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Press Release

Symantec Announces Record First Quarter Results

Strong Enterprise and Robust International Sales Drive Growth

CUPERTINO, Calif. - July 19, 2000 - Symantec Corp. (Nasdaq: SYMC), a world leader in Internet security technology, today announced the sixth consecutive quarter of record revenues and earnings. Strong sales in the enterprise market and continued international growth resulted in net revenue of $191.4 million for the first fiscal quarter 2001, ended June 30, 2000. This represents an increase of 18 percent, on a pro-forma basis, over the same quarter a year ago.

Earnings per share before the amortization of goodwill and one-time charges for the first quarter was $0.67, 43 percent higher than the same quarter last year. Net income before the amortization of goodwill and one-time charges for the first quarter was $43 million, 57 percent higher than the June quarter last year. All figures exclude the results of operations from the company's divestiture of the Visual Café and ACT! product lines.

"Our focus on enterprise customers and our success in international markets resulted in a stronger overall portfolio and a better and more sustainable revenue balance within the company," said John W. Thompson, Symantec chairman, president and CEO. "In addition, we made significant progress in our service provider strategy this quarter, working with a number of key partners worldwide. The solutions we are providing these partners reinforce the scalability of our Internet security technologies and continue to open doors to new markets and new customers."

Enterprise revenue for the quarter grew to 50 percent of Symantec's revenue mix and increased 28 percent from the June quarter a year ago. Consumer revenue grew nine percent from the same quarter a year ago.

In the June 2000 quarter, international revenue represented 44 percent of total revenue and increased 27 percent from the June quarter a year ago. Driven by continued strong performance in the enterprise license business, Symantec's Europe, Middle East and Africa (EMEA) region grew 24 percent from the June quarter a year ago and accounts for 26 percent of total revenue. Symantec's Japan region grew at 35 percent and accounts for nine percent of total revenue. Revenue from the Latin American region grew at 108 percent and represents three percent of total revenue.

Quarterly Highlights

  • Yahoo! selected Symantec's carrier-class anti-virus technology to protect millions of Yahoo! Mail users from viruses and malicious mobile code.
  • Symantec also signed strategic infrastructure agreements with leading international service providers. Dial-up customers using Denmark's largest Internet service provider, Tele Danmark, and Norway's leading Internet service provider, Nextra, are now protected by Symantec's anti-virus and Internet security technologies.
  • Symantec introduced Symantec Enterprise Security, a comprehensive and modular Internet security solution for enterprise computing environments. The solution allows a corporation to manage the complete security lifecycle of their computing environment from assessment and planning to implementation and monitoring.
  • Symantec's consumer products have consistently appeared on the list of Top 10 selling business software products in the retail market, according to PC Data reports. Norton AntiVirus has held the top spot on the list since March. Norton SystemWorks has been on the list since it first shipped in late 1998 -- 20 consecutive months.
  • After only six months on the market, Norton Internet Security climbed to the number six spot on PC Data's Top 10 list in May.
  • Symantec launched Norton Personal Firewall to protect connected consumers against hacking and privacy intrusions.
  • Toshiba will be providing selected desktop customers with full versions of Norton Internet Security or Norton AntiVirus.
  • Worldwide, Symantec has earned more than 25 industry awards on its products and services during the quarter including PC Magazine Editor's Choice awards for Norton Internet Security, Norton AntiVirus and Norton Ghost; Network Magazine's Product of the Year award for Norton AntiVirus Enterprise Solution, Network Computing Editor's Choice Award for pcAnywhere; and Computer Shopper's Best Buy Award and CNET Editor's Choice Award for Norton Internet Security.
Conference Call
Symantec has scheduled a conference call for 4:30 p.m. EDT today to discuss fiscal first quarter results. Interested parties may access the conference call on the Internet through Vcall at www.vcall.com. To listen to the live call, please go to the Web site at least 15 minutes early to register, download and install any necessary audio software.

Consolidated Financial Statements

About Symantec
Symantec is the world leader in providing solutions to help individuals and enterprises assure the security, availability, and integrity of their information. Headquartered in Cupertino, Calif., Symantec has operations in more than 40 countries. More information is available at www.symantec.com.

NOTE TO EDITORS: : If you would like additional information on Symantec Corporation and its products, please view the Symantec Press Center at http://www.symantec.com/PressCenter/ on Symantec's Web site. All prices noted are in US dollars and are valid only in the United States.

Symantec, the Symantec logo, VERITAS, and the VERITAS logo are trademarks or registered trademarks of Symantec Corporation or its affiliates in the United States and certain other countries. Additional company and product names may be trademarks or registered trademarks of the individual companies and are respectfully acknowledged.

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, new security threats 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 31, 2000.