Symantec Emerges from European Anti-Virus Market Consolidation as Leading Vendor in Retail
Independent research shows Symantec leads UK, German and French retail anti-virus markets
Cupertino, Calif,. - March 15, 1999 - Independent data for
anti-virus retail sales in Europe shows that Symantec (Nasdaq: SYMC) ended 1998 as the leading
vendor in the key markets of France, Germany and the UK.
According to research firm Chart-Track, Symantec's share of the UK anti-virus security retail market
grew consistently during the second half of the year to register 62 percent in units in December. In
France Symantec ended the year with 51 percent retail market share in units, according to research
firm GfK. And in the German consumer market, latest data from GfK credits Symantec with 49 percent
market share measured in revenue at the end of November.
"The European anti-virus market changed in 1998," says Dana Siebert, Symantec's executive vice
president worldwide sales, marketing and support. "Network Associates paid $640 million for Dr.
Solomon's to build market share. However, this data shows that instead they opened the market to
competition and we have capitalised."
Prior to its acquisition by Network Associates, Dr. Solomon's was Europe's dominant anti-virus
vendor with more than 50 percent retail market share in many of Europe's key markets.
According to Siebert, Symantec has gained market leadership by leveraging its Norton brand and
strong relationships with channel partners to take advantage of the demise of Dr Solomon's. "We have
not engaged in short term pricing tactics to win market share. Instead we continue to work in
partnership with the channel to drive mutual growth," he says.
Symantec's growth in the European retail anti-virus market, combined with the performance of other
new retail products such as Norton 2000 and Norton SystemWorks, has contributed to record
international revenue. The company's operations outside of the U.S.A. accounted for 40 percent of
the $165 million total revenue posted in the December 1998 quarter. Revenue generated by the Europe,
Middle East and Africa region was 28 percent of total revenue for the quarter - an increase of 38
percent from the same quarter a year ago.
The European anti-virus market was further consolidated in 1998 by Symantec's alliance with IBM and
purchase of Intel's anti-virus business. According to Siebert, Symantec's focus is to emulate its
retail success in the European corporate market.
"Symantec's worldwide corporate revenue is growing and in the December quarter represented 40
percent of worldwide revenue. This growth is being driven by our relationship with IBM and by taking
advantage of Dr Solomon's and Network Associates' corporate customers who view changes in the market
as an opportunity to re-evaluate their anti-virus provider. The purchase cycle is longer in the
corporate market. Leadership in the European retail sector is only half the battle. We are focusing
our attention on the corporate market as well," he says.
Chris Herbert, research director of UK-based market analyst Romtec-GfK Ltd. agrees: "The antivirus
market has been through an incredible amount of consolidation over the last year. Symantec's
acquisitions during 1998, with IBM and Intel, and the partnerships it has formed with Tivoli, act as
anchor points and provide the foundations required to ensure financial stability and technological
advancement to enable Symantec to increase its share of the corporate market while maintaining its
dominant position in the retail sector."
Symantec is the world leader in utility software for business and personal computing.
Symantec products and solutions help make users productive and keep their computers
safe and reliable anywhere and anytime. Symantec offers a broad range of solutions
and is acclaimed as a leader in both customer satisfaction and product brand
recognition. Symantec is traded on Nasdaq under the symbol SYMC. More information
on the company and its products can be obtained at www.symantec.com.
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