Cupertino, Calif --October 15, 1998-- Symantec Corporation (Nasdaq: SYMC) today announced earnings for the second quarter of fiscal 1999, ended October 2, 1998. Net revenue was $140 million and earnings per share (EPS) was $0.19 before one-time charges.
Income before one-time charges was approximately $11 million. Income, after one-time charges of approximately $6.1 million related to Symantec's recent restructuring of certain operations, was approximately $7 million or $0.12 per share. Symantec's balance sheet and results of operations do not yet include the recording of the company's acquisition of Intel's anti-virus business.
"The U.S. retail software market improved in September but was slow in July and August," said Gordon Eubanks, president and CEO of Symantec. "Despite this, Symantec continued to perform well in retail with five of the top ten business software products in the PC Data list in August. During the quarter we changed the retail landscape with the launch of Norton SystemWorks. This product is unique because it satisfies customers' need for a truly integrated product that offers tremendous value."
For the calendar year, PC Data shows that Symantec continues to be the second largest software vendor in the U.S. retail market after Microsoft in revenue and units. With the launch in August of Norton SystemWorks, Symantec introduced the first truly integrated utility suite. The product addresses customer needs by providing single installation with no duplication of any components; a consistent user interface providing access to the entire product from one window; and one product update center, one tech support number, one manual and one emergency disk set.
A number of new versions of products were also launched into the retail channel during the quarter. These include WinFax PRO 9.0, pcTelecommute 1.0, Norton AntiVirus 5.0 and TalkWorks Pro 2.0.
With strong sales across the entire range of Symantec corporate products, Symantec's corporate business performed well during the quarter. For the first six months of the current fiscal year, corporate revenue has grown 31 percent compared to the same six months a year ago.
In September, Symantec announced its purchase of Intel's anti-virus business and that it had licensed Intel systems management technologies. As part of the agreement, Symantec has committed to support 18,000 Intel LANDesk Virus Protect customers and Intel will recommend Norton AntiVirus to its customers worldwide as the anti-virus product of choice.
The Intel alliance follows a similar relationship with IBM which Symantec announced in May this year. Since then Symantec has converted nearly 3,500 companies representing over one million seats from IBM AntiVirus to Norton AntiVirus including companies such as Texas Utilities, Mellon Bank, Bell Atlantic and BancBoston.
"Symantec's strategy of partnering with industry leading companies to serve the corporate market is succeeding," said Eubanks. "We anticipate being as successful in converting Intel customers as we have been in converting IBM customers. In addition, other large companies are seeing the benefits that will be derived from the new products that will incorporate IBM and Intel technology and are replacing competitors' products with Norton AntiVirus."
Contribution to total revenue by international operations was 33 percent, one percent greater than the previous quarter and three percent greater than the same quarter in the prior year. Europe continued to perform strongly contributing 22 percent of total revenue while North America contributed 67 percent.
Product awards and accolades
The trade press continues to recognize Symantec's products. PC World found Norton AntiVirus "outperformed all the other tested packages at finding and eliminating viruses," and gave the product a World Class award. In September, PC Magazine awarded pcANYWHERE32 the Editor's Choice in a competitive review, noting the product is the "clear choice for remote control." This quarter, six Symantec products appeared on Windows Magazine WinList, a listing of products rated best in their category. Visual Cafe Database Developer Edition, WinFAX Pro, pcANYWHERE32, Norton Mobile Essentials, ACT!, and Norton Ghost were all represented.
USA Today Online named Norton Mobile Essentials, pcANYWHERE32, and pcANYWHERE Express to its list of top 10-rated tools for traveling PCs. CNET gave Norton Utilities an Editor's Choice award noting it is "the best of the diagnostics bunch." Likewise, Home Office Computing awarded Norton Utilities a Best Buy award, adding the product is "clearly the best of its kind," while FamilyPC named the product to their Annual Top 100 list. Norton Utilities, Visual Cafe Database Developer Edition, and ACT! all made PC/Computing's A-List of top products. In a competitive review, Info Security News editors found Norton Your Eyes Only at the top of their lists, awarding both the Best Buy and Editor's Choice award.
Consolidated Balance Sheets
Consolidated Statements of Operations
Forward looking statement
This press release contains forward-looking statements. There are certain important factors that could cause Symantec's future development efforts 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, changes to operating systems and product strategy by vendors of operating systems, 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 April 3, 1998 and the quarterly report on Form 10-Q for the fiscal quarter ended July 3, 1998.
Symantec is the world leader in utility software for business and personal computing. Symantec products and solutions help make users productive and keep their computers safe and reliable anywhere and anytime. Symantec offers a broad range of solutions and is acclaimed as a leader in both customer satisfaction and product brand recognition. Symantec is traded on Nasdaq under the symbol SYMC. More information on the company and its products can be obtained at www.symantec.com.
NOTE TO EDITORS: If you would like additional information on Symantec Corporation and its products, view the Symantec Press Center at www.symantec.com/PressCenter/ on Symantec's Website.