CUPERTINO, Calif. --April 28, 1997-- Symantec Corporation (Nasdaq: SYMC) today reported record revenues for the March 1997 quarter of $129.7 million. Earnings per share before One Time Charge grew 67% from the March 1996 quarter to $.30 per share. A one time charge of $10 million was incurred from the sale of Symantec's Networking business to Hewlett-Packard.
"Symantec experienced an excellent quarter as we continued our commitment of delivering products focused on keeping customers' computers safe and reliable and as we continued to engage other market leaders in a series of customer-centered partnerships," said Gordon E. Eubanks Jr., president and CEO of Symantec. "We are pleased to see strong performance in US distribution revenues as well as the Café product line."
During the March quarter, Symantec and ZDNet launched Healthypc.Com. This new web site makes it possible for every Web user to enjoy a level of PC maintenance normally available only from corporate technical support departments. Healthypc.Com consists of two separate services: a free advice and consultation area maintained by ZDNet, and "The Health Club", a subscription-based membership service which provides access to Symantec's leading Anti-virus, Utility and LiveUpdate software.
Symantec also introduced a new version of the world's best selling fax software, WinFax 8.0. This new version responds to customer feedback for an easier, faster and smarter fax product. It delivers all the traditional productivity benefits of computer based faxing, plus the ability to send faxes through the Internet, as well as the ability to add voice answering and telephony.
In the March quarter, Symantec also brought Norton Utilities expertise to the NT platform with Norton Utilities for Windows NT 4.0. Norton Utilities automatically prevents problems on the NT platform, repairs and protects the workstation and performs defragmentation of NT servers.
Additional new products included: Café enhancements with the introduction of Café 1.5 for Mac, pcANYWHERE CE for Handheld PC's and Norton AntiVirus for Internet Email Gateways.
Symantec won several very prestigious awards during the March quarter. The company was particularly proud of our three Editors' Choice Awards for Norton Utilities for Windows 95, Norton AntiVirus 2.0 for Windows 95 and Internet FastFind. These awards are yet another indication that Symantec stands for quality and performance.
Symantec's Internet Tools product line also continued to win a number of awards in the March quarter including CNET Best Internet Development Tool.
It was also announced today that Symantec has signed an agreement with SystemSoft. This agreement will give the company a significant presence in the OEM channel and help to create products that will reduce PC users reliance on technical support. It will link Symantec's technology which automatically fixes PC problems with SystemSoft's technology which helps reduce technical support calls.
Symantec and Informix Software entered into a strategic alliance to develop and market solutions allowing developers to rapidly create and deploy next-generation enterprise Java applications. Informix has adopted Symantec's Visual Café Pro as the premier Java development tool for Informix OnLine and Informix universal server databases.
Symantec also announced that Sun has agreed to license Symantec's Just-In-Time Java Compiler. Symantec's Just-In-Time Java compiler is the fastest JIT available and an integral part of Symantec's Café and Visual Café products. It provides top Java performance by instantly converting Java bytecode to native code on the fly, resulting in an increase in application speed without any additional work on the part of the applet writer.
Revenues for the 12 months ended March 28, 1997 were $472.2 million, an increase of 6 percent from prior year revenue of $445.4 million.
Net income before acquisition, restructuring and other expenses was $43.4 million, or $.78 per share. This compares to a prior year loss of $.7 million, or a loss of $.01 per share. Net income after acquisition, restructuring and other expenses was $26.0 million or $.47 per share compared to a prior year loss of $39.8 million or a loss of $.76 per share. Acquisition, restructuring and other expenses in the current year were primarily related to the sale of Norton Administrator for Networks and restructuring charges. Prior year charges were primarily related to the acquisition of Delrina Corporation.
As of March 28, 1997, Symantec had $207.5 million in cash and restricted investments, compared to $129.2 million in the prior year.
This press release contains forward-looking statements. There are certain important factors that could cause results to differ materially from those anticipated by some of the statements made above. Among these are the anticipation of the growth of certain market segments, the positioning of Symantec's products in those segments, the competitive environment in the software industry, dependence on other products, such as Windows 95 and the importance of new Symantec products. Additional information concerning those and other factors is contained in the "Risk Factors" section of the Company's annual report on Form 10-K for the fiscal year ended March 29, 1996 and the Company's quarterly report on Form 10-Q for the fiscal quarter ended December 27, 1996.
About Symantec Corporation
Symantec Corporation develops, markets, and supports a complete line of application and system software products designed to enhance individual and workgroup productivity. Platforms supported include IBM personal computers and compatibles, Apple Macintosh computers as well as all major network operating systems. Founded in 1982, the company's global operations span North America, Europe and several fast growing markets throughout Asia Pacific and Latin America. Information on the company and its products can be obtained by calling (800) 441-7234 toll free or (541) 334-6054.
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balance sheets follow.