Symantec: Fiscal 1Q09 Financial Results

Symantec Corp. reported the results of its first quarter of fiscal year 2009, ended July 4, 2008. GAAP revenue for the quarter was $1.650 billion and non-GAAP revenue was $1.655 billion, up 16 percent over the comparable period a year ago.

GAAP Results: GAAP net income for the first quarter of fiscal year 2009 was $187 million, compared to $95 million for the same quarter last year. GAAP diluted earnings per share were $0.22, compared to earnings per share of $0.10 for the same quarter last year.

Non-GAAP Results: Non-GAAP net income for the first quarter of fiscal year 2009 was $342 million, up 30 percent compared to $263 million for the same quarter last year. Non-GAAP diluted earnings per share were $0.40, up 38 percent compared to earnings per share of $0.29 for the year ago quarter. For a detailed reconciliation of our GAAP to non-GAAP results, please refer to the attached condensed consolidated financial statements.

GAAP deferred revenue at the end of the quarter was $3.012 billion. Non-GAAP deferred revenue grew 12 percent to $3.025 billion compared to $2.709 billion at the end of the first quarter of fiscal year 2008.

Cash flow from operating activities for the first quarter of fiscal year 2009 was $414 million, up 18 percent compared to $351 million for the same quarter last year.

"The quarter’s strong growth was driven by our team’s ability to cross-sell and up-sell the breadth of our product portfolio which is reflected in the number of large transactions that include multiple products," said John W. Thompson, chairman and chief executive officer, Symantec. "The fiscal year is off to a terrific start with solid execution and performance across all segments and geographies."

Financial Highlights
For the quarter, Symantec’s Storage and Server Management segment represented 37 percent of total non-GAAP revenue and grew 20 percent year-over-year. The Consumer business represented 29 percent of total non-GAAP revenue and grew 12 percent year-over-year. The Security and Compliance segment represented 27 percent of total non-GAAP revenue and grew 12 percent year-over-year. Services represented 7 percent of total non-GAAP revenue and grew 35 percent year-over-year.

International revenues represented 52 percent of total non-GAAP revenue in the first quarter of fiscal year 2009 and grew 19 percent year-over-year. The Europe, Middle East and Africa region represented 34 percent of total non-GAAP revenue for the quarter and grew 20 percent year-over-year. The Asia Pacific/Japan revenue for the quarter represented 14 percent of total non-GAAP revenue and grew 20 percent year-over-year. The Americas, including the United States, Latin America and Canada, represented 52 percent of total non-GAAP revenue and increased 13 percent year-over-year.

Second Quarter Fiscal Year 2009 Guidance
For the second quarter of fiscal year 2009, ending Oct. 3, 2008, GAAP revenue is estimated between $1.520 billion and $1.560 billion. GAAP diluted earnings per share are estimated between $0.15 and $0.17.

Non-GAAP revenue for the quarter is estimated between $1.525 billion and $1.565 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 $2.865 billion and $2.965 billion. Non-GAAP deferred revenue is expected to be in the range of $2.875 billion and $2.975 billion.

Quarterly Highlights
Symantec signed 336 agreements worldwide versus 249 in the same period a year ago with a contract value of more than $300,000 each. Of the 336 agreements, 85 had a value of more than $1 million each versus 48 in the same period a year ago. In the first quarter of fiscal year 2009, nearly 80 percent of the large transactions included multiple products.

Symantec signed new or extended agreements with customers including Servizi Bancari Associati SpA, an Italian IT outsourcer that provides centralized IT services for more than 30 Italian national banks; the City of Cape Town; Rabobank, the Dutch-based financial services provider that operates on cooperative principles; TISCALI, an independent telecommunication company; CompSec, a leading provider of technology solutions for the intelligence community; Harris Corporation, an international communications and information technology company; Polkomtel, one of the three largest mobile operators in Poland; and SK Energy, a leading total energy provider in Korea.