Company announces $200 million in cost savings target
CUPERTINO, Calif. – Jan. 24, 2007 – Symantec Corp. (Nasdaq: SYMC) todayreported results for the third quarter of fiscal year 2007, ended Dec.29, 2006. GAAP revenue for the quarter was $1.313 billion and non-GAAPrevenue was $1.324 billion. Non-GAAP revenue grew 6 percent over thecomparable period a year ago.
GAAP deferred revenue at the end of the December 2006 quarter was $2.46billion. Non-GAAP deferred revenue at the end of the quarter reached$2.49 billion, growing 25 percent compared to the December 2005 quarter.
GAAP Results: GAAP net income for the fiscal third quarter was$114 million, compared to $91 million for the same quarter last year.Diluted earnings per share was $0.12 compared to $0.08 per share forthe same quarter last year.
Financial Highlights
For the quarter, Symantec’s Consumer business represented 31 percent oftotal revenue and grew 24 percent year-over-year on a non-GAAP basis.Services represented 4 percent of total revenue and grew 8 percentyear-over-year. The Security and Data Management business represented39 percent of total revenue and grew 3 percent year-over-year. The DataCenter Management business represented 26 percent of total revenue anddeclined 8 percent year-over-year.
International revenues represented 50 percent of total revenue in thethird quarter and grew 7 percent year-over-year on a non-GAAP basis.The Asia Pacific/Japan revenue for the quarter represented 14 percentof total revenue and grew 11 percent year-over-year. The Americas,including the United States, Latin America, and Canada, represented 55percent of total revenue and increased 5 percent year-over-year. TheEurope, Middle East, and Africa region represented 31 percent of totalrevenue for the quarter and grew 5 percent year-over-year.
Cost-Saving Initiative
In order to align costs with new revenue expectations, Symantec plansto reduce its cost structure by $200 million. The company hasidentified a number of areas to achieve its target: reduce new hires;reduce contractor and consulting spending; reduce travel spending;consolidate additional facilities; and reduce the current workforce incertain business functions and geographies.
March Quarter and Fiscal Year 2007 Guidance
Symantec is reaffirming its revised guidance provided on Tuesday, Jan.16, 2007. The impact of the cost-saving initiative is expected to bemodest in the March 2007 quarter and has been taken into account in theguidance.
For the March 2007 quarter, GAAP revenue is estimated between $1.24billion and $1.27 billion. GAAP diluted earnings per share for theMarch quarter is estimated between $0.04 and $0.06. For the fiscal yearending March 2007, GAAP revenue is estimated in the range of $5.08billion to $5.11 billion. GAAP diluted earnings per share is estimatedbetween $0.36 and $0.39. It is possible, however, that there will be arestructuring charge related to the cost savings efforts that wouldaffect GAAP earnings for the March 2007 quarter.
Non-GAAP revenue for the March 2007 quarter is estimated between $1.25billion and $1.28 billion. Non-GAAP diluted earnings per share isestimated between $0.18 and $0.20. For the fiscal year ending March2007, non-GAAP revenue is estimated in the range of $5.13 billion to$5.16 billion. Non-GAAP diluted earnings per share is estimated between$0.92 and $0.95.
Deferred revenue is expected to be in the range of $2.60 billion and$2.65 billion. Cash flow from operations is expected to be of the orderof $1.5 billion.
Quarterly Highlights
- Symantec signed 389 contracts worldwide worth morethan $300,000 each, including 112 worth more than $1 million each,during the quarter. Of those 389 contracts, nearly 80 percent weremultiple product deals.
- In North America, Symantec signed new or extended agreements with customers including Devon Energy Corp., one of the largest independent oil and gas producers and processors of natural gas and natural gas liquids in North America; Nortel, a global leader in delivering communications capabilities; Palm Inc., a leader in mobile computing; Savvis, Inc., global leader in IT infrastructure services for business applications; and United States Postal Service,which delivers 213 billion pieces of mail to more than 146 millionhomes, businesses and Post Office boxes in virtually every state, city,and town in the United States.
- New or extended agreements with international customers included Absa Group Limited, one of South Africa's largest financial services organizations; ANZ, a major Australian financial institution; Bank of Communications Co., Ltd, one of the famous commercial banks of China; Beijing Mobile and Hebei Mobile,subsidiaries of China Mobile Ltd., the leading mobile services providerin China; CTI Móvil, a subsidiary of América Móvil, S.A. de C.V., theleading provider of wireless services in Latin America with more than115 million wireless subscribers as of October 2006; Fujian Telecom, a subsidiary of China Telecom Corporation Limited; HDFC, a leading Indian private sector bank with more than 400 branches and offices nationwide; KAZ, the largest Australian owned ICT company and a leading provider of managed IT services; Malam Communications, a specialist in a variety of IT solutions serving hundreds of customers in all sectors of economy; Mindware SA, a leading distributor of quality IT products to the Middle East and North Africa; Mobile Telephone Networks (MTN), a GSM cellular network operator delivering services in 21 countries in Africa and the Middle East; National Commodity & Derivatives Exchange Limited (NCDEX), a national-level, professionally managed, online commodity exchange; Rostelekom, Russia’s national long-distance telecom carrier; The Suncorp Group, one of Australia's leading banking, insurance, investment and superannuation organizations; and WIPRO Limited, the world's largest independent R&D Services Provider.
Conference Call
Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT todayto discuss results from the fiscal third quarter, ended Dec. 29, 2006,and to review guidance for the fiscal year 2007. Interested parties mayaccess the conference call on the Internet at http://www.symantec.com/invest/index.html.To listen to the live call, please go to the Web site at least 15minutes early to register, download, and install any necessary audiosoftware. A replay and script of our officers’ remarks will beavailable on the investor relations’ home page shortly after the callis completed.
About Symantec
Symantec is a global leader in infrastructure software, enablingbusinesses and consumers to have confidence in a connected world. Thecompany helps customers protect their infrastructure, information, andinteractions by delivering software and services that address risks tosecurity, availability, compliance, and performance. Headquartered inCupertino, Calif., Symantec has operations in 40 countries. Moreinformation is available at www.symantec.com.
NOTE TO EDITORS: If you would like additional information onSymantec Corporation and its products, please visit the Symantec NewsRoom at http://www.symantec.com/news. All prices noted are in U.S. dollars and are valid only in the United States.
Symantec and the Symantec Logo are trademarks or registeredtrademarks of Symantec Corporation or its affiliates in the U.S. andother countries. Other names may be trademarks of their respectiveowners.
FORWARD-LOOKING STATEMENTS: This press release containsstatements regarding our financial and business results, which may beconsidered forward-looking within the meaning of the U.S. federalsecurities laws, including statements relating to projections of futurerevenue and earnings per share for the fourth quarter and fiscal year2007, and projections of deferred revenue, cash flow from operations,amortization of acquisition-related intangibles and stock-basedcompensation. These statements are subject to known and unknown risks,uncertainties and other factors that may cause our actual results,levels of activity, performance or achievements to differ materiallyfrom results expressed or implied in this press release. Such riskfactors include those related to: maintaining customer and partnerrelationships; the anticipated growth of certain market segments,particularly with regard to security and storage; the competitiveenvironment in the software industry; changes to operating systems andproduct strategy by vendors of operating systems; fluctuations incurrency exchange rates; the timing and market acceptance of newproduct releases and upgrades; the successful development of newproducts and integration of acquired businesses, and the degree towhich these products and businesses gain market acceptance; and anypotential effects of Staff Accounting Bulletin 108, “Considering theEffects of Prior Year Misstatements when Quantifying Misstatements inCurrent Year Financial Statements,” which we will be required to adoptin fourth quarter of fiscal year 2007, on our results of operations andfinancial conditions. Actual results may differ materially from thosecontained in the forward-looking statements in this press release.Additional information concerning these and other risk factors iscontained in the Risk Factors section of our Form 10-K for the yearended March 31, 2006 and our Form 10-Q for the quarter ended Sept. 30,2006. We assume no obligation to update any forward-looking informationcontained in this press release.
USE OF NON-GAAP FINANCIAL INFORMATION: Our results ofoperations have undergone significant change due to a series ofacquisitions, the impact of SFAS 123(R) and other corporate events. Tohelp our readers understand our past financial performance and ourfuture results, we supplement the financial results that we provide inaccordance with generally accepted accounting principles, or GAAP, withnon-GAAP financial measures. The method we use to produce non-GAAPresults is not computed according to GAAP and may differ from themethods used by other companies. Our non-GAAP results are not meant tobe considered in isolation or as a substitute for comparable GAAPmeasures and should be read only in conjunction with our consolidatedfinancial statements prepared in accordance with GAAP. Our managementregularly uses our supplemental non-GAAP financial measures internallyto understand, manage and evaluate our business and make operatingdecisions. These non-GAAP measures are among the primary factorsmanagement uses in planning for and forecasting future periods.Investors are encouraged to review the reconciliation of our non-GAAPfinancial measures to the comparable GAAP results, which is attached toour quarterly earnings release and which can be found, along with otherfinancial information, on the investor relations page of our Web siteat www.symantec.com/invest/center.html.
SYMANTEC CORPORATION | Reconciliation of projected GAAP revenue and earnings per share | to non-GAAP revenue and earnings per share | (Unaudited) |
|
|
|
|
|
|
|
|
| Q4 FY'07 |
| FY'07 | Revenue reconciliation (in billions) |
|
|
| GAAP revenue range | $1.24 - $1.27 |
| $5.08 - $5.11 |
|
|
|
| Add back: |
|
|
| Fair value adjustment to Veritas deferred revenue (1) | $0.01 |
| $0.05 |
|
|
|
| Non-GAAP revenue range* | $1.25 - $1.28 |
| $5.13 - $5.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share reconciliation |
|
|
| GAAP earnings per share range | $0.04 - $0.06 |
| $0.36 - $0.39 |
|
|
|
| Add back: |
|
|
| Stock-based compensation, net of tax (2) | $0.03 |
| $0.12 | Fair value adjustment to Veritas deferred revenue and amortizationof acquired product rights | $0.11 |
| $0.44 | and other intangible assets (1,3,4) |
|
|
|
|
|
|
| Non-GAAP earnings per share range* | $0.18 - $0.20 |
| $0.92 - $0.95 | *Webelieve that providing a forecast of the non-GAAP items set forth aboveis useful to investors, and such items are used by our management, forthe reasons associated with each of the adjusting items as describedbelow. |
|
|
|
| (1) Fair value adjustment to Veritas deferred revenue. Weinclude revenue associated with Veritas deferred revenue that wasexcluded as a result of purchase accounting adjustments to fair valuebecause we believe they are reflective of ongoing operating results. |
|
|
|
| (2) Stock-based compensation, net of tax. Consistsof expenses for employee stock options, restricted stock units, andemployee stock purchase plan determined in accordance SFAS 123(R). Weexclude these stock-based compensation expenses because they arenon-cash expenses that we believe are not reflective of ongoingoperating results. Further, we believe it is useful to investors tounderstand the impact of the application of SFAS 123(R) to our resultsof operations.
|
|
|
|
| (3) Amortization of acquired product rights and other intangible assets. Theamounts recorded as amortization of acquired product rights and otherintangible assets arise from prior acquisitions and are non-cash innature. We exclude these expenses because we believe they are notreflective of ongoing operating results in the period incurred and notdirectly related to the operation of our business. |
|
|
|
| (4)Fiscal 2007 also excludes amounts related to executive incentivebonuses, restructuring, and gain on sale of the Milpitas building,which net to an insignificant amount. We exclude these amounts becausewe believe they are not reflective of ongoing operating results in theperiod incurred and not directly related to the operation of ourbusiness. |
[ 本帖最后由 mamigo 于 2007-6-24 08:37 编辑 ] |