 8 percent after
    adjusting for currency).
--  The Europe, Middle East and Africa region represented 28 percent of
    total revenue and increased 6 percent year-over-year (increased 10
    percent after adjusting for currency).
--  Asia Pacific/Japan revenue represented 19 percent of total revenue and
    increased 7 percent year-over-year (increased 6 percent after
    adjusting for currency).
--  The Americas, including the United States, Latin America and Canada,
    represented 53 percent of total revenue and increased 3 percent
    year-over-year on an actual and currency-adjusted basis.

  
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.  
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 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. 
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)                               
                                                                            
                                                  December 28,   March 30,  
                                                      2012        2012 (1)  
                                                 ------------- -------------
                                                         (Unaudited)            
   
                                                                                
                                             
ASSETS                                                                      
                                                                            
Current assets:                                                             
  Cash and cash equivalents                      $       4,200 $       3,162
  Short-term investments                                    52            49
  Trade accounts receivable, net                         1,081           940
  Inventories                                               20            28
  Deferred income taxes                                    193           205
  Other current assets                                     270           249
                                                 ------------- -------------
    Total current assets                                 5,816         4,633
                                                 ------------- -------------
                                                                            
Property and equipment, net                              1,130         1,100
Intangible assets, net                                   1,065         1,337
Goodwill                                                 5,843         5,826
Other long-term assets                                     108           124
                                                 ------------- -------------
    Total assets                                 $      13,962 $      13,020
                                                 ============= =============
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                                                            
Current liabilities:                                                        
  Accounts payable                               $         317 $         324
  Accrued compensation and benefits                        454           416
  Deferred revenue                                       3,298         3,444
  Current portion of long-term debt                        982             -
  Other current liabilities                                431           321
                                                 ------------- -------------
    Total current liabilities                            5,482         4,505
                                                 ------------- -------------
                                                                            
Long-term debt                                           2,094         2,039
Long-term deferred revenue                                 508           529
Long-term deferred tax liabilities                         321           288
Long-term income taxes payable                             341           393
Other long-term obligations                                 60            94
                                                 ------------- -------------
    Total liabilities                                    8,806         7,848
                                                 ------------- -------------
                                                                            
                                                 ------------- -------------
    Total Symantec Corporation stockholders'                                
     equity                                              5,156         5,094
                                                 ------------- -------------
                                                                            
Noncontrolling interest in subsidiary                        -            78
                                                 ------------- -------------
  Total stockholders' equity                             5,156         5,172
                                                 ------------- -------------
    Total liabilities and stockholders' equity   $      13,962 $      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       
                       --------------------------  ------------------------ 
                       December 28,  December 30,                 Constant  
                           2012          2011         Actual    Currency(1) 
                       ------------  ------------  -----------  ----------- 
                                                                            
Net revenue:                                                                
  Content,                                                                  
   subscription, and                                                        
   maintenance         $      1,521  $      1,462            4%           5%
  License                       270           253            7%           8%
                       ------------  ------------  -----------  ----------- 
    Total net revenue         1,791         1,715            4%           5%
                       ------------  ------------  -----------  ----------- 
                                                                            
Cost of revenue:                                                            
  Content,                                                                  
   subscription, and                                                        
   maintenance                  256           233                           
  License                        27            16                           
  Amortization of                                                           
   intangible assets             16            22                           
                       ------------  ------------  -----------  ----------- 
    Total cost of                                                           
     revenue                    299           271           10%          11%
                       ------------  ------------  -----------  ----------- 
Gross profit                  1,492         1,444            3%           4%
                       ------------  ------------  -----------  ----------- 
                                                                            
Operating expenses:                                                         
  Sales and marketing           730           711                           
  Research and                                                              
   development                  249           242                           
  General and                                                               
   administrative               117           113                           
  Amortization of                                                           
   intangible assets             71            73                           
  Restructuring and                                                         
   transition                    27             5                           
                       ------------  ------------  -----------  ----------- 
    Total operating                                                         
     expenses                 1,194         1,144            4%           5%
                       ------------  ------------  -----------  ----------- 
Operating income                298           300           -1%           0%
                       ------------  ------------  -----------  ----------- 
                                                                            
  Interest income                 4             2                           
  Interest expense              (38)          (27)                          
  Other income                                                              
   (expense), net                20            (2)                          
                       ------------  ------------  -----------  ----------- 
Income before income                                                        
 taxes                          284           273            4%         N/A 
                       ------------  ------------  -----------  ----------- 
                                                                            
  Provision for income                                                      
   taxes                         72            32                           
                       ------------  ------------  -----------  ----------- 
Net income                      212           241          -12%         N/A 
  Less: Loss                                                                
   attributable to                                                          
   noncontrolling                                                           
   interest                       -             1                           
                       ------------  ------------  -----------  ----------- 
Net income                                                                  
 attributable to                                                            
 Symantec Corporation                                                       
 stockholders          $        212  $        240          -12%         N/A 
                       ============  ============  ===========  =========== 
                                                                            
Net income per share                                                        
 attributable to                                                            
 Symantec Corporation                                                       
 stockholders -- basic $       0.31  $       0.33                           
Net income per share                                                        
 attributable to                                                            
 Symantec Corporation                                                       
 stockholders --                                                            
 diluted               $       0.30  $       0.32                           
Weighted-average                                                            
 shares outstanding                                                         
 attributable to                                                            
 Symantec Corporation                                                       
 stockholders -- basic          693           734                           
Weighted-average                                                            
 shares outstanding                                                         
 attributable to                                                            
 Symantec Corporation                                    
                   
 stockholders --                                                            
 diluted                        702           740                           
                                                                            
(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      
                            Nine Months Ended             Growth Rate       
                       --------------------------  ------------------------ 
                       December 28,  December 30,                 Constant  
                           2012          2011         Actual    Currency(1) 
                       ------------  ------------  -----------  ----------- 
                                                                            
Net revenue:                                                                
  Content,                                                                  
   subscription, and                                                        
   maintenance         $      4,494  $      4,353            3%           6%
  License                       664           696           -5%          -2%
                       ------------  ------------  -----------  ----------- 
    Total net revenue         5,158         5,049            2%           5%
                       ------------  ------------  -----------  ----------- 
                                                                            
Cost of revenue:                                                            
  Content,                                                                  
   subscription, and                                                        
   mainte
nance                  752           695                           
  License                        62            33                           
  Amortization of                                                           
   intangible assets             53            67                           
                       ------------  ------------  -----------  ----------- 
    Total cost of                                                           
     revenue                    867           795            9%          10%
                       ------------  ------------  -----------  ----------- 
Gross profit                  4,291         4,254            1%           4%
                       ------------  ------------  -----------  ----------- 
                                                                            
Operating expenses:                                                         
  Sales and marketing         2,038         2,073                           
  Research and                                                              
   development                  745           728                           
  General and                                                               
   administrative               336           324                           
  Amortization of                                                           
   intangible assets            215           217                           
  Restructuring and                                                         
   transition                    85            25                           
                       ------------  ------------  -----------  ----------- 
    Total operating                                                         
     expenses                 3,419         3,367            2%           4%
                       ------------  ------------  -----------  ----------- 
Operating income                872           887           -2%           3%
                       ------------  ------------  -----------  ----------- 
                                                                            
  Interest income                 9            10                           
  Interest expense             (102)          (87)                          
  Other income                                                              
   (expense), net                15            (4)                          
  Loss from joint                                                           
   venture                        -           (27)                          
                       ------------  ------------  -----------  ----------- 
Income before income                                                        
 taxes                          794           779            2%         N/A 
                       ------------  ------------  -----------  ----------- 
                                                                            
  Provision for income                                                      
   taxes                        217           166                           
                       ------------  ------------  -----------  ----------- 
Net income                      577           613           -6%         N/A 
  Less: Loss                                                                
   attributable to                                                          
   noncontrolling                                                           
   interest                       -             -                           
                       ------------  ------------  -----------  ----------- 
Net income                                                                  
 attributable to                                                            
 Symantec Corporation                                                       
 stockholders          $        577  $        613           -6%         N/A 
                       ============  ============  ===========  =========== 
                                                                            
Net income per share                                                        
 attributable to                                               
             
 Symantec Corporation                                                       
 stockholders -- basic $       0.82  $       0.82                           
Net income per share                                                        
 attributable to                                                            
 Symantec Corporation                                                       
 stockholders --                                                            
 diluted               $       0.81  $       0.82                           
Weighted-average                                                            
 shares outstanding                                                         
 attributable to                                                            
 Symantec Corporation                                                       
 stockholders -- basic          704           745                           
Weighted-average                                                            
 shares outstanding                                                         
 attributable to                                                            
 Symantec Corporation                                                       
 stockholders --                                                            
 diluted                        710           752                           
                                                                            
(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)                          
                                                                            
                                                    Nine Months Ended       
                                             ------------------------------ 
                                              December 28,    December 30,  
                                                  2012            2011      
                                             --------------  -------------- 
                                                                            
OPERATING ACTIVITIES:                                                       
Net income                                   $          577  $          613 
                                                                            
Adjustments to reconcile net income to net                                  
 cash provided by operating activities:                                     
  Depreciation                                          213             200 
  Amortization of intangible assets                     268             284 
  Amortization of debt issuance costs and                                   
   discounts                                             44              46 
  Stock-based compensation expense                      125             123 
  Deferred income taxes                                  26              38 
  Excess income tax benefit from the                                        
   exercise of stock options                             (2)             (6)
  Loss from joint venture          
                       -              27 
  Other                                                  (3)              4 
  Net change in assets and liabilities,                                     
   excluding effects of acquisitions:                                       
    Trade accounts receivable, net                     (144)             12 
    Inventories                                           9              (3)
    Accounts payable                                     (8)              9 
    Accrued compensation and benefits                    40             (49)
    Deferred revenue                                   (150)           (108)
    Income taxes payable                                 39               3 
    Other assets                                        (45)             (9)
    Other liabilities                                    (8)             30 
                                             --------------  -------------- 
      Net cash provided by operating                                        
       activities                                       981           1,214 
                                             --------------  -------------- 
                                                                            
INVESTING ACTIVITIES:                                                       
  Purchases of property and equipment                  (245)           (199)
  Cash payments for acquisitions, net of                                    
   cash acquired                                        (28)           (364)
  Purchases of held-to-maturity securities                -             (47)
  Proceeds from sale of held-to-maturity                                    
   securities                                            46               - 
  Other                                                   3              (1)
                                             --------------  -------------- 
      Net cash used in investing activities            (224)           (611)
                                             --------------  -------------- 
                                                                            
FINANCING ACTIVITIES:                                                       
  Net proceeds from sales of common stock                                   
   under employee stock benefit plans                   100              95 
  Excess income tax benefit from the                                        
   exercise of stock options                              2               6 
  Tax payments related to restricted stock                                  
   issuance                                             (14)            (22)
  Repurchases of common stock                          (701)           (693)
  Purchase of additional interest in                                        
   subsidiary                                           (92)              - 
  Repayments of debt and other obligations                -            (602)
  Proceeds from debt issuance, net of                                       
   discount                                             996               - 
  Debt issuance costs                                    (7)              - 
                                             --------------  -------------- 
      Net cash provided by (used in)                                        
       financing activities                             284          (1,216)
                                             --------------  -------------- 
                                                                            
Effect of exchange rate fluctuations on cash                                
 and cash equivalents                                    (3)            (10)
                                             --------------  -------------- 
Change in cash and cash equivalents                   1,038            (623)
Beginning cash and cash equivalents                   3,162           2,950 
                                             --------------  -------------- 
Ending cash and cash equivalents             $        4,200  $        2,327 
                                             ==============  ============== 
                                                                            
                                                                            
                                                                            
                       SYMANTEC CORPORATION                        
Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1)  
         (In millions, except per share data, unaudited)           
                                                                            
                                           Three Months Ended               
                             ---------------------------------------------- 
                                December 28, 2012       December 30, 2011   
                             ----------------------  ---------------------- 
                                              Non-                    Non-  
                              GAAP     Adj    GAAP    GAAP     Adj    GAAP  
                             ------  ------  ------  ------  ------  ------ 
                                                                            
Net revenue:                 $1,791     N/A  $1,791  $1,715     N/A  $1,715 
                             ------  ------  ------  ------  ------  ------ 
                                                                            
Gross profit:                $1,492  $   20  $1,512  $1,444  $   26  $1,470 
  Stock-based compensation                4                       4         
  Amortization of intangible                                                
   assets                                16                      22         
                             ------  ------  ------  ------  ------  ------ 
                                                                            
Gross margin %                 83.3%           84.4%   84.2%           85.7%
                             ------  ------  ------  ------  ------  ------ 
                                                                            
Operating expenses:          $1,194  $  140  $1,054  $1,144  $  123  $1,021 
  Stock-based compensation               38                      42         
  Amortization of intangible                                                
   assets                                71                      73         
  Restructuring and                                                         
   transition                            27                       5         
  Acquisition/divestiture-                                                  
   related expenses                       4                       3         
                             ------  ------  ------  ------  ---
---  ------ 
                                                                            
Operating expenses as a % of                                                
 revenue                       66.7%           58.8%   66.7%           59.5%
                             ------  ------  ------  ------  ------  ------ 
                                                                            
Operating income             $  298  $  160  $  458  $  300  $  149  $  449 
                             ------  ------  ------  ------  ------  ------ 
                                                                            
Operating margin %             16.6%           25.6%   17.5%           26.2%
                             ------  ------  ------  ------  ------  ------ 
                                                                            
Net income:                  $  212  $  101  $  313  $  240  $   74  $  314 
  Gross profit adjustment                20                      26         
  Operating expense                                                         
   adjustment                           140                     123         
  Non-cash interest expense              15                      12         
  China VAT refund                      (24)                      -         
  Income tax effect on above                                                
   items                                (44)                    (45)        
  Tax related adjustments:                                                  
    Release of pre-                                                         
     acquisition tax                                                        
     contingencies                       (6)                    (42)        
                             ------  ------  ------  ------  ------  ------ 
                                                                            
Diluted net income per share                                                
 attributable to Symantec                                                   
 Corporation stockholders    $ 0.30  $ 0.15  $ 0.45  $ 0.32  $ 0.10  $ 0.42 
                             ------  ------  ------  ------  ------  ------ 
                                                                            
Diluted weighted-average                                                    
 shares outstanding                                                         
 attributable to Symantec                                                   
 Corporation stockholders       702             702     740             740 
 
                                                  
                                Year-Over-Year    
                             Non-GAAP Growth Rate 
                             -------------------- 
                                        Constant  
                              Actual  Currency(2) 
                             -------  ----------- 
                                                  
Net revenue:                       4%           5%
                             -------  ----------- 
                                                  
Gross profit:                      3%           4%
  Stock-based compensation                        
  Amortization of intangible                      
   assets                                         
                             -------  ----------- 
                                                  
Gross margin %                  -130              
                                 bps     -110 bps 
                             -------  ----------- 
                                                  
Operating expenses:                3%           4%
  Stock-based compensation                        
  Amortization of intangible                      
   assets                                         
  Restructuring and                               
   transition                                     
  Acquisition/divestiture-                        
   related expenses                               
                             -------  ----------- 
                                                  
Operating expenses as a % of                      
 revenue                     -70 bps      -40 bps 
                             -------  ----------- 
                                                  
Operating income                   2%           2%
                             -------  ----------- 
                                                  
Operating margin %           -60 bps      -80 bps 
                             -------  ----------- 
                                                  
Net income:                        0%         N/A 
  Gross profit adjustment                         
  Operating expense                               
   adjustment                                     
  Non-cash interest expense                       
  China VAT refund                                
  Income tax effect on above                      
   items                                          
  Tax related adjustments:                        
    Release of pre-                               
     acquisition tax                              
     contingencies                                
                             -------  ----------- 
                                                  
Diluted net income per share                      
 attributable to Symantec                         
 Corporation stockholders          7%         N/A 
                             -------  ----------- 
                                                  
Diluted weighted-average                          
 shares outstanding                               
 attributable to Symantec                         
 Corporation stockholders         -5%         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      
                                               ---------------------------- 
                                                December 28,   December 30, 
                                                    2012           2011     
                                               -------------  ------------- 
GAAP Revenue                                                                
                                               -------------  ------------- 
  Content, subscription, and maintenance       $       1,521  $       1,462 
  License                                                270            253 
                                               -------------  ------------- 
Total Revenue                                  $       1,791  $       1,715 
                                               -------------  ------------- 
GAAP Revenue Y/Y Growth Rate                                                
                                               -------------  ------------- 
  Content, subscription, and maintenance                   4%             8%
  License                                                  7%            -1%
                                               -------------  ------------- 
Total Y/Y Growth Rate                                      4%             7%
                                               -------------  ------------- 
GAAP Revenue Y/Y Growth Rate in Constant                                    
 Currency                                                                   
                                               -------------  ------------- 
  Content, subscription, and maintenance                   5%             8%
  License                                                  8%            -1%
                                               -------------  ------------- 
Total Y/Y Growth Rate in Constant Currency                 5%             6%
                                                                            
GAAP Revenue by Segment (2)                                                 
                                               -------------  ------------- 
  Consumer                                     $         530  $         525 
  Security and Compliance                                527            510 
  Storage and Server Management                          666            618 
  Services                                                68             62 
                                               -------------  ------------- 
GAAP Revenue by Segment: Y/Y Growth Rate                                    
                                               -------------  ------------- 
  Consumer                                                 1%             5%
  Security and Compliance                                  3%            17%
  Storage and Server Management                            8%             3%
  Services                                                10%           -13%
                                               -------------  ------------- 
GAAP Revenue by Segment: Y/Y Growth Rate in                                 
 Constant Currency                                                          
                                               -------------  ------------- 
  Consumer                                                 2%             5%
  Security and Compliance                                  4%            17%
  Storage and Server Management                            9%             3%
  Services                                                 9%           -12%
                                               -------------  ------------- 
                                                                            
GAAP Revenue by Geography                                                   
                                               -------------  ------------- 
  International                                $         940  $         888 
  US                                                     851            827 
    Americas (U.S., Latin America, Canada)               956            932 
    EMEA                                                 498            468 
    Asia Pacific & Japan                                 337            315 
                                               -------------  ------------- 
GAAP Revenue by Geography: Y/Y Growth Rate                                  
                                               -------------  ------------- 
  International                                            6%             6%
  US                                                       3%             8%
    Americas (U.S., Latin America, Canada)                 3%             8%
    EMEA                                                   6%            -1%
    Asia Pacific & Japan                                   7%            16%
                                               -------------  ------------- 
GAAP Revenue by Geography: Y/Y Growth Rate in                               
 Constant Currency                                                          
                                               -------------  ------------- 
  International                                            8%             5%
  US                                                       3%             8%
    Americas (U.S., Latin America, Canada)                 3%             8%
    EMEA                                                  10%             0%
    Asia Pacific & Japan                                   6%            12%
                                               -------------  ------------- 
                                                                            
                                               -------------  ------------- 
GAAP Deferred Revenue                          $       3,806  $       3,665 
                                               -------------  ------------- 
GAAP Deferred Revenue Y/Y Growth Rate                      4%             8%
                                               -------------  ------------- 
GAAP Deferred Revenue Y/Y Growth Rate in                                    
 Constant Currency                                         4%             8%
                                               -------------  ------------- 
                                                                            
(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).        
                                                                            
(2) Excluded from this table is our Other segment which is comprised of     
 sunset products nearing the end of their life cycle. The Other segment     
 also 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                            
                   Operating Margin by Segment Detail (1)                   
                                (Unaudited)                                 
                                                                            
                                                                            
                                                Three Months Ended          
                                       ------------------------------------ 
                                       December 28, 2012  December 30, 2011 
                                       -----------------  ----------------- 
GAAP Operating Margin by Segment                        
                    
  Consumer                                            43%                48%
  Security and Compliance                             33%                27%
  Storage and Server Management                       39%                39%
  Services                                            18%                18%
                                                                            
(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     
 also 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                            
                      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   
                                            December 28, December 30,
                                                2012         2011    
                                            ------------ ------------
      Cost of revenue                       $          4 $          4
      Sales and marketing                             18           20
      Research and development                        13           13
      General and administrative                       7            9
                                            ------------ ------------
        Total stock-based compensation      $         42 $         46
                                            ============ ============

 
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/divestiture-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/divestiture-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/divestiture-related expenses
generally diminish over time with respect to past transactions, we
generally will incur these expenses in connection with any future
transactions. 
Non-cash interest expense: Eff
ective 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.  
China VAT refund: During the December 2012 quarter, we received a tax
incentive from the China tax bureau in the form of value-added tax
("VAT") refunds. The tax incentive is provided to software companies
that perform research and development activities with respect to
software in China. The refunds relate to VAT collected on qualifying
software product sales during the periods from January 2011 through
December 2012. This tax incentive plan was updated late in 2011 and
it enabled companies to retrospectively apply the incentive back to
January 2011. To maintain comparability of results across periods, we
have excluded from our non-GAAP financial measures the portion of the
refund representing periods ended prior to the December 2012 quarter. 
Release of pre-acquisition tax contingencies: On December 2, 2009, we
received a Revenue Agent's Report from the IRS for the VERITAS 2002
through 2005 tax years assessing additional taxes due. We contested
$80 million of tax assessed and all penalties. As a result of
negotiations with the IRS Appeals in the December 2011 quarter, we
remeasured certain tax accruals related to this matter. Accordingly,
we realized a benefit to GAAP net income of $52 million and a
non-GAAP benefit of $10 million. The non-GAAP benefit was due to the
reversal of accrued interest attributed to the VERITAS tax assessment
that was recorded to our income statement during post-acquisition
periods. Accordingly, the amount of these accruals has not been
excluded from Symantec's non-GAAP results. In the quarter ended
December 2012, we executed the final closing agreement for the
VERITAS 2002 through 2005 tax years and recorded a further benefit to
GAAP net income of $3 million and a non-GAAP expense $2 million,
based on the closing agreement, as well as a GAAP benefit of $2
million for the adjustment of other pre-acquisition tax accruals. The
non-GAAP expense was due to the additional accrual of post
acquisition related interest. 
MEDIA CONTACTS: 
Cris Paden
Symantec Corp.
650-527-5526
cpaden@symantec.com  
Smita Rode
WeberShandwick
415-262-5977
rode@webershandwick.com  
INVESTOR CONTACT:
Helyn Corcos
Symantec Corp.
650-527-5523
hcorcos@symantec.com 
 
 
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