Symantec: Fiscal 3Q08 Financial Results

Symantec Corp. reported the results of its third
quarter of fiscal year 2008, ended Dec. 28, 2007. GAAP revenue for the
quarter was $1.52 billion and non-GAAP revenue was $1.53 billion.
Non-GAAP revenue grew 15 percent versus the December 2006 period of
$1.33 billion.

GAAP deferred revenue as of Dec. 28, 2007 was $2.88 billion, up 12
percent compared to $2.56 billion on Dec. 29, 2006. Non-GAAP deferred
revenue as of Dec. 28, 2007 reached $2.9 billion, up 12 percent
compared to $2.58 billion on Dec. 29, 2006.

Cash flow from operating activities for the December 2007 quarter
was $462 million, compared to $454 million for the December 2006
quarter.

GAAP Results: GAAP net income for the December 2007 quarter
was $132 million, up 13 percent compared to $117 million in the
December 2006 quarter. Diluted earnings per share of $0.15 was up 25
percent compared to $0.12 for the same quarter last year.

Non-GAAP Results: Non-GAAP net income for the December 2007
quarter was $292 million, up 16 percent compared to $251 million for
the same quarter last year. Non-GAAP diluted earnings per share were
$0.33, up 27 percent compared to $0.26 for the same quarter last year.
For a detailed reconciliation of our GAAP to non-GAAP results, please
refer to the condensed consolidated financial statements below.

“The team’s continued focus on operational improvements and product
quality produced great results in the December quarter,” said John W.
Thompson, chairman and chief executive officer, Symantec. “I’m very
pleased with the strength of our business and our outlook for the March
quarter.”

Financial Highlights

For the quarter, Symantec’s Consumer segment represented 29 percent
of total non-GAAP revenue and grew 8 percent year-over-year. The
Security and Data Management segment represented 29 percent of total
revenue and grew 9 percent year-over-year. The Data Center Management
segment represented 29 percent of total revenue and grew 11 percent
year-over-year. Services represented 6 percent of total revenue and
grew 40 percent year-over-year. The Altiris segment, including revenues
from the acquisition of Altiris and Symantec’s Ghost, pcAnywhere and
LiveState Delivery solutions, represented 7 percent of total revenue.
The standalone Altiris solutions contributed a record $65 million in
non-GAAP revenue.

International revenues represented 53 percent of total non-GAAP
revenue in the December 2007 quarter and grew 21 percent
year-over-year. The Europe, Middle East and Africa region represented
35 percent of total revenue for the quarter and grew 26 percent
year-over-year. The Asia Pacific/Japan revenue for the quarter
represented 14 percent of total revenue and grew 19 percent
year-over-year. The Americas, including the United States, Latin
America and Canada, represented 51 percent of total revenue and
increased 8 percent year-over-year.

March 2008 Quarter Guidance

• For the March 2008 quarter, GAAP revenue is estimated between $1.50
  billion and $1.54 billion. Non-GAAP revenue for the March 2008 quarter
  is estimated between $1.51 billion and $1.55 billion.
• GAAP diluted earnings per share are estimated between $0.16 and
  $0.18. Non-GAAP diluted earnings per share are estimated between $0.33
  and $0.35.
• GAAP deferred revenue is expected to be in the range of $2.94
  billion and $3.04 billion. Non-GAAP deferred revenue is expected to be
  in the range of $2.95 billion and $3.05 billion.

Fiscal Year 2008 Guidance

• For the fiscal year ending March 28, 2008, GAAP revenue is estimated
  in the range of $5.835 billion to $5.875 billion. Non-GAAP revenue is
  estimated in the range of $5.90 billion to $5.94 billion.
• GAAP diluted earnings per share is estimated between $0.46 and
  $0.48. Non-GAAP diluted earnings per share is estimated between $1.24
  and $1.26.
• For the fiscal year 2008, cash flow from operating activities is
  expected to be greater than the $1.67 billion reported for fiscal year
  2007.

Quarterly Highlights

Symantec signed a record 554 contracts worldwide versus 409
contracts in the same period a year ago worth more than $300,000 each.
Improved sales execution led to the 35 percent increase in signed large
contracts from the same period a year ago. Of the 554 contracts, 127
contracts were worth more than $1 million each versus 115 contracts in
the same period a year ago. In the December 2007 quarter, almost 80
percent of our large deals were multiple product deals.
Symantec signed new or extended agreements with customers including The Coca-Cola System, one of the world’s largest manufacturers, distributors and marketers of nonalcoholic beverage concentrates and syrups; eBay Inc., the world’s online marketplace; Citizens Business Bank, an award-winning California commercial bank with 44 branches and more than $6 billion in assets; Czech Ministry of Finance; E.ON UK, part of one of the major public utility companies in Europe; CANTV, a publicly-owned telecommunications service provider in Venezuela; MTR Corp., serving 3.4 million railway passengers each weekday in Hong Kong; Informing Healthcare for Wales,
the Welsh Assembly Government program set up to improve health services
in Wales by introducing new ways of accessing, using and storing
information; TIVIT Tecnologia da Informacão S.A., a Brazilian company offering integrated information technology and business process outsourcing solutions; Rabobank Group,
a full-range financial services provider founded on cooperative
principles and a global leader in food and agricultural financing and
in sustainability-oriented banking; Suncorp Metway Ltd, a top 20 listed company in Australia with more than 8 million customers and 17,000 employees; Standard Chartered Bank,
the leading international bank in Asia, Middle East and Africa, with
wholesale and retail banking customers spread across the globe; and Serviço de Estrangeiros e Fronteiras, the Portuguese aliens and border security service.

Symantec Corp.