Symantec Reports Record Revenue Growth in Fiscal Second Quarter

Raises Fiscal Year Guidance

Hong Kong -- 21 October 2004 - Symantec Corp. (Nasdaq: SYMC), the global leader in information security, reported results for the fiscal second quarter ended 1 October 2004. Symantec posted revenue for the quarter of US$618 million, a 44 percent increase compared to US$429 million for the same quarter last year, driven by solid execution across all business segments and regions.

GAAP Results: Net income for the fiscal second quarter was US$136 million, compared to US$83 million for the same quarter last year. Earnings per share was US$0.38, a 58 percent increase compared to earnings per share of US$0.24 for the year-ago quarter.

Non-GAAP Results: Non-GAAP net income for the fiscal second quarter was US$146 million, compared to US$91 million for the same quarter last year. Non-GAAP earnings per share was US$0.41, a 52 percent increase compared to earnings per share of US$0.27 for the year-ago quarter. Non-GAAP results and related reconciliation, as outlined in the attached consolidated statements, exclude amortisation of other intangibles from acquisitions, amortisation of deferred stock-based compensation, acquired in-process research and development, restructuring charges, and patent settlement charges as well as related income tax benefits. See "Use of Non-GAAP Financial Information" below.

"We continue to gain momentum in our consumer and enterprise business segments as customers look for solutions to help them create a balance between the security and availability of their information assets," said John W. Thompson, Symantec chairman and CEO. "In addition, our international performance remains solid across all regions."

Revenue Components
For the quarter, Symantec's worldwide enterprise business, including enterprise security, enterprise administration, and services, represented 49 percent of total revenue and grew 29 percent year-over-year. Symantec's enterprise security business represented 36 percent of total revenue and grew 27 percent; the enterprise administration business represented 11 percent of total revenue and grew 36 percent; and the services business represented 2 percent of total revenue and grew 22 percent. Symantec's consumer business represented 51 percent of total revenue and grew 63 percent.

International revenues represented 52 percent of total revenue in the second quarter and grew 51 percent over the same quarter last year. The Americas, including the United States, Latin America, and Canada, grew 38 percent. The Europe, Middle East and Africa region recorded 52 percent growth and Japan/Asia Pacific grew 52 percent.

Business Outlook
Symantec is providing forward-looking guidance for the fiscal third quarter ending 31 December 2004, as follows:

• Revenue is estimated between US$645 million and US$665 million.
  
• At the mid-point of revenue guidance, GAAP earnings per share is estimated to be US$0.41.
  
• At the mid-point of revenue guidance, non-GAAP earnings per share is estimated to be US$0.43.

Symantec is raising forward-looking guidance for fiscal year 2005 ending 1 April 2005, as follows:

• Revenue is estimated to be US$2.495 billion, an increase of US$90 million from prior guidance.
  
• By business segment Symantec is estimating revenue growth for fiscal year 2005 as follows:
  • Enterprise Security 24% growth
  
  
  • Consumer Products 44% growth
  
  
  • Enterprise Administration 25% growth
  
  
  • Services 19% growth
    
• Deferred revenue is expected to be between US$1.30 billion and US$1.35 billion at the end of fiscal year 2005.
  
• GAAP earnings per share is estimated at US$1.54, an increase of US$0.06 from prior guidance.
  
• Non-GAAP earnings per share is estimated at US$1.64, an increase of US$0.07 from prior guidance.

Quarterly Highlights
During the quarter the total number of transactions worldwide worth more than US$100,000 each was 311, including 67 worth more than US$300,000 each and 10 worth more than US$1million each. Customers from the quarter included Park Nicollet Health Services, a nonprofit, integrated care system; StorageTek, a leading provider of enterprise information lifecycle management; and South Florida Water Management District, a regional, governmental agency that oversees water resources in the southern half of Florida.
 International customers from the quarter included TELCEL, the leading wireless operator in Mexico; PartnerRe Ltd., a leading international reinsurance group providing multi-line reinsurance to insurance companies on a worldwide basis; TelstraClear Limited, New Zealand's second largest full-service telecommunications company; iiNet, a leading Internet Service Provider in Australia and New Zealand; Alenia Spazio, a leading Italian aerospace company; All Nippon Airways Co., Ltd, a leading airline company in Japan; and Mitsui Sumitomo Insurance Company, Limited, one of the leading non-life insurance companies in Japan.

Conference Call
Symantec scheduled a conference call for 5 p.m. ET/2 p.m. PT on 21 October 2004 to discuss fiscal second quarter 2005 results, and to review guidance for the fiscal third quarter and fiscal year 2005. A replay and script of Symantec officers' remarks will be available on the investor relations' home page shortly.

About Symantec
Symantec is the global leader in information security providing a broad range of software, appliances and services designed to help individuals, small and mid-sized businesses, and large enterprises secure and manage their IT infrastructure. Symantec's Norton brand of products is the worldwide leader in consumer security and problem-solving solutions. Headquartered in Cupertino, California, Symantec has operations in more than 35 countries. More information is available at http://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 and the Symantec logo are trademarks or registered trademarks, in the United States and certain other countries, of Symantec Corporation. Additional company and product names may be trademarks or registered trademarks of the individual companies and are respectfully acknowledged.

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements, including forecasts of future revenue, deferred revenue and GAAP and non-GAAP earnings per share, expected industry patterns, and other financial and business results 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 sustainability of recent growth rates, particularly in consumer products; the anticipation of the growth of certain market segments, particularly enterprise security; the positioning of Symantec's products in those segments; the competitive environment in the software industry; general market conditions; fluctuations in currency exchange rates; changes to operating systems and product strategy by vendors of operating systems; and whether Symantec can successfully develop new products and integrate 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. Additional information concerning these and other risk factors is contained in the Risk Factors sections of Symantec's recently filed Form 10-Q. Symantec assumes no obligation to update any forward-looking information contained in this press release.

USE OF NON-GAAP FINANCIAL INFORMATION: In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Symantec reports non-GAAP financial results. Non-GAAP net income and earnings per share exclude acquisition related charges, such as amortization of other intangibles, amortization of deferred stock-based compensation and in-process research and development, and certain other identified charges, such as restructuring and patent settlement, as well as the tax effect of these items. Symantec's management believes these non-GAAP measures are useful to investors because they provide supplemental information that facilitates comparisons to prior periods. Management uses these non-GAAP measures to evaluate its financial results, develop budgets and manage expenditures. The method Symantec uses to produce non-GAAP results is not computed according to GAAP, is likely to differ from the methods used by other companies and should not be regarded as a replacement for corresponding GAAP measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which is attached to this release and can also be found on the investor relations Web site at www.symantec.com/invest/center.html.

SYMANTEC CORPORATION

GAAP Consolidated Statements of Income

* Share and per share amounts for the three and nine months ended December 31, 2003 retroactively reflect the two-for-one stock split effected as a stock dividend, which occurred on November 19, 2004. For the three and nine months ended December 31, 2004 and 2003, diluted net income per share is calculated using the if-converted method. Under this method, the numerator excludes the interest expense from the 3% convertible subordinated notes, net of income tax, of $1.2 million and $3.6 million for the three months ended December 31, 2004 and 2003, respectively, and $8.4 million and $10.8 million for the nine months ended December 31, 2004 and 2003, respectively, and the denominator includes shares issuable from the assumed conversion of the 3% convertible subordinated notes.

SYMANTEC CORPORATION

Non-GAAP Consolidated Statements of Income

Non-GAAP amounts exclude all acquisition related amortisation of intangibles and amortisation of deferred stock-based compensation, acquired IPR&D, patent settlement and restructuring charges.

* Share and per share amounts for the three and nine months ended December 31, 2003 retroactively reflect the two-for-one stock split effected as a stock dividend, which occurred on November 19, 2004. For the three and nine months ended December 31, 2004 and 2003, diluted net income per share is calculated using the if-converted method. Under this method, the numerator excludes the interest expense from the 3% convertible subordinated notes, net of income tax, of $1.2 million and $3.6 million for the three months ended December 31, 2004 and 2003, respectively, and $8.4 million and $10.8 million for the nine months ended December 31, 2004 and 2003, respectively, and the denominator includes shares issuable from the assumed conversion of the 3% convertible subordinated notes.

SYMANTEC CORPORATION

Reconciliation of Non-GAAP Gross Profit, Operating Expenses and Consolidated Statements of Income to the GAAP Gross Profit, Operating Expenses and Consolidated Statements of Income

SYMANTEC CORPORATION

Consolidated Balance Sheets