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Symantec Corp. Reports Operating Results (10-Q)

August 05, 2009 | About:

Symantec Corp. (NASDAQ:SYMC) filed Quarterly Report for the period ended 2009-07-03.

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 $12.73 billion; its shares were traded at around $15.57 with a P/E ratio of 11 and P/S ratio of 2. 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 June 2009 quarter, 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.

Our net income was $73 million for the three months ended July 3, 2009 as compared to our net income of $172 million for the three months ended July 4, 2008. The lower net income for the first quarter of fiscal 2010 as compared to the same period last year was primarily due to the decrease in revenues, the inclusion of the 14th week in the July 4, 2008 period and fluctuations in the U.S. dollar compared to foreign currencies, partially offset by our ongoing cost and expense discipline.

Net revenues decreased for the three months ended July 3, 2009, as compared to the same period last year, due to a $136 million decrease in Licenses revenues coupled with an $82 million decrease in Content, subscriptions, and maintenance revenues. The net decrease was primarily driven by the items discussed above under Financial Results and Trends, including currency fluctuations and the 14th week of activity during the July 4, 2008 quarter.

Read the The complete ReportSYMC is in the portfolios of Bruce Sherman of Private Capital Management, Mason Hawkins of Southeastern Asset Management, PRIMECAP Management.

Rating: 2.5/5 (2 votes)


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