CUPERTINO, Calif. - Oct. 16, 2002 - Symantec Corp. (Nasdaq: SYMC), the world leader in Internet security, today reported results for the fiscal second quarter 2003, ended Sept. 27, 2002. Symantec posted revenue for the quarter of $325 million, a 34 percent increase compared to $242 million for the same quarter last year. Performance was driven by continued strength in the company's collection of "must-have" security solutions for individuals and enterprises around the globe.
Pro Forma Results: Pro forma net income before one-time charges and the amortization of acquisition-related intangible assets for the fiscal second quarter was $60 million, compared to $42 million from the same quarter last year. Symantec reported pro forma earnings per share of $0.38, compared to pro forma earnings per share of $0.28 for the year-ago quarter.
GAAP Results: Net income including one-time charges and the amortization of acquisition-related intangible assets for the second quarter was $52 million, compared to a net loss of $12 million from the same quarter last year. Symantec reported earnings per share of $0.33, compared to a net loss per share of $0.08 for the year-ago quarter. GAAP results, as outlined in the attached consolidated statements, includes expenses from the amortization of goodwill, the amortization of other intangibles from acquisitions, acquired in-process research and development, and restructuring and site closures as well as related income tax benefits.
"In the face of today's difficult economy and the challenge of successfully integrating four acquisitions, we continue to demonstrate our commitment to deliver great value for customers and strong financial results for our investors," said John W. Thompson, Symantec chairman and CEO. "Our business, both consumer and enterprise, is firing on all cylinders across every region."
For the quarter, Symantec's worldwide enterprise security business grew 30 percent compared to the same quarter last year and represented 44 percent of total revenue. Performance in the enterprise security business was supported by 61 percent growth in firewall/VPN sales and 36 percent growth in antivirus sales compared to the same quarter last year. Symantec's security services revenue grew 102 percent compared to the same quarter last year, supported by 127 percent growth in managed security services.
Symantec's consumer business grew 68 percent and represented 38 percent of total revenue, supported by continued strength in consumer antivirus revenue, which grew 76 percent compared to the same quarter last year. Symantec's enterprise administration business represented 16 percent of total revenue and declined 2 percent.
International revenues grew 45 percent over the same quarter last year and represented 47 percent of total revenue in the second quarter. Symantec posted growth in every region. Sales in Europe, Middle East and Africa led the increase with 55 percent year-over-year growth followed by 51 percent growth in Japan, 35 percent growth in Canada, 26 percent growth in the United States and 24 percent growth in Asia Pacific.
Symantec has scheduled a conference call for 4:30 p.m. EDT today to discuss fiscal second quarter results. Interested parties may access 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 15 minutes early to register, download and install any necessary audio software. In addition, conference call numbers are available. The dial-in number for domestic listeners is 1-800-967-7184, while international listeners can dial 1-719-457-2633. A replay of the call will be available on the Internet at http://www.symantec.com/invest/index.html until Nov. 15, 2002.
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.
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FORWARD LOOKING STATEMENT: This press release contains forward-looking statements, including forecasts of future revenue and earnings per share, expected industry patterns, and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates, particularly in consumer products; whether certain market segments, particularly enterprise security, grow as anticipated; the positioning of Symantec's products in those segments; the competitive environment in the software industry; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether Symantec can successfully develop new products and the degree to which these gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. Additional information concerning these and other risk factors is contained in the Risk Factors sections of Symantec’s previously filed Form 10-K and Form 10-Q.