Symantec Revises First Quarter Outlook
Enterprise Strength Cannot Offset Weakness in Consumer Spending
CUPERTINO, Calif. - June 21, 2001 - Symantec Corp. (Nasdaq: SYMC) today announced that it is revising guidance for the first fiscal quarter, ending June 29, 2001, due to weak spending in the consumer and small business segments worldwide and negative foreign currency effects.
The company anticipates sales for its fiscal first quarter between $225 million to $235 million compared to prior guidance of $255 million to $263 million and compared to $225.4 million in the year ago period. The lowered sales forecast is expected to result in cash earnings per share between $0.39 and $0.47 as compared to the previous forecast of $0.62 to $0.67 and compared to $0.60 a year ago excluding acquisition related and one-time charges.
"While consumer spending has slowed worldwide this quarter, our products continue to maintain leading market share and are still profitable," said John W. Thompson, chairman, president and CEO of Symantec. "Although security spending is not recession-proof, we remain confident in the long-term health of the Internet security industry and continue to see strong order levels for our enterprise security solutions."
Symantec expects revenue for the September quarter to be flat in comparison with the June quarter. The company expects revenue for fiscal year 2002 to grow in the mid- to high-teens from $944.6 million in fiscal year 2001. Symantec will release actual results for the fiscal first quarter after the market closes on July 18.
Symantec will hold a conference call today at 2 p.m. PDT to discuss the revised guidance. The call will be available live via the Symantec Web site at www.symantec.com/invest. In addition, domestic callers can dial 888-855-5428 and international callers can dial 719-457-2665. The Web cast will be available until Friday, July 13.
Symantec, the Symantec logo, AXENT, AXENT Technologies, and the AXENT logo are trademarks or registered trademarks, in the United States and certain other countries, of Symantec Corporation or its subsidiaries. Additional company and product names may be trademarks or registered trademarks of the individual companies and are respectfully acknowledged.
Symantec, a world leader in Internet security technology, provides a broad range of content and network security solutions to individuals and enterprises. The company is a leading provider of virus protection, vulnerability assessment, intrusion prevention, Internet content and e-mail filtering, remote management technologies and security services to enterprises around the world. Symantec's Norton brand of consumer security products leads the market in worldwide retail sales and industry awards. Headquartered in Cupertino, Calif., Symantec has worldwide operations in 36 countries. For more information, please visit our Web site at www.symantec.com.
FORWARD LOOKING STATEMENT: This press release contains forward-looking statements, including statements regarding future technology and products, 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, new security threats, 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 fiscal year ended March 30, 2000.
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