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Symantec Closes Fiscal Year 2004 With Record Revenue and Earnings Growth

  • 29 April, 2004 10:28

<p>Below is a release that crossed the wires overnight regarding Symantec's results for the fiscal fourth quarter and the fiscal year ended April 2, 2004. More specific information on Symantec's financials is available upon request. If you would like to speak to a Symantec spokesperson please contact Debbie Sassine or Renee Bushnell on 02 9954 3299.</p>
<p>Symantec Closes Fiscal Year 2004 With Record Revenue and Earnings Growth
Raises Fiscal Year 2005 Guidance</p>
<p>CUPERTINO, Calif. - April 29, 2004 - Symantec Corp. (Nasdaq: SYMC), the global leader in information security, today reported results for the fiscal fourth quarter and the fiscal year ended April 2, 2004. Symantec posted revenue for the quarter of $556 million, a 43 per cent increase compared to $390 million for the same quarter last year. Revenue for fiscal year 2004 was $1.870 billion, a 33 per cent increase compared to $1.407 billion for fiscal year 2003.</p>
<p>GAAP Results: Net income for the fiscal fourth quarter was $117 million, compared to $68 million for the same quarter last year. Earnings per share was $0.33, compared to earnings per share of $0.21 for the same quarter last year. For fiscal year 2004, Symantec reported net income of $371 million, compared to net income of $248 million for fiscal year 2003. Earnings per share was $1.07, compared to earnings per share of $0.77 for fiscal year 2003.</p>
<p>Non-GAAP Results: Non-GAAP net income for fiscal fourth quarter was $126 million, compared to $78 million for the same quarter last year. Non-GAAP earnings per share was $0.35, compared to earnings per share of $0.23 for the year-ago quarter. For fiscal year 2004, Symantec reported non-GAAP net income of $411 million, compared to $280 million in fiscal year 2003. Non-GAAP earnings per share was $1.18, compared to earnings per share of $0.86 for fiscal year 2003. Non-GAAP results and related reconciliation, as outlined in the attached consolidated statements, exclude expenses from the amortization of other intangibles from acquisitions, acquired in-process research and development, restructuring charges, and patent settlement charges as well as related income tax benefits. See “Use of Non-GAAP Financial Information” below.</p>
<p>“We continue to execute on our vision of helping customers secure and manage their IT infrastructure, with last quarter’s performance capping off a tremendously successful year,” said John W. Thompson, Symantec chairman and CEO. “We are encouraged by the building momentum in the enterprise segment and, once again, the consumer segment turned in a stellar performance.”</p>
<p>Revenue Components
For the quarter, Symantec’s worldwide enterprise business, including enterprise security, enterprise administration, and services represented 52 per cent of total revenue and grew 29 per cent year-over-year. Symantec’s enterprise security business represented 38 per cent of total revenue and grew 30 per cent; the enterprise administration business represented 12 per cent of total revenue and grew 26 per cent; and the services represented 2 per cent of total revenue and grew 32 per cent compared to the same quarter last year. Symantec’s consumer business represented 48 per cent of total revenue and grew 62 per cent year-over-year.</p>
<p>International revenues represented 53 per cent of total revenue in the fourth quarter and grew 48 per cent over the same quarter last year. Japan led the increase for the quarter with 66 per cent growth, followed by Canada with 50 per cent growth. The Europe, Middle East and Africa region recorded 48 per cent growth, Asia Pacific recorded 36 per cent growth and Latin America grew 12 per cent. The United States grew 37 per cent.</p>
<p>Business Outlook
Symantec is raising forward-looking guidance for the fiscal first quarter ending July 2, 2004, as follows:
Revenue is expected to be in the range of $525 to $555 million, an increase of $40 million from prior guidance.
GAAP earnings per share is expected to be $0.30 at the midpoint of revenue guidance.
Non-GAAP earnings per share is expected to be $0.33 at the midpoint of revenue guidance.
Symantec is raising forward-looking guidance for fiscal year 2005 ending April 1, 2005, as follows:
·Revenue is estimated at $2.335 billion, an increase of $160 million from prior guidance and a 25 per cent increase over fiscal year 2004.
·At the guided annual revenue, the quarterly revenue estimates are as follows: Jun-04 $540 million; Sep-04 $565 million; Dec-04 $615 million; and Mar- 05 $615 million.
·By business segment we are estimating the following revenue growth and mix for fiscal year 2005:
Consumer Products - 28% growth; 48% mix
Enterprise Security - 18% growth; 37% mix
Enterprise Administration - 34% growth; 13% mix
Services - 19% growth; 2% mix
·GAAP earnings per share is estimated at $1.37, a 28 per cent increase over fiscal year 2004.
·Non-GAAP earnings per share is estimated at $1.46, a 24 per cent increase over fiscal year 2004.
·Earnings per share by quarter is estimated to be as follows:
GAAP - Jun-04 $0.30; Sep-04 $0.32; Dec-04 $0.37; Mar-05 $0.38
Non-GAAP - Jun-04 $0.33; Sep-04 $0.34; Dec-04 $0.39; Mar-05 $0.40
· GAAP gross margin is forecasted to average 82.8 per cent for the full year, with non-GAAP forecasted at 84.7 per cent.
·GAAP operating income is estimated at $719 million or 31 per cent of revenue for the full year, with non-GAAP estimated at $771 million or 33 per cent of revenue.
·Common Stock Equivalents (CSE’s) are expected to grow by approximately 3 per cent over the next year.</p>
<p>Non-GAAP forward-looking guidance for fiscal year 2005 excludes the pre-tax amortization of other intangibles from previous acquisitions of approximately $13 million per quarter, or $52 million for the entire fiscal year.</p>
<p>Quarterly Highlights
·Symantec signed 264 contracts worldwide worth more than $100,000 each, including 70 worth more than $300,000 and 11 worth more than $1 million each, during the quarter.
·Symantec signed new or extended agreements with customers including Knight Ridder, the nation's second-largest newspaper publisher; The Guardian Life Insurance Company, the fourth largest mutual life insurance company in the United States; Fifth Third, a diversified financial services company; Hughes Supply, one of the nation's largest diversified wholesale distributors; Flextronics, the leading Electronics Manufacturing Services provider focused on delivering operational services to technology companies; FrontBridge Technologies, the enterprise market leader for email security and message management services; MerckKGaA, an international leader in its core field of pharmaceuticals and chemicals based in Germany; Tata Consultancy Services, one of the world’s largest global software consulting and services organisations; Benic Solutions Corporation, a fully-owned subsidiary of Kawasaki Heavy Industries, Ltd. based in Japan, providing information system and IT management services for Kawasaki.
·During the quarter, the company released the Symantec Gateway Security 300 Series appliance. This easy-to-use appliance delivers security and networking capabilities including firewall, intrusion prevention, intrusion detection, antivirus policy enforcement, content filtering and virtual private networking (VPN) functionality to provide small business secure high-speed access, reliable connectivity and ample bandwidth at an affordable price.
·In addition, Symantec launched the Symantec Clientless VPN Gateway 4400 series. The new appliance line provides customers easy-to-manage, secure remote access to corporate networks, allowing enterprises to roll out secure remote access to meet business objectives and increase efficiency.
·Symantec announced the new Symantec Managed Security Services Secure Internet Interface, which provides clients with greater visibility into their security posture and a deeper perspective on how to mitigate risks in the global threat landscape. It also provides enhanced device tracking and management, and expanded administration capabilities to help client organizations better enforce their security model through the Secure Internet Interface.
·Symantec also introduced Enterprise Security Manager (ESM) for the Federal Information Security Management Act of 2002 (FISMA). Based on system security requirements of FISMA, Symantec ESM for FISMA provides specific, pre-configured security policies, which allow government agencies to audit their environments for compliance.</p>
<p>About Symantec
Symantec is the global leader in information security providing a broad range of software, appliances and services designed to help individuals, small and mid-sized businesses, and large enterprises secure and manage their IT infrastructure. Symantec's Norton brand of products is the worldwide leader in consumer security and problem-solving solutions. Headquartered in Cupertino, Calif., Symantec has operations in more than 35 countries. More information is available at http://www.symantec.com.</p>
<p>NOTE TO EDITORS: 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 United States.</p>
<p>Symantec and the Symantec logo are trademarks or registered trademarks, in the United States and certain other countries, of Symantec Corporation. Additional company and product names may be trademarks or registered trademarks of the individual companies and are respectfully acknowledged.</p>
<p>FORWARD LOOKING STATEMENT: This press release contains forward-looking statements, including forecasts of future revenue, gross margin, operating profit, earnings per share and common stock equivalents, expected activities, and other financial and business results that involve 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 by this press release. Such risk factors include, among others: the sustainability of recent growth rates, particularly in consumer products; whether certain market segments, particularly enterprise security, grow as anticipated; the positioning of Symantec's products in those segments; the competitive environment in the software industry; ability to integrate acquired companies and technology; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether Symantec can successfully develop new products and the degree to which these gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. Additional information concerning these and other risk factors is contained in the Risk Factors sections of Symantec’s previously filed Form 10-K and Form 10-Q.</p>
<p>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 gross margin, operating expenses, operating income, net income and earnings per share exclude acquisition related charges, such as amortization of other intangibles and in-process research and development, and certain other identified charges, such as restructuring and patent settlement, as well as the tax effect of these items, where applicable. 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 is attached to this release and can be found on the investor relations Web site at www.symantec.com/invest/center.html</p>
<p>Should you no longer wish to receive messages on Symantec's Revenue and Earnings Growth 2004, please send a reply e-mail with the subject matter UNSUBSCRIBE Symantec's Revenue and Earnings Growth 2004.</p>
<p>For further information please contact:
Emma Young
Symantec Australia/New Zealand
Phone: 02-8879-1113
Mobile: 0402-112-189
Email: Emma_Young@symantec.com</p>
<p>Debbie Sassine/Renee Bushnell
Spectrum Communications
Phone: 02-9954-3299
Email: debbies@spectrumcomms.com.au or reneeb@spectrumcomms.com.au</p>

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