Symantec Reports Record First Quarter Earnings on 26% Revenue Growth

CUPERTINO, Calif. - July 28, 2005 - Symantec Corp. (Nasdaq: SYMC) today reported results for the first quarter of fiscal year 2006, ended July 1, 2005. Symantec posted revenue for the quarter of $700 million, a 26 percent increase compared to $557 million for the same quarter last year.

GAAP Results:
GAAP net income for the fiscal first quarter was $199 million, compared to $117 million for the same quarter last year. Earnings per share was $0.27, compared to earnings per share of $0.16 for the year-ago quarter.

Non-GAAP Results:
Non-GAAP net income for fiscal first quarter was $199 million, compared to $128 million for the same quarter last year. Non-GAAP earnings per share was $0.27, 50 percent higher than the June 2004 quarter's non-GAAP earnings per share of $0.18. Non-GAAP results, as outlined in the attached consolidated statements, exclude acquisition-related amortization of intangibles and amortization of deferred stock-based compensation, acquired IPR&D, restructuring charges, integration planning charges related to the merger with VERITAS, and the related income tax benefits, and a reduction of taxes provided on earnings repatriated under the American Jobs Creation Act. See "Use of Non-GAAP Financial Information" below.

"Symantec's success in the quarter was paralleled by equally strong performance by VERITAS," said John W. Thompson, Symantec chairman and chief executive officer. "Our results demonstrate the team's success in balancing merger-related activities with a continued focus on execution."

Revenue Components
For the quarter, Symantec's worldwide enterprise business, including enterprise security, enterprise administration, and services, represented 49 percent of total revenue and grew 23 percent year-over-year. Symantec's enterprise security business represented 38 percent of total revenue and grew 26 percent; the enterprise administration business represented 10 percent of total revenue and grew 10 percent; and the services business represented 1 percent of total revenue and grew 85 percent. Symantec's consumer business represented 51 percent of total revenue and grew 28 percent.

International revenues represented 51 percent of total revenue in the first quarter and grew 27 percent over the same quarter last year. The Americas, including the United States, Latin America, and Canada, represented 55 percent of total revenue and grew 25 percent. The Europe, Middle East, and Africa region represented 31 percent of total revenue and grew 28 percent. Asia Pacific/Japan represented 14 percent of total revenue and grew 22 percent.

VERITAS Results
Revenue for VERITAS as a standalone company was $529 million for the June quarter, up 9 percent year-over-year. Non-GAAP operating expenses and cost-of-sales were $407 million or 77 percent of revenue. Non-GAAP operating expenses and cost-of-sales exclude acquisition-related amortization of intangibles and amortization of deferred stock-based compensation, merger-related expenses, and related income tax benefits. The financial results of Symantec reported in this release do not include the operating results of VERITAS since Symantec's merger with VERITAS was completed on July 2, 2005, after the close of Symantec's June quarter.

Business Outlook
The methodology for presenting combined historical financial information, as well as guidance for fiscal year 2006, will be reviewed in the conference call schedule for 5 p.m. ET/2 p.m. PT today. See "Conference Call" below.

Quarterly Highlights

• Symantec signed 274 contracts worldwide worth more than $100,000 each, including 15 deals worth more than $1 million each, during the quarter. Fifty-three percent of these deals included multiple Symantec enterprise products and services, an increase of 22 percent from the same quarter last year.
• Symantec signed new or extended agreements with customers including Amica Mutual Insurance Company, the oldest mutual insurer of automobiles in the United States; Baltimore County Public Schools, one of the 25 largest school systems in the nation; First Horizon National Corporation, one of the nation's largest financial services companies; Inova Health System, a not-for-profit health care system based in Northern Virginia; and Tellabs, which designs, develops, deploys, and supports solutions for telecom service providers in about 100 countries.
• International customers from the quarter included ING Vysya Bank Ltd, a premier private sector bank with more than three million customers and 400 branches across India; LG Electronics, one of the world's leading digital companies; Samsung Electronics Co. LTD, one of the world's largest microchip makers and South Korea's top electronics company; and VIVO, the largest cellular phone operator in Latin America with more than 37 million users.

Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss the results of the first quarter of fiscal year 2006, ended July 1, 2005, and to review guidance for the fiscal year 2006. 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 script of our officers' remarks will be available on the investor relations' home page shortly after the call is completed.