GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Symantec Corp. Reports Operating Results (10-Q)

January 31, 2012 | About:
10qk

10qk

18 followers
Symantec Corp. (SYMC) filed Quarterly Report for the period ended 2011-12-30.

Symantec Corp. has a market cap of $12.55 billion; its shares were traded at around $17.03 with a P/E ratio of 12.5 and P/S ratio of 2. 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:

Revenue increased by $111 million and $532 million for the three and nine months ended December 30, 2011 as compared to the same periods last year. As more fully described below in Results of Operations, we experienced growth across all segments except for the Services and the Other segment. We also experienced a favorable foreign exchange effect on our international revenue of approximately $8 million and $158 million for the three and nine months ended December 30, 2011 as compared to the same periods last year.

For the three months ended December 30, 2011 operating income for the Security and Compliance segment increased due to increases in revenue discussed above and reduced advertising and promotion expenses, as compared to the same period last year. For the nine months ended December 30, 2011, operating income increased due to increases in revenue discussed above, partially offset by increases in salaries and wages of $76 million related to headcount increases as a result of growth in this segment, and increases in cost of sales and equipment costs of $44 million and $18 million, respectively, as compared to the same period last year. For the three and nine months ended December 30, 2011, the increase in revenue was also offset by an adverse foreign currency exchange effect, which increased total expenses for the Security and Compliance segment by $2 million and $22 million, respectively, as compared to the same periods last year.

Operating income for the Storage and Server Management segment decreased as a result of an increase in salaries and wages related to sales and marketing personnel of $26 million and $84 million, for the three and nine months ended December 30, 2011. Cost of sales increased due to increased technical support costs and growth of our appliances business of $44 million and $17 million, respectively. In addition, changes in foreign currency exchange rates increased total operating expenses for the Storage and Server Management segment by $6 million for the nine months ended December 30, 2011. These increases in costs were partially offset by the increase in revenue discussed above for the three and nine months ended December 30, 2011, as compared to the same periods last year.

Net cash provided by operating activities was $1.2 billion for the nine months ended December 30, 2011, which resulted from net income of $613 million adjusted for non-cash items, which largely included depreciation and amortization charges of $530 million, stock-based compensation expense of $123 million, and an increase in deferred income taxes of $38 million. These amounts were partially offset by decreases in deferred revenue of $108 million.

Net cash used in financing activities was $51 million for the nine months ended December 31, 2010, which was due to repurchases of common stock of $690 million and repayment of debt of $510 million, partially offset by proceeds from debt issuance, net of discount, of $1.1 billion and net proceeds from sales of common stock through employee stock plans of $66 million.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.0/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK