Symantec closes fiscal year 2003 with record revenues and earnings

Symantec today reported results for the fiscal fourth quarter and fiscal year ended 28 March 2003. Symantec posted revenue for the quarter of $390 million, a 26% increase compared to $311 million for the same quarter last year. Revenue for fiscal year 2003 was $1.407 billion, a 31% increase compared to $1.071 billion for fiscal year 2002.

"This is a strong final quarter that closes an exceptional year for Symantec," said John W Thompson, Symantec Chairman and CEO. "Both the quarter and the year came in well ahead of expectations with record revenue and earnings during very challenging times. Our diverse set of customers, best-of-breed security solutions and unmatched geographic diversity all contributed to our success."

GAAP results: Net income including the amortisation of acquisition-related intangible assets and one-time charges for the fiscal fourth quarter was $68 million, compared to $5 million from the same quarter last year. Symantec reported earnings per share for the fourth quarter of $0.41, compared to earnings per share of $0.03 for the same quarter last year. For fiscal year 2003, Symantec reported net income of $248 million, compared to a net loss of $28 million for fiscal year 2002. Earnings per share of $1.54 compared to a net loss per share of $0.20 for fiscal year 2002.

Non-GAAP results: Non-GAAP net income for the fiscal fourth quarter was $78 million, compared to $65 million from the same quarter last year. Non-GAAP earnings per share was at $0.47, compared to earnings per share of $0.41 for the year-ago quarter. For fiscal year 2003, Symantec recorded reported non-GAAP net income of $280 million, compared to $201 million in fiscal year 2002. Non-GAAP earnings per share was $1.72, compared to earnings per share of $1.30 for fiscal year 2002. Non-GAAP results, as outlined in the attached consolidated statements, exclude expenses from the amortisation of goodwill, the amortisation of other intangibles from acquisitions, acquired in-process research and development and restructuring and site closures as well as related income tax benefits. See "Use of Non-GAAP Financial Information" below.

For the quarter, Symantec's worldwide enterprise security business represented 41% of total revenue and grew 32% compared to the same quarter last year. Symantec's consumer business grew 32% and represented 43% of total revenue.

International revenues represented 51% of total revenue in the fourth quarter and grew 28% over the same quarter last year. Sales in Europe, Middle East and Africa led the increase with 36% year-over-year growth while sales in the US grew 23%.

Management offers the following forward-looking guidance for the fiscal first quarter 2004 ending 4 July 2003:

Symantec expects revenue for the fiscal first quarter to be in the range of $370 million to $390 million, with GAAP earnings per share at approximately $0.34 at the midpoint of the revenue guidance. Non-GAAP earnings per share is expected to be $0.38 at the midpoint of the revenue guidance.

Management offers the following forward-looking guidance for fiscal year 2004, ending 2 April 2004:

Revenue for fiscal year 2004 is expected to be approximately $1.65 billion, with GAAP earnings per share at approximately is expected to be $1.75 at the stated revenue forecast.

Non-GAAP earnings per share is expected to be $1.88 at the stated revenue forecast.

Non-GAAP earnings per share excludes the pre-tax amortisation of intangibles from acquisitions of approximately $9 million and $34 million for the quarter ending 4 July 2003 and the fiscal year ending 2 April 2004, respectively.

Use of non-GAAP financial information: In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Symantec reports non-GAAP financial results. Non-GAAP net income and earnings per share exclude acquisition related charges, such as acquired in-process research and development and amortisation of goodwill and other intangibles, and certain other charges, such as restructurings and site closures, as well as the tax effect of these items. Symantec's management believes these non-GAAP measures are useful to investors because they provide supplemental information that facilitates comparisons to prior periods.

Management uses these non-GAAP measures to evaluate its financial results, develop budgets and manage expenditures. The method Symantec uses to produce non-GAAP results is not computed according to GAAP, is likely to differ from the methods used by other companies and should not be regarded as a replacement for corresponding GAAP measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which can be found on the investor relations Web site at www.symantec.com/invest/center.html.