Symantec Corp, the world leader in Internet security, today reported results for the fiscal first quarter 2004 ended 4 July 2003. Symantec posted revenue for the quarter of $391 million, a 24% increase compared to $316 million for the same quarter last year.
GAAP results: Net income for the fiscal first quarter was $68 million, compared to $57 million for the same quarter last year. Earnings per share was $0.41, compared to earnings per share of $0.36 for the year-ago quarter.
Non-GAAP results: Non-GAAP net income for the fiscal first quarter was $75 million, compared to $66 million for the same quarter last year. Non-GAAP earnings per share was $0.45, compared to earnings per share of $0.41 for the year-ago quarter. Non-GAAP results, as outlined in the attached consolidated statements, exclude expenses from the amortisation of other intangibles from acquisitions and restructuring and site closures as well as related income tax benefits. See "Use of Non-GAAP Financial Information" below.
"We continue to see strong performance across all segments of our business around the world, despite the difficult economic environment," said John W Thompson, Symantec Chairman and CEO. "We believe our investments in the broadest range of security technologies and services delivered to the most diverse set of customers in our segment will continue to fuel the future growth of our company."
Revenue components
For the quarter, Symantec's worldwide enterprise security business represented 42% of total revenue and grew 25% compared to the same quarter last year. Symantec's consumer business grew 35% and represented 43% of total revenue. Symantec's enterprise administration business declined 11% in line with expectations and represented 13% of total revenue while the services business grew 160% and represented 2% of total revenue.
International revenues represented 51% of total revenue in the first quarter and grew 33% over the same quarter last year. The Europe, Middle East and Africa region led the increase for the quarter with 55% growth, followed by Latin America with 25% growth. Japan recorded 12% year-over-year growth with Asia Pacific at 8% growth. The US grew at 16%.
Business outlook
Management offers the following forward-looking guidance for the fiscal second quarter 2004 ending 3 October 2003:
* Revenue is expected to be in the range of $375 million to $395 million.
* GAAP earnings per share is expected to be $0.38 at the midpoint of the revenue guidance.
* Non-GAAP earnings per share is expected to be $0.41 at the midpoint of the revenue guidance.
Management offers the following forward-looking guidance for fiscal year 2004, ending 2 April 2004, updated to reflect the actual results from the fiscal first quarter and estimated results for the fiscal second quarter:
* Revenue is expected to be approximately $1.665 billion.
* GAAP earnings per share is expected to be $1.82 at the stated revenue forecast, up 7c from the previous guidance provided in April.
* Non-GAAP earnings per share is expected to be $1.96 at the stated revenue forecast, up 8c from the previous guidance provided in April.
Non-GAAP earnings per share excludes the pre-tax amortisation of intangibles and restructuring charges from acquisitions of approximately $6 million and $25 million for the quarter ending 3 October 2003 and the fiscal year ending 2 April 2004, respectively.
Quarterly highlights
* Symantec signed 152 contracts worldwide worth more than $100 000 each, including 30 worth more than $300 000 each and four worth more than $1 million each, during the quarter. Symantec signed new or extended agreements with customers including Alcoa; The University of Texas; Home Box Office; the State of Minnesota Deptartment of Human Services; Time Inc; Premier Inc, a leading healthcare alliance in the US; Kroger Co, one of the nation's largest retail grocery chains; the US Department of Veterans Affairs; the US Department of Education; the US Transportation Safety Administration; and News Corporation, a diversified international media and entertainment company.
* Around the world, Symantec signed contracts with customers including Fortis Bank, an international financial services provider in the fields of insurance, banking and investments; Actia, a worldwide group of leading companies specialised in vehicle electronics and diagnostics; Pechiney, an international business group whose three core businesses are primary aluminium, aluminium conversion and packaging; Vivarte, a leading European manufacturer of shoes; Kredyt Bank, one of Poland's largest banks and financial services companies; Samsung in Korea; and Bank of China.
* During the quarter, Symantec introduced the latest update to the Symantec Security Management System. Symantec Incident Manager 2.0 uses real-time, automated correlation to identify and prioritise security incidents, allowing enterprises to proactively secure their network against known threats and respond to new attacks in real-time.
* Symantec also launched Symantec ManHunt 3.0, providing multi-gigabit network intrusion detection, real-time threat analysis, and proactive prevention and response capabilities to protect organizations against emerging threats and denial-of-service attacks; Symantec Decoy Server, a "honeypot" intrusion detection system (IDS) that detects, contains and monitors unauthorised access and system misuse as it happens; and Symantec Host IDS 4.1, scalable intrusion detection and prevention capabilities for business-critical servers.
* In addition, Symantec released Symantec Vulnerability Assessment, which provides greater control of the network infrastructure through the identification and prioritisation of vulnerabilities and by providing extensive information on remediation actions. During the quarter, Symantec also launched an update to the world's leading remote control solution. pcAnywhere 11.0 extends beyond remote control by providing IT administrators integrated remote management tools and enhanced file transfer to further accelerate helpdesk and server support problem resolution.
* HP joined the Symantec Technology Partner Program with its HP OpenView management software. HP's participation in the program will focus on joint marketing activities around the Smart Plug-in being designed to integrate the Symantec Enterprise Security Architecture with HP OpenView Operations. Symantec's integration effort is expected to allow HP OpenView customers to view actionable security incident alerts within their network infrastructure management console.
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Symantec, the world leader in Internet security technology, provides a broad range of content and network security software and appliance solutions to individuals, enterprises and service providers. The company is a leading provider of client, gateway and server security solutions for virus protection, firewall and virtual private network, vulnerability management, intrusion detection, Internet content and e-mail filtering, remote management technologies and security services to enterprises and service providers around the world. Symantec's Norton brand of consumer security products is a leader in worldwide retail sales and industry awards.
Headquartered in Cupertino, California, Symantec has worldwide operations in 36 countries. For more information, please visit www.symantec.com.
If you would like additional information on Symantec Corporation and its products, please view the Symantec Press Centre at http://www.symantec.com/PressCenter/ on Symantec's Web site. All prices noted are in US dollars and are valid only in the US.