CUPERTINO, CA, May 31, 2006 -- At its annual financial analyst meeting today in San Mateo, Calif., Symantec Corp. (NASDAQ: SYMC) updated its existing full-year fiscal 2007 guidance to reflect the upcoming change in its revenue recognition model that the company outlined on its last earnings call on May 9, 2006.
In its May 9 earnings call, the company gave preliminary guidance that its projected revenue for fiscal 2007 operating results could be lower by approximately $200 million, as a result of certain changes to its revenue recognition model. The company has now determined that these changes are expected to impact fiscal 2007 operating results by $100 million, which will generate a corresponding increase of $100 million in deferred revenue.
Based on these adjustments, the company now expects GAAP revenue of between $5.1 to $5.3 billion, which excludes approximately $55 million in deferred revenue as a result of the Veritas merger. Non-GAAP revenue is expected to be between $5.2 to $5.4 billion, which includes the approximately $55 million of deferred revenue from the Veritas merger.
GAAP EPS for fiscal 2007 is expected to be between $0.41 and $0.52. Non-GAAP EPS for fiscal 2007 is expected to be between $1.00 and $1.10. Non-GAAP EPS excludes approximately $555 million in expenses related to the amortization of acquisition-related intangibles and stock-based compensation charges, net of estimated income taxes. Both EPS ranges reflect a decrease of approximately $0.05 relative to the guidance ranges provided on the company's most recent earnings call, due to the changes in the revenue recognition model noted above.
A webcast, replay, and podcast of all presentations at the Symantec Analyst Day will be available on the company's investor relations website at www.symantec.com/invest within 24 hours of the event.
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 STATEMENTS: This press release contains forward-looking statements regarding our financial and business results, including statements relating to projections of future revenue and earnings per share, and projections of deferred revenue, amortization of acquisition-related intangibles and deferred compensation changes. Such forward-looking statements 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 in or implied by this press release, including, among others: whether we can successfully develop new products and the degree to which these gain market acceptance; the sustainability of recent growth rates, particularly in consumer products; the anticipation of the growth of certain market segments; the positioning of our products in those segments; the competitive environment in the software industry; general market conditions; acquisition-related risks; fluctuations in currency exchange rates; and changes to operating systems and product strategy by vendors of operating systems. Additional information concerning these and other risk factors is contained in the Risk Factors section of our Form 10-Q for the quarter ended December 31, 2005. We assume 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. A principal difference between this information and GAAP financial information is that our non-GAAP information excludes amortization of all acquisition-related intangibles, restructuring charge and certain stock-based compensation expenses. In addition, our combined non-GAAP financial results include the historical results for Symantec and Veritas for comparative fiscal periods, deferred revenue that has been eliminated from our GAAP results as part of the purchase accounting for the acquisition of Veritas, and adjustments related to the fair value of the assets acquired and liabilities assumed as part of the acquisition, and exclude certain non-GAAP expenses, net of tax. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which can be found on the investor relations website at www.symantec.com/invest.