MOUNTAIN VIEW, Calif. - January 23, 2013 - Symantec Corp. (Nasdaq: SYMC) today reported the results of its third quarter of fiscal year 2013, ended Dec. 28, 2012. GAAP revenue for the fiscal third quarter was $1.79 billion, up 4 percent year-over-year and up 5 percent after adjusting for currency.
"We continue to deliver better than expected results," said Steve Bennett, president and chief executive officer, Symantec. "I'm so proud of our employees. These types of results don't happen by accident. The fact that we can deliver these results in a period of significant transition and uncertainty is a testament to our employees, the strength of our brand, the quality of our products and the scope of our customer base."
"Strength in EMEA, information management and license revenue drove our FX adjusted organic revenue growth of 4%," said James Beer, executive vice president and chief financial officer, Symantec. "Our better than expected top line growth coupled with disciplined expense management drove non-GAAP operating margins of 25.6% even as we are investing in certain areas to better serve our customer needs."
GAAP Results for third quarter of fiscal year 2013
- GAAP operating margin was 16.6 percent compared with 17.5 percent for the same quarter last year, down 90 basis points year-over-year.
- GAAP net income was $212 million compared with net income of $240 million for the year-ago period, down 12 percent year-over-year.
- GAAP diluted earnings per share were $0.30 compared with $0.32 for the year ago quarter, down 6 percent year-over-year.
- GAAP deferred revenue was $3.806 billion compared with $3.665 billion for the year ago quarter, up 4 percent year-over-year on an actual and currency-adjusted basis.
- Cash flow from operating activities was $463 million compared with $403 million for the year ago period, up 15 percent year-over-year.
- Symantec ended the quarter with cash, cash equivalents and short-term investments of $4.25 billion. During the quarter, Symantec repurchased 11 million shares for $200 million at an average price of $17.94. Symantec has $283 million remaining in the current board authorized stock repurchase plan.
Non-GAAP Results for third quarter of fiscal year 2013
- Non-GAAP operating margin was 25.6 percent compared with 26.2 percent for the same quarter last year, down 60 basis points year-over-year and down 80 basis points after adjusting for currency, due to increased investment in certain areas to better serve our customer needs
- Non-GAAP net income was $313 million compared to $314 million for the same quarter last year.
- Non-GAAP diluted earnings per share were $0.45 compared with earnings per share of $0.42 for the year-ago quarter, up 7 percent year-over-year.
Business Segment Highlights for the Quarter
- The Consumer segment represented 30 percent of total revenue and increased 1 percent year-over-year (increased 2 percent after adjusting for currency).
- The Security and Compliance segment represented 29 percent of total revenue and increased 3 percent year-over-year (increased 4 percent after adjusting for currency).
- The Storage and Server Management segment represented 37 percent of total revenue and increased 8 percent year-over-year (increased 9 percent after adjusting for currency).
- Services represented 4 percent of total revenue and increased 10 percent year-over-year (increased 9 percent after adjusting for currency).
Geographic Highlights for the Quarter
- International revenue represented 52 percent of total revenue and increased 6 percent year-over-year (increased 8 percent after adjusting for currency).
- The Europe, Middle East and Africa region represented 28 percent of total revenue and increased 6 percent year-over-year (increased 10 percent after adjusting for currency).
- Asia Pacific/Japan revenue represented 19 percent of total revenue and increased 7 percent year-over-year (increased 6 percent after adjusting for currency).
- The Americas, including the United States, Latin America and Canada, represented 53 percent of total revenue and increased 3 percent year-over-year on an actual and currency-adjusted basis.
Symantec has scheduled a Webcast from 4:30 p.m. ET/1:30 p.m. PT to 6:30 p.m. ET/3:30 p.m. PT today to discuss the Company's strategic direction, operational plan, capital allocation strategy and financial results, including guidance. To listen to the live event and view the corresponding presentation, please go to http://www.symantec.com/invest at least 15 minutes early to register, download and install any necessary audio software. A replay of the webcast including presentation will be available within 24 hours after the event.
Symantec protects the world's information, and is a global leader in security, backup and availability solutions. Our innovative products and services protect people and information in any environment – from the smallest mobile device, to the enterprise data center, to cloud-based systems. Our world-renowned expertise in protecting data, identities and interactions gives our customers confidence in a connected world. More information is available at www.symantec.com or by connecting with Symantec at: go.symantec.com/socialmedia.
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USE OF NON-GAAP FINANCIAL INFORMATION: Our results of operations have undergone significant change due to a series of acquisitions, the impact of stock-based compensation, impairment charges and other corporate events. To help our readers understand our past financial performance and our future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Our non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release and which can be found, along with other financial information, on the investor relations' page of our Web site at www.symantec.com/invest.