CUPERTINO, Calif. - Jan. 15, 2003 - Symantec Corp. (Nasdaq: SYMC), the world leader in Internet security, today reported results for the fiscal third quarter 2003, ended Dec. 31, 2002. Symantec posted revenue for the quarter of $376 million, a 29 percent increase compared to $290 million for the same quarter last year. Performance was driven by double-digit growth in all regions around the world and continued strength in the company's consumer and enterprise security offerings.
Pro Forma Results: Pro forma net income before the amortization of acquisition-related intangible assets and one-time charges for the fiscal third quarter was $77 million, compared to $59 million from the same quarter last year. Symantec reported pro forma earnings per share of $0.47, representing 21 percent growth compared to pro forma earnings per share of $0.39 for the year-ago quarter.
GAAP Results: Net income for the third quarter was $72 million, compared to net income of $100 thousand from the same quarter last year. Symantec reported earnings per share of $0.44, compared to break-even earnings per share ($0.00) 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, and restructuring and site closures as well as related income tax benefits.
"We continue to see traction across the breadth of our enterprise security solutions with double-digit growth in antivirus, firewall/VPN and vulnerability management sales and more than 200 percent growth in our services business," said John W. Thompson, Symantec chairman and CEO. "In addition, our consumer business continues to overachieve, and for the first time in the history of the company, international revenues surpassed domestic revenue."
International revenues grew 39 percent over the same quarter last year and represented 50.4 percent of total revenue in the third quarter. Latin America led regional sales performance with a revenue growth of 51 percent year-over-year followed by 46 percent growth in Europe, Middle East and Africa, 31 percent growth in Japan, 28 percent growth in Asia Pacific, 21 percent growth in the United States and 16 percent growth in Canada.
For the quarter, Symantec's worldwide enterprise security segment grew 26 percent compared to the same quarter last year and represented 42 percent of total revenue. Performance in the enterprise security business was supported by 49 percent growth in firewall/VPN sales, 25 percent growth in antivirus sales and 20 percent growth in vulnerability management sales compared to the same quarter last year. Symantec's security services segment revenue grew 205 percent compared to the same quarter last year. Symantec's enterprise administration segment grew 7 percent and represented 14 percent of total revenue. Symantec's consumer business grew 40 percent and represented 42 percent of total revenue.
Symantec has scheduled a conference call for 4:30 p.m. EDT today to discuss fiscal third quarter results and guidance for the fiscal fourth quarter and fiscal year 2003 as well as a preview of fiscal year 2004. 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. A replay of the call will be available on the Internet at http://www.symantec.com/invest/index.html until Feb. 14, 2003.
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.