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Symantec Corp. Reports Operating Results (10-Q)

November 01, 2011 | About:
10qk

10qk

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Symantec Corp. (SYMC) filed Quarterly Report for the period ended 2011-09-30.

Symantec Corp. has a market cap of $12.75 billion; its shares were traded at around $17.01 with a P/E ratio of 13.1 and P/S ratio of 2.1. Symantec Corp. had an annual average earning growth of 13.2% over the past 10 years. GuruFocus rated Symantec Corp. the business predictability rank of 4-star.

Highlight of Business Operations:

We experienced growth in our Security and Compliance segment primarily as a result of increased revenue from sales of our authentication, endpoint security, and data loss prevention products. Integration of the VeriSign authentication business contributed $69 million and $142 million for the three and six months ended September 30, 2011, respectively. The favorable foreign currency exchange effect on our international revenue was approximately $18 million and $42 million for the three and six months ended September 30, 2011, respectively, as compared to the same periods last year.

Operating income for the Security and Compliance segment increased due to increases in revenue discussed above, partially offset by increases in salaries and wages of $30 million and $83 million related to employees that we hired as part of our fiscal 2011 acquisitions, and increases in cost of sales of $13 million and $35 million for the three and six months ended September 30, 2011, respectively, as compared to the same periods last year. The increase in operating income was also offset by changes in foreign currency exchange rates for the three and six months ended September 30, 2011, as compared to the same periods last year, which increased total expenses for the Security and Compliance segment by $8 million and $19 million, respectively.

Operating income for the Storage and Server Management segment increased for the six months ended September 30, 2011, as compared to the same period last year, primarily due to an increase in revenues mentioned above offset by an increase in salaries and wages related to sales and marketing personnel of $44 million, employees related to our Clearwell acquisition of $13 million, and research and development expenses of $12 million. In addition, cost of sales increased by $11 million from the cost of our appliances sold and $10 million from technical support. The increase in revenue was also offset by changes in foreign currency exchange rates for the six months ended September 30, 2011, as compared to the same period last year, which increased total expenses for the Storage and Server Management segment by $6 million.

Net cash provided by operating activities was $811 million for the six months ended September 30, 2011, which resulted from net income of $372 million adjusted for non-cash items, which largely included depreciation and amortization charges of $355 million, as well as increased collections of trade accounts receivable of $331 million. These amounts were partially offset by decreases in deferred revenue of $346 million and increases in accrued compensation of $130 million.

Net cash provided by operating activities was $645 million for the six months ended October 1, 2010, which resulted from net income of $295 million adjusted for non-cash items, which largely included depreciation and amortization charges of $377 million, as well as from increased collections of trade accounts receivable of $233 million. These amounts were partially offset by decreases in deferred revenue of $238 million.

Read the The complete Report

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10qk
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