CUPERTINO, Calif. - July 23, 2003 - Symantec Corp. (Nasdaq: SYMC), the world leader in Internet security, today reported results for the fiscal first quarter 2004 ended July 4, 2003. Symantec posted revenue for the quarter of $391 million, a 24 percent increase compared to $316 million for the same quarter last year.
GAAP Results: Net income for the fiscal first quarter was $68 million, compared to $57 million for the same quarter last year. Earnings per share was $0.41, compared to earnings per share of $0.36 for the year-ago quarter.
Non-GAAP Results: Non-GAAP net income for the fiscal first quarter was $75 million, compared to $66 million for the same quarter last year. Non-GAAP earnings per share was $0.45, compared to earnings per share of $0.41 for the year-ago quarter. Non-GAAP results, as outlined in the attached consolidated statements, exclude expenses from the amortization of other intangibles from acquisitions and restructuring and site closures as well as related income tax benefits. See "Use of Non-GAAP Financial Information" below.
"We continue to see strong performance across all segments of our business around the world, despite the difficult economic environment," said John W. Thompson, Symantec Chairman and CEO. "We believe our investments in the broadest range of security technologies and services delivered to the most diverse set of customers in our segment will continue to fuel the future growth of our company."
For the quarter, Symantec's worldwide enterprise security business represented 42 percent of total revenue and grew 25 percent compared to the same quarter last year. Symantec's consumer business grew 35 percent and represented 43 percent of total revenue. Symantec's enterprise administration business declined 11 percent in line with expectations and represented 13 percent of total revenue while the services business grew 160 percent and represented 2 percent of total revenue.
International revenues represented 51 percent of total revenue in the first quarter and grew 33 percent over the same quarter last year. The Europe, Middle East and Africa region led the increase for the quarter with 55 percent growth, followed by Latin America with 25 percent growth. Japan recorded 12 percent year-over-year growth with Asia Pacific at 8 percent growth. The United States grew at 16 percent.
Management offers the following forward-looking guidance for the fiscal second quarter 2004 ending Oct. 3, 2003:
Symantec has scheduled a conference call for 5 p.m. EDT/2 p.m. PDT today to discuss fiscal first quarter 2004 results, and to review guidance for the fiscal second quarter. 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 and the script of our officers' remarks will be available on the investor relations home page shortly after the call is completed.
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 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 release and can be found on the investor relations Web site at www.symantec.com/invest/center.html.
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.