Symantec Closes Fiscal Year 2008 with Record Revenue and Earnings
CUPERTINO, Calif. – April 30, 2008 – Symantec Corp. (Nasdaq: SYMC) today reported results of its fiscal fourth quarter and the fiscal year 2008, ended March 28, 2008. GAAP revenue for the March 2008 quarter was $1.540 billion and non-GAAP revenue was $1.548 billion, up 13 percent over the comparable period a year ago. For the fiscal year, GAAP revenue was $5.874 billion and non-GAAP revenue was $5.937 billion. On a non-GAAP basis, 2008 fiscal year revenue grew 13 percent compared to the 2007 fiscal year’s non-GAAP revenue of $5.253 billion.
GAAP operating margins for the March 2008 quarter were 13.9 percent and fiscal year 2008 GAAP operating margins were 10.3 percent. Non-GAAP operating margins for the March 2008 quarter were 27.8 percent, up 540 basis points year-over-year. Fiscal year 2008 non-GAAP operating margins were 26.6 percent, up approximately 100 basis points versus fiscal year 2007.
GAAP Results: GAAP net income for the fiscal fourth quarter was $186 million, compared to $61 million for the same quarter last year. GAAP diluted earnings per share were $0.22, compared to earnings per share of $0.07 for the same quarter last year. For fiscal year 2008, Symantec reported GAAP net income of $464 million, compared to net income of $404 million for fiscal year 2007. GAAP diluted earnings per share were $0.52, up 27 percent compared to earnings per share of $0.41 for fiscal year 2007.
Non-GAAP Results: Non-GAAP net income for fiscal fourth quarter was $309 million, compared to $227 million for the same quarter last year. Non-GAAP diluted earnings per share were $0.36, up 50 percent compared to earnings per share of $0.24 for the year ago quarter. For fiscal year 2008, Symantec reported non-GAAP net income of $1.127 billion, compared to $992 million in fiscal year 2007. Non-GAAP diluted earnings per share for the year were $1.27, up 26 percent compared to earnings per share of $1.01 for fiscal year 2007. For a detailed reconciliation of our GAAP to non-GAAP results, please refer to the attached consolidated financial statements.
GAAP deferred revenue at the end of March 2008 was $3.077 billion. Non-GAAP deferred revenue grew 11 percent to $3.088 billion compared to $2.772 billion at the end of March 2007.
Cash flow from operating activities for the March 2008 quarter was $674 million, compared to $567 million for the March 2007 quarter. Cash flow from operating activities for fiscal year 2008 was $1.819 billion, up 9 percent compared to $1.666 billion for fiscal year 2007.
“Our team executed very well across the board and made significant progress in selling the broader portfolio of products and services to customers,” said John W. Thompson, chairman and chief executive officer, Symantec. “With the strongest product portfolio we’ve had in years and a solid pipeline, we are well positioned for a strong start and continued success in fiscal year 2009.”
For the quarter, Symantec’s Storage and Server Management segment represented 37 percent of total non-GAAP revenue and grew 11 percent year-over-year. The Consumer business represented 29 percent of total non-GAAP revenue and grew 10 percent year-over-year. The Security and Compliance segment represented 28 percent of total non-GAAP revenue and grew 21 percent year-over-year. Services represented 6 percent of total non-GAAP revenue and grew 12 percent year-over-year.
International revenues represented 53 percent of total non-GAAP revenue in the March 2008 quarter and grew 15 percent year-over-year. The Europe, Middle East and Africa region represented 34 percent of total non-GAAP revenue for the quarter and grew 17 percent year-over-year. The Asia Pacific/Japan revenue for the quarter represented 15 percent of total non-GAAP revenue and grew 19 percent year-over-year. The Americas, including the United States, Latin America and Canada, represented 51 percent of total non-GAAP revenue and increased 10 percent year-over-year.
June Quarter 2008 Guidance
For the June 2008 quarter, ending July 4, 2008, GAAP revenue is estimated between $1.550 billion and $1.590 billion. GAAP diluted earnings per share are estimated between $0.17 and $0.19.
Non-GAAP revenue for the quarter is estimated between $1.555 billion and $1.595 billion. Non-GAAP diluted earnings per share are estimated between $0.34 and $0.36.
GAAP deferred revenue is expected to be in the range of $2.905 billion and $3.005 billion. Non-GAAP deferred revenue is expected to be in the range of $2.910 billion and $3.010 billion.
Cash flow from operations is expected to exceed the June 2007 result of $351 million.
- Symantec signed 449 agreements worldwide versus 391 in the same period a year ago with a contract value of more than $300,000 each. Of the 449 agreements, 115 had a value of more than $1 million each versus 101 in the same period a year ago. In the March 2008 quarter, almost 80 percent of the large deals were multiple product deals.
- Symantec signed new or extended agreements with customers includingtheWashington State Department of Information Services, which provides technology leadership for government agencies throughout Washington; AgFirst Farm Credit Bank, which provides funding and financial services for 23 farmer-owned financial cooperatives in 15 eastern states and Puerto Rico; Provincial Health Services Authority, one of six health authorities in British Columbia; CanadaCarestream Health, formerly Eastman Kodak Company’s Health Group; Qualcomm Incorporated, a leading developer and innovator of advanced wireless technologies and data solutions; Gerdau S/A, the world's 11th largest steelmaker and the largest producer of long steel in the Americas; MGM MIRAGE, an entertainment and development company with interest in more than 20 resort properties; LG N-Sys, a leading provider of systems and solutions in Korea; Sun Microsystems Ltd, the UK & Ireland division of the Global Technology Developer; and Ersel, the Italian financial services company specializing in portfolio management and stock brokerage.
Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss the results from the fiscal fourth quarter and fiscal year 2008 and to review guidance. Interested parties may access the conference call on the Internet at http://www.symantec.com/invest. To listen to the live call, please go to the Web site at least 15 minutes early to register, download, and install any necessary audio software. A replay and script of our officers’ remarks will be available on the investor relations’ home page shortly after the call is completed.
Symantec is a global leader in providing security, storage and systems management solutions to help businesses and consumers secure and manage 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 statements regarding our financial and business results, which may be considered forward-looking within the meaning of the U.S. federal securities laws, including statements relating to projections of future revenue, earnings per share, deferred revenue and cash flow from operations, as well as projections of amortization of acquisition-related intangibles and stock-based compensation and restructuring charges. These statements are subject to 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 in this press release. Such risk factors include those related to: maintaining customer and partner relationships; the anticipated growth of certain market segments, particularly with regard to security and storage; the competitive environment in the software industry; changes to operating systems and product strategy by vendors of operating systems; fluctuations in currency exchange rates; the timing and market acceptance of new product releases and upgrades; the successful development of new products and integration of 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 section of our Form 10-K for the year ended March 30, 2007.
USE OF NON-GAAP FINANCIAL INFORMATION: Our results of operations have undergone significant change due to a series of acquisitions, the impact of SFAS 123(R) and other corporate events. To help our readers understand our past financial performance and our future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Our non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release and which can be found, along with other financial information, on the investor relations page of our Web site at www.symantec.com/invest.
Symantec Corporation - Condensed Consolidated Balance Sheets (pdf)