CUPERTINO, Calif. - April 23, 2003 - Symantec Corp. (Nasdaq: SYMC), the world leader in Internet security, today reported results for the fiscal fourth quarter and fiscal year ended March 28, 2003. Symantec posted revenue for the quarter of $390 million, a 26 percent increase compared to $311 million for the same quarter last year. Revenue for fiscal year 2003 was $1.407 billion, a 31 percent increase compared to $1.071 billion for fiscal year 2002.
"This is a strong final quarter that closes an exceptional year for Symantec," said John W. Thompson, Symantec Chairman and CEO. "Both the quarter and the year came in well ahead of expectations with record revenue and earnings during very challenging times. Our diverse set of customers, best-of-breed security solutions and unmatched geographic diversity all contributed to our success."
GAAP Results: Net income for the fiscal fourth quarter was $68 million, compared to $5 million from the same quarter last year. Earnings per share was $0.41, compared to earnings per share of $0.03 for the same quarter last year. For fiscal year 2003, Symantec reported net income of $248 million, compared to a net loss of $28 million for fiscal year 2002. Earnings per share was $1.54, compared to a net loss per share of $0.20 for fiscal year 2002.
Non-GAAP Results: Non-GAAP net income for the fiscal fourth quarter was $78 million, compared to $65 million from the same quarter last year. Non-GAAP earnings per share was $0.47, compared to earnings per share of $0.41 for the year-ago quarter. For fiscal year 2003, Symantec reported non-GAAP net income of $280 million, compared to $201 million in fiscal year 2002. Non-GAAP earnings per share was $1.72, compared to earnings per share of $1.30 for fiscal year 2002. Non-GAAP results, as outlined in the attached consolidated statements, exclude 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. See "Use of Non-GAAP Financial Information" below.
For the quarter, Symantec's worldwide enterprise security business represented 41 percent of total revenue and grew 32 percent compared to the same quarter last year. Symantec's consumer business grew 32 percent and represented 43 percent of total revenue.
International revenues represented 51 percent of total revenue in the fourth quarter and grew 28 percent over the same quarter last year. Sales in Europe, Middle East and Africa led the increase with 36 percent year-over-year growth while sales in the United States grew 23 percent.
Symantec products received the following awards from industry publications during the quarter:
Management offers the following forward-looking guidance for the fiscal first quarter 2004 ending July 4, 2003:
Non-GAAP earnings per share excludes the pre-tax amortization of intangibles from acquisitions of approximately $9 million and $34 million for the quarter ending July 4, 2003 and the fiscal year ending April 2, 2004, respectively.
USE OF NON-GAAP FINANCIAL INFORMATION: In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Symantec reports non-GAAP financial results. Non-GAAP net income and earnings per share exclude acquisition related charges, such as acquired in-process research and development and amortization of goodwill and other intangibles, and certain other charges, such as restructurings and site closures, as well as the tax effect of these items. Symantec's management believes these non-GAAP measures are useful to investors because they provide supplemental information that facilitates comparisons to prior periods. Management uses these non-GAAP measures to evaluate its financial results, develop budgets and manage expenditures. The method Symantec uses to produce non-GAAP results is not computed according to GAAP, is likely to differ from the methods used by other companies and should not be regarded as a replacement for corresponding GAAP measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which is attached to this re
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.lease and can be found on the investor relations Web site at www.symantec.com/invest/center.html.
Symantec has scheduled a conference call for 5:30 p.m. EDT/2:30 p.m. PDT today to discuss fiscal fourth quarter and fiscal year 2003 results, and to review guidance for the fiscal first quarter and 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 will be available on the investor relations home page shortly after the call is completed.
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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