Symantec Announces Record Third Quarter Results
Strong Enterprise and Solid Consumer Sales Drive Growth
CUPERTINO, Calif. - Jan. 17, 2001 – Symantec Corp. (Nasdaq: SYMC), a world leader in Internet security technology, today announced the ninth consecutive quarter of record revenues and earnings. Strong sales in both the enterprise and the consumer markets contributed to net revenue of $219.3 million for the third fiscal quarter 2001, ended Dec. 29, 2000. The reported results include operating results from AXENT Technologies since the acquisition date of Dec. 18, 2000. Net revenue increased 18 percent over the same quarter a year ago. Individually, Symantec posted revenues of $211.4 million for the quarter and AXENT contributed $7.9 million of the quarter's revenue.
Earnings per share before all acquisition related amortization and one-time charges for the third quarter was $0.78, an increase of 39 percent from the December 1999 earnings per share of $0.56. Net income before acquisition related amortization and one-time charges for the third quarter was $51.4 million, 45 percent higher than the December quarter last year of $35.4 million. All figures exclude the results of operations from the company's divestiture of the Visual Café and ACT! product lines.
"We are pleased with the strong growth in our enterprise business," said John W. Thompson, Symantec chairman, president and CEO. "We are confident that Internet security will be one of the top priorities for consumers and enterprises alike in the coming year. With the addition of AXENT, Symantec offers a broad line of industry-leading solutions and services that protect customers from all types of security threats."
Revenues from Symantec's enterprise security products accounted for 52 percent of total revenues in the December quarter, up from 45 percent last quarter. Enterprise revenues grew 30 percent from the same quarter last year. AXENT revenues contributed 2 points to the mix this quarter.
Worldwide consumer business accounted for 48 percent of revenues in the December quarter. Retail growth was 7 percent compared to a year ago.
International revenues represented 46 percent of total revenue in the December quarter. Overall, the European region grew 19 percent, the Japanese region grew 29 percent and the Asia Pacific region grew 36 percent compared to the December quarter a year ago.
- Symantec completed the acquisition of AXENT Technologies, Inc. in a stock-for-stock exchange on Dec. 18, 2000.
- Symantec's carrier-grade solutions are gaining attention in the enterprise market. Sprint has chosen Symantec's desktop security products to protect the company's residential broadband customers. EarthLink offers a co-branded Symantec Security Check site for both PC and Macintosh users in addition to providing Symantec's firewall solutions to its DSL customers. I-Gear and Mail-Gear also now support Cobalt's line of servers. In addition, Symantec is integrating its CarrierScan Server with Oracle's Internet File System.
- Flagship accounts internationally are choosing Symantec's solutions over the competition. Symantec products are now protecting the Australian Tax Office, China Southern Airlines Company, Daimler Chrysler and Scandinavian Airlines.
- Symantec launched several new or updated versions of its consumer software for Apple Macintosh users including
Norton AntiVirus 7.0,
Norton Personal Firewall 1.0,
Norton Utilities 6.0,
Norton SystemWorks 1.0 and
Norton Internet Security 1.0.
- Symantec also launched the following enterprise solutions:
Norton AntiVirus Corporate Edition 7.5 and CarrierScan Server 2.0.
- According to the latest information from PC Data, seven of the top 20 best selling business software comes from Symantec including Symantec's Norton AntiVirus 2001 which ranked number one.
- Symantec products continue to receive awards and recognition. Symantec's Norton AntiVirus received its 12th 100% Award from Virus Bulletin. Symantec's Norton AntiVirus Corporate Edition received Information Security's West Coast Labs Check Mark Award.
Symantec's Norton Ghost received Network World's Blue Ribbon Award recognizing the best product in its class. Spanish publication "PC Actual" named Symantec's Norton SystemWorks 2001 Product of the Year in its Utilities category. Symantec's Norton Internet Security 2001 was named Product of the Year in its Internet Software category.
Symantec has scheduled a conference call for 4:30 p.m. EST today to discuss fiscal third quarter results. Interested parties may access the conference call on the Internet at
www.symantec.com/invest/. 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. Dial-in numbers have also been set up. The number for domestic listeners is 1-800-946-0712, while international listeners can dial 719-457-2641. The passcode for both numbers is "Symantec".
Consolidated Financial Statements
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.
NOTE TO EDITORS:
: If you would like additional information on Symantec Corporation and its products, please view the Symantec Press Center at http://www.symantec.com/PressCenter/ on Symantec's Web site. All prices noted are in US dollars and are valid only in the United States.
Symantec, the Symantec logo, VERITAS, and the VERITAS logo are trademarks or registered trademarks of Symantec Corporation or its affiliates in the United States and certain other countries. Additional company and product names may be trademarks or registered trademarks of the individual companies and are respectfully acknowledged.
FORWARD LOOKING STATEMENT: This press release contains forward-looking statements 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 risk that the Symantec and AXENT businesses will not be integrated successfully; the costs related to the merger; the difficulty of developing and marketing products that compete effectively with others and other economic, business, competitive and/or regulatory factors affecting Symantec's business generally. 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 the Company's previously filed Form 10-K for the year ended March 31, 2000 and Form 10-Q for the quarter ended September 29, 2000.
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