Press Releases

Symantec Reports Third Quarter Fiscal Year 2017 Results

  • Q3 GAAP revenue met, GAAP operating margin and EPS exceeded prior guidance; Q3 Non-GAAP revenue, operating margin, and EPS exceeded prior guidance on constant currency basis
  • Company exceeds revenue, operating margin, and EPS guidance for second quarter in a row
  • Integrated Cyber Defense Platform winning with Enterprise customers; Acquisition of LifeLock will create new Consumer Digital Safety Platform
  • Increasing financial outlook for fiscal year 2017

MOUNTAIN VIEW, Calif.--( BUSINESS WIRE )--Symantec Corp. (NASDAQ:SYMC) today reported its third quarter of fiscal year 2017 results, ended December 30, 2016.

Greg Clark, Symantec CEO, said, "We're very pleased by our third quarter performance as it shows clear evidence that Symantec's transformation is producing results and delivering innovation to our customers in the cloud generation. Our Integrated Cyber Defense Platform is resonating with enterprise customers and we closed important wins that underscore the unmatched value of our threat intelligence and the depth of our cloud security stack. We expect to see new momentum in our consumer business with the release of Norton Core, a favorite at CES this year. When joined with LifeLock, we will have created a new Digital Safety Platform to protect consumers' digital lives and identities."

Nick Noviello, Symantec CFO, said, "Our third quarter results exceeded our constant currency revenue, operating margin, and EPS guidance. In just two quarters since combining Symantec and Blue Coat we are tracking ahead of schedule on product integrations, cost savings and synergies. We are pleased to be increasing our fiscal year 2017 financial outlook."

Results for the Third Quarter of Fiscal Year 2017 (Dollars in millions, except EPS)
 

 

3Q17

3Q16

Reported Y/Y
Change

FX Adjusted Y/Y
Change

GAAP

Revenue

$1,041

$909

15%

14%

Operating Margin

(1.5%)

16.1%

(1,760) bps

(1,830) bps

Net Income

$46

$170

(73%)

N/A

EPS (Diluted)

$0.07

$0.25

(72%)

N/A

CFFO*

$144

$112

29%

N/A

Non-GAAP

Revenue

$1,088

$909

20%

19%

Operating Margin

30.4%

27.9%

250 bps

190 bps

Net Income

$209

$172

22%

N/A

EPS (Diluted)

$0.32

$0.26

23%

N/A

* Cash Flow from Operating Activities

Fourth Quarter 2017 Guidance (Dollars in millions, except EPS and FX rate)

 
 

4Q17

FX Adj. Y/Y Growth

GAAP

Revenue

$1,039 - $1,059

20% - 23%

Enterprise Security

$655 - $671 41% - 45%

Consumer Security

$384 - $388 (4%) - (3%)

Operating Margin

1% - 3% N/A

EPS

($0.02) - $0.00

N/A

Non-GAAP

Revenue

$1,070 - $1,090 24% - 26%
Enterprise Security $686 - $702 48% - 51%
Consumer Security $384 - $388 (4%) - (3%)

Operating Margin

27% - 29% N/A

EPS (Diluted)

$0.27 - $0.29 N/A

Non-GAAP Tax Rate

29% N/A

Basic Share Count

615 million N/A

GAAP Fully Diluted Share Count

615 million N/A

Non-GAAP Fully Diluted Share Count

658 million N/A

FX Rate ($/€)

$1.05 N/A

Symantec's Board of Directors has declared a quarterly cash dividend of $0.075 per common share to be paid on March 15, 2017, to all shareholders of record as of the close of business on February 20, 2017. The ex-dividend date will be February 16, 2017.

The company will hold an investor day in San Francisco on June 8, 2017. Details of the event will be shared at a future date.

Conference Call

Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss its third quarter fiscal 2017 results, ended December 30, 2016 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 website at least 15 minutes early to register, download and install any necessary audio software. For telephone access to the conference, call (877) 475-6198 within the United States or (970) 297-2372 from outside the United States. Please call 15 minutes early on February 1 and give the operator conference ID number 51063618.

A replay and our prepared remarks will be available on the investor relations home page shortly after the call is completed.

About Symantec

Symantec Corporation (NASDAQ: SYMC), the world's leading cyber security company, helps organizations, governments and people secure their most important data wherever it lives. Organizations across the world look to Symantec for strategic, integrated solutions to defend against sophisticated attacks across endpoints, cloud and infrastructure. Likewise, a global community of more than 50 million people and families rely on Symantec's Norton suite of products for protection at home and across all of their devices. Symantec operates one of the world's largest civilian cyber intelligence networks, allowing it to see and protect against the most advanced threats. For additional information, please visit www.symantec.com or connect with us on Facebook, Twitter, and LinkedIn.

NOTE TO EDITORS: If you would like additional information on Symantec Corporation and its products, please visit the Symantec News Room at http://www.symantec.com/news .

Symantec, the Symantec Logo and the Checkmark logo are trademarks or registered trademarks of Symantec Corporation or its affiliates in the U.S. and other countries. Other names may be trademarks of their respective owners.

Forward-Looking Statements: This press release contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws, including statements regarding our projected financial and business results, including Symantec's expected business momentum in its consumer segment, Symantec's transformation, including changes to products and services following the proposed acquisition of LifeLock, and Symantec's cost reduction, integration and synergy efforts. 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: the potential impact on the businesses of LifeLock and Symantec due to uncertainties in connection with the acquisition; the retention of employees of acquired companies and the ability of Symantec to successfully integrate acquired companies and to achieve expected benefits; general economic conditions; fluctuations and volatility in Symantec's stock price; the ability of Symantec to successfully execute strategic plans; the ability to maintain customer and partner relationships; our company's leadership transition plan; anticipated growth of certain market segments; our sales pipeline and business strategy; fluctuations in tax rates and currency exchange rates; the timing and market acceptance of new product releases and upgrades; and 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. Symantec assumes no obligation, and does not intend, to update these forward-looking statements as a result of future events or developments. Additional information concerning these and other risk factors is contained in the Risk Factors sections of Symantec's Form 10-K for the fiscal year ended April 1, 2016 and the Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016.

USE OF NON-GAAP FINANCIAL INFORMATION: Our results of operations have undergone significant change due to the impact of purchase accounting on revenue and cost of revenue on Blue Coat products, certain acquisition and integration costs, discontinued operations, stock-based compensation, restructuring, transition and separation matters, charges related to the amortization of intangible assets, and certain other income and expense items that management considers unrelated to the Company's core operations. 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 including constant currency information. 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. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management team uses these non-GAAP financial measures in assessing Symantec's operating results, as well as when planning, forecasting and analyzing 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 website at: http://www.symantec.com/invest.

Symantec Reports Third Quarter Fiscal Year 2017 Results

Contacts

Symantec Corp.

MEDIA CONTACT:
Kristen Batch, 650-527-5152
Kristen_Batch@symantec.com

or

INVESTOR CONTACT:
Jonathan Doros, 650-527-5523
Jonathan_Doros@symantec.com