CUPERTINO, Calif. - April 28, 2004 - Symantec Corp. (Nasdaq: SYMC), the global leader in information security, today reported results for the fiscal fourth quarter and the fiscal year ended April 2, 2004. Symantec posted revenue for the quarter of $556 million, a 43 percent increase compared to $390 million for the same quarter last year. Revenue for fiscal year 2004 was $1.870 billion, a 33 percent increase compared to $1.407 billion for fiscal year 2003.
GAAP Results: Net income for the fiscal fourth quarter was $117 million, compared to $68 million for the same quarter last year. Earnings per share was $0.33, compared to earnings per share of $0.21 for the same quarter last year. For fiscal year 2004, Symantec reported net income of $371 million, compared to net income of $248 million for fiscal year 2003. Earnings per share was $1.07, compared to earnings per share of $0.77 for fiscal year 2003.
Non-GAAP Results:Non-GAAP net income for fiscal fourth quarter was $126 million, compared to $78 million for the same quarter last year. Non-GAAP earnings per share was $0.35, compared to earnings per share of $0.23 for the year-ago quarter. For fiscal year 2004, Symantec reported non-GAAP net income of $411 million, compared to $280 million in fiscal year 2003. Non-GAAP earnings per share was $1.18, compared to earnings per share of $0.86 for fiscal year 2003. Non-GAAP results and related reconciliation, as outlined in the attached consolidated statements, exclude expenses from the amortization of other intangibles from acquisitions, 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 execute on our vision of helping customers secure and manage their IT infrastructure, with last quarter's performance capping off a tremendously successful year," said John W. Thompson, Symantec chairman and CEO. "We are encouraged by the building momentum in the enterprise segment and, once again, the consumer segment turned in a stellar performance."
For the quarter, Symantec's worldwide enterprise business, including enterprise security, enterprise administration, and services represented 52 percent of total revenue and grew 29 percent year-over-year. Symantec's enterprise security business represented 38 percent of total revenue and grew 30 percent; the enterprise administration business represented 12 percent of total revenue and grew 26 percent; and the services represented 2 percent of total revenue and grew 32 percent compared to the same quarter last year. Symantec's consumer business represented 48 percent of total revenue and grew 62 percent year-over-year.
International revenues represented 53 percent of total revenue in the fourth quarter and grew 48 percent over the same quarter last year. Japan led the increase for the quarter with 66 percent growth, followed by Canada with 50 percent growth. The Europe, Middle East and Africa region recorded 48 percent growth, Asia Pacific recorded 36 percent growth and Latin America grew 12 percent. The United States grew 37 percent.
Symantec is raising forward-looking guidance for the fiscal first quarter ending July 2, 2004, as follows:
Symantec is raising forward-looking guidance for fiscal year 2005 ending April 1, 2005, as follows:
Non-GAAP forward-looking guidance for fiscal year 2005 excludes the pre-tax amortization of other intangibles from previous acquisitions of approximately $13 million per quarter, or $52 million for the entire fiscal year.
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 gross margin, operating expenses, operating income, net income and earnings per share exclude acquisition related charges, such as amortization of other intangibles 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, where applicable. 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 be found on the investor relations Web site at www.symantec.com/invest .
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.
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FORWARD LOOKING STATEMENT: This press release contains forward-looking statements, including forecasts of future revenue and 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; whether certain market segments, particularly enterprise security, grow as anticipated; the positioning of Symantec's products in those segments; the competitive environment in the software industry; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; 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 the degree to which these 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 previously filed Form 10-K and Form 10-Q.