On Aug. 9, Symantec revised the financial results for the quarter ended July 2, 2004 that were announced on its earnings call on July 21, 2004. Please see the press release for updated consolidated financial statements or the company’s Form 10-Q filed on Aug. 10, 2004.
CUPERTINO, Calif. - July 21, 2004 - Symantec Corp. (Nasdaq: SYMC), the global leader in information security, today reported results for the fiscal first quarter ended July 2, 2004. Symantec posted revenue for the quarter of $577 million, a 48 percent increase compared to $391 million for the same quarter last year, driven by solid enterprise revenues and stronger than expected consumer results.
GAAP Results: Net income for the fiscal first quarter was $131 million, compared to $59 million for the same quarter last year. Earnings per share was $0.37, compared to earnings per share of $0.18 for the year-ago quarter.
Non-GAAP Results: Non-GAAP net income for the fiscal first quarter was $142 million, compared to $75 million for the same quarter last year. Non-GAAP earnings per share was $0.39, compared to earnings per share of $0.22 for the year-ago quarter. Non-GAAP results and related reconciliation, as outlined in the attached consolidated statements, exclude expenses from the amortization of other intangibles from acquisitions, acquired in-process research and development, restructuring charges, and patent settlement charges as well as related income tax benefits. See "Use of Non-GAAP Financial Information" below.
"Our enterprise business continues to gain momentum as we enhance our offerings to protect customers from a broadening array of threats and the consumer business continues to perform above expectations," said John W. Thompson, Symantec chairman and CEO. "As security and network management continue to converge, we are well positioned with a broad portfolio of products and services to address both consumer and enterprise customer needs."
For the quarter, Symantec's worldwide enterprise business, including enterprise security, enterprise administration, and services, represented 48 percent of total revenue and grew 24 percent. Symantec's enterprise security business represented 35 percent of total revenue and grew 24 percent year-over-year; the enterprise administration business represented 11 percent of revenues and grew 27 percent; and the services business represented 2 percent of total revenue and grew 14 percent. Symantec's consumer business grew 79 percent and represented 52 percent of total revenue.
International revenues represented 52 percent of total revenue in the first quarter and grew 51 percent over the same quarter last year. The Americas, including the United States, Latin America, and Canada, grew 43 percent. The Europe, Middle East and Africa region recorded 49 percent growth and Japan/Asia Pacific grew 62 percent.
Symantec is raising forward-looking guidance for the fiscal second quarter ending Oct.1, 2004, as follows:
Non-GAAP earnings per share excludes the pre-tax amortization of other intangibles from acquisitions, acquired in-process research and development and restructuring charges of approximately $14 million and $52 million for the quarter ending Oct. 1, 2004, and the fiscal year ending April 1, 2005, 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 amortization of other intangibles and in-process research and development, and certain other identified charges, such as restructuring and patent settlement, 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 also be found on the investor relations Web site at www.symantec.com/invest.
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.