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Symantec Reports Record Revenue and Double Digit Non-GAAP EPS Growth


Symantec Reports Record Revenue and Double Digit Non-GAAP EPS Growth

MOUNTAIN VIEW, CA -- (Marketwired) -- 05/07/13 -- Symantec Corp. (NASDAQ: SYMC)

Highlights:


 
--  Initiating cash dividend of $0.15 per share equivalent to a 2.5%
    dividend yield
--  Organic revenue growth in constant currency of 4% in Q4 and 3% in FY13
--  Expansion of constant currency non-GAAP operating margin of 140 basis
    points in Q4 and 60 basis points in FY13
--  FY13 content, maintenance, and subscription revenue growth of 5% in
    constant currency

Symantec Corp. (NASDAQ: SYMC) today reported the results of its fourth quarter and fiscal year 2013, ended March 29, 2013. GAAP revenue for the fiscal fourth quarter was $1.748 billion, up 4 percent year-over-year and up 5 percent after adjusting for currency. For the fiscal year, GAAP revenue was $6.906 billion, up 3 percent year-over-year and up 5 percent after adjusting for currency.

Click to Tweet: #SYMC posts record Q4 and FY revenue results: http://bit.ly/15nn9lo

"In a year of significant leadership changes and development of a new company strategy, the team remained focused on running the business to deliver better than expected results," said Steve Bennett, president and chief executive officer, Symantec. "Our focus on operational change and repositioning the business in fiscal year 2014 will set the foundation to drive better execution long-term. Never have I been more optimistic about the opportunity in front of us to make a difference for our employees, customers and shareholders."

"We achieved better than expected March quarter results driven by double digit growth in our backup business and continued strength in data loss prevention and our other information security products," said James Beer, executive vice president and chief financial officer, Symantec. "For the fiscal year 2013, we generated record revenue and deferred revenue, expanded non-GAAP operating margins by 60 basis points after adjusting for currency, and delivered double-digit non-GAAP earnings per share growth based on the success of our backup and information security businesses."

GAAP Results for the Fourth Quarter of Fiscal Year 2013


 
--  GAAP operating margin was 14.4 percent compared with 11.4 percent for
    the same quarter last year.
--  GAAP net income was $188 million compared with net income of $559
    million for the year-ago period.
--  GAAP diluted earnings per share were $0.26 compared with $0.76 for the
    year ago quarter.
--  GAAP deferred revenue as of March 29, 2013, was $4.017 billion
    compared with $3.973 billion as of March 30, 2012, up 1 percent
    year-over-year and up 3 percent after adjusting for currency.
--  Cash flow from operating activities was $612 million compared with
    $687 million for the year ago period.

GAAP Results for Fiscal Year 2013


 
--  GAAP operating margin was 16.3 percent compared with 16.0 percent for
    fiscal year 2012.
--  GAAP net income for the fiscal year 2013 was $765 million compared
    with $1.172 billion for fiscal year 2012.
--  GAAP diluted earnings per share for the year were $1.08 compared with
    $1.57 for fiscal year 2012.
--  Cash flow from operating activities was $1.593 billion compared with
    $1.901 billion for fiscal year 2012. Capital expenditures totalled
    $336 million resulting in free cash flow of $1.26 billion for the
    fiscal year.

The year-over-year change in our GAAP results was as expected and was driven by the completion of the sale of the Huawei Joint Venture in fiscal year 2012.

Non-GAAP Results for the Fourth Quarter of Fiscal Year 2013


 
--  Non-GAAP operating margin was 23.9 percent compared with 22.2 percent
    for the same quarter last year.
--  Non-GAAP net income was $314 million, compared to $283 million for the
    year-ago period, an increase of 11 percent year-over-year.
--  Non-GAAP diluted earnings per share were $0.44 compared with $0.38 for
    the year-ago quarter, an increase of 16 percent year-over-year.

Non-GAAP Results for the Fiscal Year 2013


 
--  Non-GAAP operating margin was 25.7 percent, compared with 25.2 percent
    for fiscal year 2012.
--  Non-GAAP net income for the year was $1.258 billion, compared with
    $1.201 billion for fiscal year 2012, an increase of 5 percent.
--  Non-GAAP diluted earnings per share were $1.77, compared with $1.61
    for the year-ago period, an increase of 10 percent.

Business Segment and Geographic Highlights for the Quarter


 
--  The Consumer segment represented 30 percent of total revenue and
    increased 1 percent year-over-year (3 percent after adjusting for
    currency).
--  The Security and Compliance segment represented 30 percent of total
    revenue and increased 2 percent year-over-year (4 percent after
    adjusting for currency).
--  The Storage and Server Management segment represented 36 percent of
    total revenue and increased 7 percent year-over-year on an actual and
    currency-adjusted basis.
--  Services represented 4 percent of total revenue and increased 9
    percent year-over-year (10 percent after adjusting for currency).
--  International revenue represented 51 percent of total revenue and
    increased 2 percent year-over-year (4 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 (5 percent after
    adjusting for currency).
--  The Asia Pacific/Japan revenue represented 18 percent of total revenue
    and decreased 4 percent year-over-year (increased 1 percent after
    adjusting for currency).
--  The Americas, including the United States, Latin America and Canada,
    represented 54 percent of total revenue and increased 6 percent
    year-over-year on an actual and currency-adjusted basis.

Capital Allocation

Symantec ended the quarter and fiscal year with cash, cash equivalents and short-term investments of $4.75 billion (including $1 billion to be utilized to retire our outstanding convertible debt in June 2013) compared to $3.21 billion for fiscal year 2012, an increase of 48 percent. During the quarter, Symantec repurchased 7 million shares for $125 million at an average price of $20.61. During the fiscal year 2013, the Company repurchased 49 million shares at an average price of $16.98, equivalent to $826 million. At the end of the fourth quarter, Symantec had $1.2 billion remaining for future repurchases in the current board authorized stock repurchase plans.

Symantec's Board of Directors has declared a quarterly cash dividend of $0.15 per common share to be paid on June 27, 2013 to all shareholders of record as of the close of business on June 19, 2013. The ex-dividend date will be June 17, 2013.

Symantec's Board of Directors approved the initiation of quarterly cash dividends to its shareholders in January of 2013. Future dividend declarations will be subject to Board approval.

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 fourth quarter and fiscal year, ended March 29, 2013, 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 website at least 15 minutes early to register, download and install any necessary audio software. A replay and script of our officers' remarks will be available on the investor relations' home page shortly after the call is completed.

About Symantec

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

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 products and integration of acquired businesses, and the degree to which these products 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 website at www.symantec.com/invest.


 
                                                                            
                                                                            
                            SYMANTEC CORPORATION                            
                    Condensed Consolidated Balance Sheets                   
                          (In millions, unaudited)                          
                                                                            
                                                   March 29,     March 30,  
                                                      2013        2012 (1)  
                                                 ------------- -------------
                                                                            
ASSETS                                                                      
                                                                            
Current assets:                                                             
  Cash and cash equivalents                      $       4,685 $       3,162
  Short-term investments                                    62            49
  Trade accounts receivable, net                         1,031           940
  Inventories                                               24            28
  Deferred income taxes                                    198           205
  Other current assets                                     315           249
                                                 ------------- -------------
    Total current assets                                 6,315         4,633
                                                 ------------- -------------
                                                                            
Property and equipment, net                              1,122         1,100
Intangible assets, net                                     977         1,337
Goodwill                                                 5,841         5,826
Other long-term assets                                     124           124
                                                 ------------- -------------
    Total assets                                 $      14,379 $      13,020
                                                 ============= =============
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                                                            
Current liabilities:                                                        
  Accounts payable                               $         334 $         324
  Accrued compensation and benefits                        422           416
  Deferred revenue                                       3,496         3,444
  Current portion of long-term debt                        997             -
  Other current liabilities                                313           321
                                                 ------------- -------------
    Total current liabilities                     
       5,562         4,505
                                                 ------------- -------------
                                                                            
Long-term debt                                           2,094         2,039
Long-term deferred revenue                                 521           529
Long-term deferred tax liabilities                         403           288
Long-term income taxes payable                             318           393
Other long-term obligations                                 60            94
                                                 ------------- -------------
    Total liabilities                                    8,958         7,848
                                                 ------------- -------------
                                                                            
                                                 ------------- -------------
    Total Symantec Corporation stockholders'                                
     equity                                              5,421         5,094
                                                 ------------- -------------
                                                                            
Noncontrolling interest in subsidiary                        -            78
                                                 ------------- -------------
  Total stockholders' equity                             5,421         5,172
                                                 ------------- -------------
    Total liabilities and stockholders' equity   $      14,379 $      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     
                                --------------------  ----------------------
                                March 29,  March 30,               Constant 
                                   2013       2012      Actual   Currency(1)
                                ---------  ---------  ---------- -----------
                                                                            
Net revenue:                                                                
  Content, subscription, and                                                
   maintenance                  $   1,527  $   1,470      4%          5%    
  License                             221        211      5%          6%    
                                ---------  ---------  ---------- -----------
    Total net revenue               1,748      1,681      4%          5%    
                                ---------  ---------  ---------- -----------
                                                                            
Cost of revenue:                                                            
  Content, subscription, and                                                
   maintenance                        265        248                        
  License                              27         15                        
  Amortization of intangible                                                
   assets                              16         24                        
                                ---------  ---------  ---------- -----------
    Total cost of revenue             308        287      7%          7%    
                                ---------  ---------  ---------- -----------
Gross profit                        1,440      1,394      3%          4%    
                                ---------  ---------  ---------- -----------
                                                                            
Operating expenses:                                                         
Sales and marketing                   697        741                        
Research and development              267        241                        
General and administrative            114        113                        
Amortization of intangible                                                  
 assets                                71         72                        
Restructuring and transition           40         31                        
Impairment of intangible assets         -          4                        
                                ---------  ---------  ---------- -----------
  Total operating expenses          1,189      1,202      -1%         0%    
                                ---------  ---------  ---------- -----------
Operating income                      251        192      31%        31%    
                                ---------  ---------  ---------- -----------
                                                                            
  Interest income                       3          3                        
  Interest expense                    (37)       (28)                       
  Other income (expense), net          12         (2)                       
  Gain from sale of joint                                                   
   venture                              -        526                        
                                ---------  ---------  ---------- -----------
Income before income taxes            229        691     -67%        N/A    
                                ---------  ---------  ---------- -----------
                                                                            
  Provision for income taxes           41        132                        
                                ---------  ---------  ---------- -----------
Net income attributable to                                                  
 Symantec Corporation                                                       
 stockholders                   $     188  $     559     -66%        N/A    
                                =========  =========  ========== ===========
                                                                            
Net income per share                                                        
 attributable to Symantec                                                   
 Corporation stockholders --              
                                  
 basic                          $    0.27  $    0.77                        
Net income per share                                                        
 attributable to Symantec                                                   
 Corporation stockholders --                                                
 diluted                        $    0.26  $    0.76                        
Weighted-average shares                                                     
 outstanding attributable to                                                
 Symantec Corporation                                                       
 stockholders -- basic                693        728                        
Weighted-average shares                                                     
 outstanding attributable to                                                
 Symantec Corporation                                                       
 stockholders -- diluted              714        736                        
                                                                            
(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    
                                     Year Ended             Growth Rate     
                                --------------------  ----------------------
                                March 29,  March 30,               Constant 
                                   2013       2012      Actual   Currency(1)
                                ---------  ---------  ---------- -----------
                                                                            
Net revenue:                                                                
  Content, subscription, and                                                
   maintenance                  $   6,021  $   5,823      3%          5%    
  License                             885        907      -2%         0%    
                                ---------  ---------  ---------- -----------
    Total net revenue               6,906      6,730      3%          5%    
                                ---------  ---------  ---------- -----------
                                                                            
Cost of revenue:                                                            
  Content, subscription, and                                                
   maintenance                      1,017        943                        
  License                              89         48                        
  Amortization of intangible                                                
   assets                              69         91                        
                                ---------  ---------  ---------- -----------
    Total cost of revenue           1,175      1,082      9%          9%    
                                ---------  ---------  ---------- -----------
Gross profit                        5,731      5,648      1%          4%    
                                ---------  ---------  ---------- -----------
                                                                            
Operating expenses:                                                         
  Sales and marketing               2,735      2,814                        
  Research and development          1,012        969                        
  General and administrative          450        437                        
  Amortization of intangible                                                
   assets                             286        289                        
  Restructuring and transition        125         56                        
  Impairment of intangible                                                  
   assets                               -          4                        
                                ---------  ---------  ---------- -----------
    Total operating expenses        4,608      4,569      1%          3%    
                                ---------  ---------  ---------- -----------
Operating income                    1,123      1,079      4%          8%    
                                ---------  ---------  ---------- -----------
                                                                            
  Interest income                      12         13                        
  Interest expense                   (139)      (115)                       
  Other income (expense), net          27         (6)                       
  Loss from joint venture               -        (27)                       
  Gain from sale of joint                                                   
   venture                              -        526                        
                                ---------  ---------  ---------- -----------
Income before income taxes          1,023      1,470     -30%        N/A    
                                ---------  ---------  ---------- -----------
                                                                            
  Provision for income taxes          258        298                        
                                ---------  ---------  ---------- -----------
Net income attributable to                                                  
 Symantec Corporation                                                       
 stockholders                   $     765  $   1,172     -35%        N/A    
                                =========  =========  ========== ===========
                                                                            
                                                                            
Net income per share                                                        
 attributable to Symantec                                                   
 Corporation stockholders --                                                
 basic                          $    1.09  $    1.58                        
Net income per share                                                        
 attributable to Symantec                                                   
 Corporation stockholders --                                                
 diluted                        $    1.08  $    1.57                        
Weighted-average shares                                                     
 outstanding attributable to                                                
 Symantec Corporation                                                       
 stockholders -- basic                701        741                        
Weighted-average shares                                                     
 outstanding attributable to                                                
 Symantec Corporation                                                       
 stockholders -- diluted              711        748                        
                                                                            
(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)                          
                                                                            
                                                          Year Ended        
                                                   ------------------------ 
                                                    March 29,    March 30,  
                                                       2013       2012 (1)  
                                                   -----------  ----------- 
                                                                            
OPERATING ACTIVITIES:                                                       
Net income                                         $       765  $     1,172 
                                                                            
Adjustments to reconcile net income to net cash                             
 provided by operating activities:                                          
  Depreciation                                             283          273 
  Amortization of intangible assets                        355          380 
  Amortization of debt issuance costs and                                   
   discounts                                                60           59 
  Stock-based compensation expense                         164          164 
  Impairment of intangible assets                            -            4 
  Deferred income taxes                                     44           15 
  Net gain from sale of joint venture                        -         (526)
  Loss from joint venture                                    -           27 
  Liquidation of foreign entities                            -            3 
  Other                                                      5           (9)
  Net change in assets and liabilities, excluding                           
   effects of acquisitions:                                                 
    Trade accounts receivable, net                        (107)          89 
    Inventories                                              4            2 
    Accounts payable                                        33           30 
    Accrued compensation and benefits                       12          (31)
    Deferred revenue                                       119          177 
    Income taxes payable                                   (31)          39 
    Other assets                                           (68)         (14)
    Other liabilities                                      (45)          47 
                                                   -----------  ----------- 
      Net cash provided by operating activities          1,593        1,901 
                                                   -----------  ----------- 
                                                                            
INVESTING ACTIVITIES:                                                       
  Purchases of property and equipment                     (336)        (286)
  Cash payments for acquisitions, net of cash                               
   acquired                                                (28)        (508)
  Purchases of equity investments                            -          (10)
  Proceeds from sale of joint venture                        -          530 
  Purchases of short-term investments                        -          (47)
  Proceeds from sale of short-term investments              46            3 
  Other                                                     (1)           - 
                                                   -----------  ----------- 
      Net cash used in investing activities               (319)        (318)
                                                   -----------  ----------- 
                                                                            
FINANCING ACTIVITIES:                                                       
  Net proceeds from sales of common stock under                             
   employee stock benefit plans                            281          147 
  Excess income tax benefit from the exercise of                            
   stock options                                            11            8 
  Tax payments related to restricted stock units           (36)         (41)
  Repurchases of common stock                             (826)        (893)
  Purchase of additional equity interest in                                 
   subsidiary                                             (111)           - 
  Repayments of debt and other obligations                   -         (607)
  Proceeds from debt issuance, net of discount             996            - 
  Debt issuance costs                                       (7)           - 
                                                   -----------  ----------- 
      Net cash provided by (used in) financing                              
       activities                                          308       (1,386)
                                                   -----------  ----------- 
                                                                            
Effect of exchange rate fluctuations on cash and                            
 cash equivalents                                          (59)          15 
                                                   -----------  ----------- 
Change in cash and cash equivalents                      1,523          212 
Beginning cash and cash equivalents                      3,162        2,950 
                                                   -----------  ----------- 
Ending cash and cash equivalents                   $     4,685  $     3,162 
                                                   ===========  =========== 
                                                                            
                                                                            
(1) Derived from audited consolidated financial statements.                 
                                                                            
                                                                            
                                                                            
                            SYMANTEC CORPORATION                            
      Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1)     
               (In millions, except per share data, unaudited)              
                                                                            
                                                              Year-Over-Year
                                                             Non-GAAP Growth
                              Three Months Ended                   Rate     
                 ------------------------------------------- ---------------
                    March 29, 2013        March 30, 2012            Constant
                 ------------------- -----------------------                
                               Non-                    Non-         Currency
                  GAAP   Adj   GAAP    GAAP    Adj     GAAP  Actual    (2)  
                 ------ ----- ------ ------- ------  ------- ------ --------
                                                                            
Net revenue:     $1,748   N/A $1,748 $ 1,681    N/A  $ 1,681     4%       5%
                 ------ ----- ------ ------- ------  ------- ------ --------
                                                                            
Gross profit:    $1,440 $  19 $1,459 $ 1,394 $   28  $ 1,422     3%       4%
 Stock-based                                                                
  compensation              3                     4     
                    
 Amortization of                                                            
  intangible                                                                
  assets                   16                    24                         
                 ------ ----- ------ ------- ------  ------- ------ --------
                                                                            
Gross margin %                                                 -110         
                  82.4%        83.5%   82.9%           84.6%    bps  -90 bps
                                                                            
Operating                                                                   
 expenses:       $1,189 $ 147 $1,042 $ 1,202 $  153  $ 1,049    -1%       1%
 Stock-based                                                                
  compensation             36                    37                         
 Amortization of                                                            
  intangible                                                                
  assets                   71                    72                         
 Restructuring                                                              
  and transition           40                    31                         
 Impairment of                                                              
  intangible                                                                
  assets                    -                     4                         
 Acquisition/                                                               
  divestiture-                                                              
  related                                                                   
  expenses                  -                     1                         
 Settlements of                                                             
  litigation                -                     8                         
                 ------ ----- ------ ------- ------  ------- ------ --------
                                                                            
Operating                                                                   
 expenses as a %                                               -280         
 of revenue       68.0%        59.6%   71.5%           62.4%    bps -240 bps
                 ------ ----- ------ ------- ------  ------- ------ --------
                                                                            
Operating income $  251 $ 166 $  417 $   192 $  181  $   373    12%      12%
                 ------ ----- ------ ------- ------  ------- ------ --------
                                                                            
Operating margin                                                170         
 %                14.4%        23.9%   11.4%           22.2%    bps  140 bps
                 ------ ----- ------ ------- ------  ------- ------ --------
                                           .                                
Net income:      $  188 $ 126 $  314 $   559 $ (276) $   283    11%      N/A
 Gross profit                                                               
  adjustment               19                    28                         
 Operating                                                                  
  expense                                                                   
  adjustment              147                   153                         
 Non-cash                                                                   
  interest                                                                  
  expense                  15                    14                         
 Gain on sale of                                                            
  joint venture             -                  (526)                        
 China VAT                                                                  
  refund                   (2)                    -                         
 Income tax                                                                 
  effect on                                                                 
  above items             (46)                   61                         
 Tax related                                                                
  adjustments:                                                              
  Release of                                                                
   pre-                                                                     
   acquisition                                                              
   tax                                                                      
   contingencies           (7)                   (6)                        
                 ------ ----- ------ ------- ------  ------- ------ --------
                                                                            
Diluted net                                                                 
 income per                                                                 
 share                                                                      
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders    $ 0.26 $0.18 $ 0.44 $  0.76 $(0.38) $  0.38    16%      N/A
                 ------ ----- ------ ------- ------  ------- ------ --------
                                                                            
Diluted                                                                     
 weighted-                                                                  
 average shares                                                             
 outstanding                                                                
 attributable to                                                            
 Symantec                                                                   
 Corporation                                                                
 stockholders       714          714     736             736    -3%      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    
                                                   ------------------------ 
                                                    March 29,    March 30,  
                                                       2013         2012    
                                                   -----------  ----------- 
GAAP Revenue                                                                
  Content, subscription, and maintenance           $     1,527  $     1,470 
  License                                                  221          211 
                                                   -----------  ----------- 
Total Revenue                                      $     1,748  $     1,681 
                                                   -----------  ----------- 
GAAP Revenue Y/Y Growth Rate                                                
  Content, subscription, and maintenance                     4%           6%
  License                                                    5%         -26%
                                                   -----------  ----------- 
Total Y/Y Growth Rate                                        4%           0%
                                                   -----------  ----------- 
GAAP Revenue Y/Y Growth Rate in Constant Currency                           
  Content, subscription, and maintenance                     5%           7%
  License                                                    6%         -26%
                                                   -----------  ----------- 
Total Y/Y Growth Rate in Constant Currency                   5%           1%
                                                   -----------  ----------- 
                                                                            
GAAP Revenue by Segment (2)                                                 
  Consumer                                         $       530  $       523 
  Security and Compliance                                  513          502 
  Storage and Server Management                            634          591 
  Services                                                  71           65 
                                                   -----------  ----------- 
GAAP Revenue by Segment: Y/Y Growth Rate (2)                                
  Consumer                                                   1%           2%
  Security and Compliance                                    2%           8%
  Storage and Server Management                              7%          -6%
  Services                                                   9%          -3%
                                                   -----------  ----------- 
GAAP Revenue by Segment: Y/Y Growth Rate in                                 
 Constant Currency (2)                                                      
  Consumer                                                   3%           2%
  Security and Compliance                                    4%           9%
  Storage and Server Management                              7%          -5%
  Services                                                  10%          -4%
                                                   -----------  ----------- 
                                                                            
GAAP Revenue by Geography                                                   
  International                                    $       897  $       876 
  US                                                       851          805 
    Americas (U.S., Latin America, Canada)                 957          903 
    EMEA                                                   483          457 
    Asia Pacific & Japan                                   308          321 
                                                   -----------  ----------- 
GAAP Revenue by Geography: Y/Y Growth Rate                                  
  International                                              2%           4%
  US                                                         6%          -3%
    Americas (U.S., Latin America, Canada)                   6%          -1%
    EMEA                                                     6%          -5%
    Asia Pacific & Japan                                    -4%          15%
                                                   -----------  ----------- 
GAAP Revenue by Geography: Y/Y Growth Rate in                               
 Constant Currency                                                          
  International                                              4%           5%
  US                                                         6%          -3%
    Americas (U.S., Latin America, Canada)                   6%          -1%
    EMEA                                                     5%          -1%
    Asia Pacific & Japan                                     1%          13%
                                                   -----------  ----------- 
                                                                            
GAAP Deferred Revenue                              $     4,017  $     3,973 
                                                   -----------  ----------- 
GAAP Deferred Revenue Y/Y Growth Rate                        1%           4%
                                                   -----------  ----------- 
GAAP Deferred Revenue Y/Y Growth Rate in Constant                           
 Currency                                                    3%           5%
                                                   -----------  ----------- 
                                                                            
(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   
                                                     -------
--------------- 
                                                      March 29,   March 30, 
                                                        2013        2012    
                                                     ----------  ---------- 
GAAP Operating Margin by Segment                                            
 Consumer                                                    49%         48%
 Security and Compliance                                     28%         23%
 Storage and Server Management                               36%         34%
 Services                                                    14%         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  
                                                       March 29,   March 30,
                                                         2013        2012   
                                                      ----------  ----------
Cost of revenue                                       $        3  $        4
Sales and marketing                                           16          18
Research and development                                      13          13
General and administrative                                     7           6
                                                      ----------  ----------
  Total stock-based compensation                      $       39  $       41
                                                      ==========  ==========

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.

Impairment of intangible assets: During the fourth quarter of fiscal 2012, we recorded an impairment loss of $4 million, resulting from lower than expected future cash flows of non-core brand names. This impairment loss was primarily due to increased focus on using the Symantec and Norton brands rather than non-core brands in go-to-market efforts. We do not believe that these charges are indicative of future operating results. 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 req uires 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.

Settlements of litigation: From time to time we are party to legal settlements. We exclude the impact of these settlements because we do not consider these settlements to be part of the ongoing operation of our business and because of the singular nature of the claims underlying the matter.

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.

Gain on sale of joint venture: On March 30, 2012, we sold our 49% ownership interest in the joint venture to Huawei for $530 million in cash (less costs associated with the sale of the joint venture of $4 million). The Company's management excludes this gain when evaluating its ongoing performance and therefore has excluded this gain when presenting non-GAAP financial measures.

China VAT refund: During the third quarter of fiscal 2013, 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 third quarter of fiscal 2013.

Release of pre-acquisition tax contingencies: During the fourth quarter of fiscal 2012, we remeasured certain tax accruals related to pre-acquisition contingencies. As a result, we realized benefits to GAAP net income of $7 million and non-GAAP net income of $1 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.

During the fourth quarter of fiscal 2013, we recorded a benefit to GAAP net income of $7 million for the state impacts of the VERITAS 2002-2005 final closing agreement. The benefit has been excluded from our non-GAAP results as it relates to a pre-acquisition contingency.

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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