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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