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Press Release

Symantec Reports First Quarter Fiscal Year 2015 Results

  • Company delivers revenue, non-GAAP operating margin and EPS above guidance
  • Rising demand for cybersecurity products fuels business momentum
MOUNTAIN VIEW, Calif. – August 6, 2014 – Symantec Corp. (Nasdaq: SYMC) today reported the results of its first quarter of fiscal year 2015, ended July 4, 2014.
Michael A. Brown, Symantec interim president and chief executive officer, said, “We are making steady progress against the five priorities outlined last quarter including: optimizing certain businesses for margin, improving efficiencies, attracting top talent, returning significant cash to shareholders and focusing our investments for growth in our enterprise business. These investments are focused in backup appliances, mobile, advanced threat protection, managed security services and data loss prevention.”
“Separation of the sales force into new business and renewals teams has led to improved performance, especially in North America. In particular, our federal and renewals teams both delivered one of their best quarters ever,” Mr. Brown continued. “Our backup appliances, Trust Services and data loss prevention businesses also generated robust revenue growth. In the last two quarters, we’ve introduced nearly two dozen new or improved products and we’re on track to release almost two dozen more by fiscal year end.”
Thomas Seifert, executive vice president and chief financial officer, said, “We’re pleased with the solid results in the quarter, which were driven by productivity improvements in both our new business and renewals teams. We have eight revenue and efficiency initiatives in place that we expect will help us continue to build momentum into next year. We’ve identified three efficiency initiatives that we believe will ramp during the second half of the fiscal year: optimizing our Norton business, streamlining product support, and reducing our global footprint.”

Results for the First Quarter of Fiscal Year 2015


1Q151Q14Reported Y/Y Change*
GAAP
Revenue$1,735 million$1,709 million2%
Operating Margin18.6%13.1%550 bps
Net Income$236 million$157 million50%
Deferred Revenue$3,713 million$3,875 million(4%)
EPS (Diluted)$0.3455%
CFFO$293 million$312 million(6%)
Non-GAAP
Operating Margin24.6%25.2%(60 bps)
Net Income$313 million$311 million1%
EPS (Diluted)$0.45$0.442%
*Note: The first quarter of fiscal year 2015 had 14 weeks compared with 13 weeks in the year ago period.

Second Quarter and Fiscal Year 2015 Guidance


2Q15FY15
GAAP
Revenue$1,600 - $1,640 million$6,630 - $6,770 million
Operating Margin18.7% - 19.5%21.8% - 22.3%
EPS (Diluted)$0.29 - $0.33$1.43 - $1.51
Non-GAAP
Operating Margin25.1% - 25.9%27.7% - 28.2%
EPS (Diluted)$0.40 - $0.44$1.84 - $1.92
Guidance assumes an exchange rate of $1.36 per Euro for the second quarter of fiscal year 2015 versus the actual weighted average rate of $1.33 and an end of period rate of $1.35 per Euro for the second quarter of fiscal year 2014 and $1.38 per Euro for fiscal year 2015. Our guidance assumes an effective tax rate of 27.5 percent for the second quarter of fiscal year 2015 and 27.8 percent for the remaining quarters in fiscal year 2015, and a common stock equivalents total for the quarter and fiscal year of 696 million shares.
Symantec's Board of Directors has declared a quarterly cash dividend of $0.15 per common share to be paid on September 17, 2014 to all shareholders of record as of the close of business on August 27, 2014. The ex-dividend date will be August 25, 2014.

Conference Call

Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss results from the first quarter of fiscal year 2015, ended July 4, 2014 and to review guidance. Interested parties may access the conference call on the Internet at http://www.symantec.com/invest. To listen to the live call, please go to the website 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.
About Symantec At Symantec Corporation (NASDAQ: SYMC), we protect your information wherever it’s stored, accessed or shared. Founded in April 1982, Symantec operates the largest civilian cyberintelligence threat network in the world. The company's more than 20,000 employees reside in more than 50 countries and are pioneering new solutions in growing markets like backup appliances, mobile, cloud, advanced threat protection, data loss prevention, and managed security services. Ninety-nine percent of Fortune 500 companies are Symantec customers. In fiscal 2014, it recorded revenues of $6.7 billion. To learn more go to www.symantec.com or connect with Symantec at: http://www.symantec.com/social/
Note to Editors: If you would like additional information on Symantec Corporation and its products, please visit the Symantec News Room at www.symantec.com/news. All prices noted are in U.S. dollars and are valid only in the United States.
Symantec and the Symantec Logo are trademarks or registered trademarks of Symantec Corporation or its affiliates in the U.S. and other countries. Other names may be trademarks of their respective owners.
FORWARD-LOOKING STATEMENTS: This press release contains statements regarding our financial and business results, which may be considered forward-looking within the meaning of the U.S. federal securities laws, including projections of future revenue, operating margin and earnings per share, as well as projections of amortization of acquisition-related intangibles and stock-based compensation and restructuring charges. These statements are subject to 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 in this press release. Such risk factors include those related to: general economic conditions; maintaining customer and partner relationships; the anticipated growth of certain market segments, particularly with regard to security and storage; the competitive environment in the software industry; changes to operating systems and product strategy by vendors of operating systems; fluctuations in currency exchange rates; the timing and market acceptance of new product releases and upgrades; the successful development of new products and integration of acquired businesses, and the degree to which these products and businesses gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. We assume no obligation, and do not intend, to update these forward-looking statements as a result of future events or developments. Additional information concerning these and other risks factors is contained in the Risk Factors sections of our Form 10-K for the year ended March 28, 2014.
USE OF NON-GAAP FINANCIAL INFORMATION: Our results of operations have undergone significant change due to the impact of stock-based compensation, charges related to the amortization of intangible assets, and certain other income and expense items that management considers unrelated to the Company’s core operations. 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. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management team uses these non-GAAP financial measures in assessing the Company’s operating results, as well as when planning, forecasting and analyzing 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 website at http://www.symantec.com/invest.