MOUNTAIN VIEW, Calif. - August 11, 2015 - Symantec Corp. (NASDAQ: SYMC) today reported the results of its first quarter of fiscal year 2016, ended July 3, 2015.
Michael A. Brown, president and CEO, said, "We made encouraging progress in several product segments, achieving growth in our enterprise security business for the first quarter in two years. However, our revenue was flat in Q1, adjusting for currency and an extra week in the June 2014 quarter. Reaching a definitive agreement to sell Veritas marks an important inflection point for Symantec. With a strong product pipeline of more than a dozen enterprise security products on track to be released this year, Symantec is now focused on extending its lead as the world's largest cybersecurity company."
Thomas Seifert, executive vice president and CFO, said, "The $8 billion sale price for Veritas delivers a certain and attractive valuation, and simplifies the separation process. We remain committed to returning significant cash to shareholders, by announcing an increase to our share repurchase authorization to $2.6 billion. We also intend to maintain our dividend at 15 cents per common share, which represents an increased and attractive payout ratio for a company of Symantec's size post-separation."
Results for the First Quarter of Fiscal Year 2016 (Dollars in millions, except EPS)
|
|
1Q16
|
1Q15
|
Reported Y/Y
Change
|
FX Adjusted
Y/Y Change
|
FX and 14th Week
Adjusted Y/Y Change
|
|
GAAP
|
|
Revenue
|
$1,499
|
$1,735
|
(14%)
|
(7%)
|
0%
|
|
Operating Margin
|
13.4%
|
18.6%
|
(520) bps
|
(230) bps
|
N/A
|
|
Net Income
|
$117
|
$236
|
(50%)
|
N/A
|
N/A
|
|
Deferred Revenue
|
$3,419
|
$3,713
|
(8%)
|
(1%)
|
(1%)
|
|
EPS (Diluted)
|
$0.17
|
$0.34
|
(50%)
|
N/A
|
N/A
|
|
CFFO
|
$300
|
$293
|
2%
|
N/A
|
N/A
|
|
Non-GAAP
|
|
Operating Margin
|
27.4%
|
24.6%
|
280 bps
|
480 bps
|
N/A
|
|
Net Income
|
$275
|
$313
|
(12%)
|
N/A
|
N/A
|
|
EPS (Diluted)
|
$0.40
|
$0.45
|
(11)%
|
N/A
|
N/A
|
Second Quarter and Fiscal Year 2016 Guidance (Dollars in millions, except EPS and FX rate)
|
|
2Q16
|
FY16
|
|
GAAP
|
|
Revenue
|
$1,485 - $1,525
|
$6,210 - $6,350
|
|
Operating Margin
|
13.0% - 15.0%
|
14.5% - 15.5%
|
|
EPS (Diluted)
|
$0.19 - $0.22
|
$0.86 - $0.96
|
|
Non-GAAP
|
|
Operating Margin
|
26.0% - 28.0%
|
29.0% - 30.0%
|
|
EPS (Diluted)
|
$0.40 - $0.43
|
$1.80 - $1.90
|
|
Tax Rate
|
24.0%
|
27.5%
|
|
Share Count
|
690 million
|
694 million
|
|
FX Rate (€/$)
|
$1.11
|
$1.13
|
Symantec's Board of Directors has declared a quarterly cash dividend of $0.15 per common share to be paid on September 16, 2015 to all shareholders of record as of the close of business on August 26, 2015. The ex-dividend date will be August 24, 2015.
Symantec's Board of Directors has also authorized an increase to its share repurchase program to $2.6 billion.
In a separate press release, Symantec announced a definitive agreement to sell its information management business, Veritas, to a group of investors led by The Carlyle Group for $8 billion. The deal is expected to close by January 1, 2016.
Conference Call
Symantec has scheduled a conference call for 8:30 a.m. ET/5:30 a.m. PT today to discuss its first quarter of fiscal year 2016 results, ended July 3, 2015 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. 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) is an information protection expert that helps people, businesses and governments seeking the freedom to unlock the opportunities technology brings -- anytime, anywhere. Founded in April 1982, Symantec, a Fortune 500 company, operating one of the largest global data-intelligence networks, has provided leading security, backup and availability solutions for where vital information is stored, accessed and shared. The company's more than 19,000 employees reside in more than 45 countries. Ninety-nine percent of Fortune 500 companies are Symantec customers. In fiscal 2015, it recorded revenues of $6.5 billion. To learn more go to
www.symantec.com or connect with Symantec at:
http://www.symantec.com/social/
Symantec and the Symantec 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 regarding our financial and business results and our proposed divestiture of our Veritas business, which may be considered forward-looking within the meaning of the U.S. federal securities laws. These include statements regarding the anticipated closing of the Veritas sale, as well as projections of future revenue, operating margin and earnings per share, amortization of acquisition-related intangibles, stock-based compensation, and restructuring, separation and transition 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: the satisfaction of the conditions to closing of the Veritas divestiture; general economic conditions; risks related to the proposed divestiture of Veritas; 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. We assume no obligation, and do not intend, to update these forward-looking statements as a result of future events or developments. Additional information concerning these and other risks factors is contained in the Risk Factors sections of our Form 10-K for the year ended April 3, 2015.
Use of Non-GAAP Financial Information
Our results of operations have undergone significant change due to the impact of stock-based compensation, charges related to the amortization of intangible assets, and certain other income and expense items that management considers unrelated to Symantec's core operations, including restructuring, separation and transition costs. 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. 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.