Symantec Corp. Reports Operating Results (10-Q)
Symantec a world leader in Internet security technology provides a broad range of content security solutions to individuals and companies. The company is a leading provider of anti-virus protection Internet content and e-mail filtering and mobile code detection technologies to enterprise customers. Symantec Corp. has a market cap of $14.05 billion; its shares were traded at around $17.25 with a P/E ratio of 12.6 and P/S ratio of 2.3. Symantec Corp. had an annual average earning growth of 20.6% over the past 10 years. GuruFocus rated Symantec Corp. the business predictability rank of 3-star. Highlight of Business Operations: Our operating segments are significant strategic business units that offer different products and services, distinguished by customer needs. Since the March 2008 quarter, we have operated in five operating segments: Consumer, Security and Compliance, Storage and Server Management, Services, and Other. During the first quarter of fiscal 2010, we changed our reporting segments to better align to our operating structure, resulting in the Enterprise Vault products that were formerly included in the Security and Compliance segment being moved to the Storage and Server Management segment. Also, Software as a Service (SaaS) offerings moved to either the Security and Compliance segment or the Storage and Server Management segment from the Services segment, based on the nature of the service delivered. Fiscal year 2009 Enterprise Vault revenue of $197 million and fiscal year 2009 SaaS revenue of $51 million was moved. The predominant amount of SaaS revenue went to the Security and Compliance segment. We revised the segment information for the prior year to conform to the new presentation. For further descriptions of our operating segments, see Note 9 of the Notes to Condensed Consolidated Financial Statements in this quarterly report. Our reportable segments are the same as our operating segments.
Fluctuations in the U.S. dollar compared to foreign currencies negatively impacted our international revenue by approximately $14 million and $89 million during the three and six months ended October 2, 2009 respectively, as compared to the same period last year. We are unable to predict the extent to which revenues in future periods will be impacted by changes in foreign currency exchange rates. If our level of international sales and expenses increase in the future, changes in foreign exchange rates may have a potentially greater impact on our revenues and operating results.
Our net income was $150 million for the three months ended October 2, 2009 as compared to our net income of $126 million for the three months ended October 3, 2008. The higher net income for the second quarter of fiscal 2010 as compared to the same period last year was primarily due to our ongoing cost and expense discipline which more than offset our revenue decline.
Net revenues decreased for the three months ended October 2, 2009, as compared to the same period last year, due to a $117 million decrease in Licenses revenues partially offset by a $73 million increase in Content, subscriptions, and maintenance revenues. The net decrease was primarily driven by the items discussed above under Financial Results and Trends.
Net revenues decreased for the six months ended October 2, 2009, as compared to the same period last year, due to a $253 million decrease in Licenses revenues coupled with a $9 million decrease in Content, subscriptions, and maintenance revenues. The net decrease was primarily driven by the items discussed above under Financial Results and Trends.
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