Symantec: Fiscal 3Q13 Financial Results

Symantec Corp. reported the results of its third quarter of fiscal year 2013, ended Dec. 28, 2012.

GAAP revenue for the fiscal third quarter was $1.79 billion, up 4% year-over-year and up 5% after adjusting for currency.

"We continue to deliver better than expected results," said Steve Bennett, president and CEO, Symantec. "I’m so proud of our employees. These types of results don’t happen by accident. The fact that we can deliver these results in a period of significant transition and uncertainty is a testament to our employees, the strength of our brand, the quality of our products and the scope of our customer base."

"Strength in EMEA, information management and license revenue drove our FX adjusted organic revenue growth of 4%," said Jim Beer, EVP and CFO, Symantec. "Our better than expected top line growth coupled with disciplined expense management drove non-GAAP operating margins of 25.6% even as we are investing in certain areas to better serve our customer needs."

GAAP Results for third quarter of fiscal year 2013

• GAAP operating margin was 16.6% compared with 17.5% for the same quarter last year, down 90 basis points year-over-year.
• GAAP net income was $212 million compared with net income of $240 million for the year-ago period, down 12% year-over-year.
• GAAP diluted earnings per share were $0.30 compared with $0.32 for the year ago quarter, down 6% year-over-year.
• GAAP deferred revenue was $3.806 billion compared with $3.665 billion for the year ago quarter, up 4% year-over-year on an actual and currency-adjusted basis.
• Cash flow from operating activities was $463 million compared with $403 million for the year ago period, up 15% year-over-year.

Symantec ended the quarter with cash, cash equivalents and short-term investments of $4.25 billion. During the quarter, it repurchased 11 million shares for $200 million at an average price of $17.94. It has $283 million remaining in the current board authorized stock repurchase plan.

Non-GAAP Results for third quarter of fiscal year 2013

• Non-GAAP operating margin was 25.6% compared with 26.2% for the same quarter last year, down 60 basis points year-over-year and down 80 basis points after adjusting for currency, due to increased investment in certain areas to better serve our customer needs
• Non-GAAP net income was $313 million compared to $314 million for the same quarter last year.
• Non-GAAP diluted earnings per share were $0.45 compared with earnings per share of $0.42 for the year-ago quarter, up 7% year-over-year.

Business Segment Highlights for the Quarter

• Consumer segment represented 30% of total revenue and increased 1% year-over-year (increased 2% after adjusting for currency).
• Security and Compliance segment represented 29% of total revenue and increased 3% year-over-year (increased 4% after adjusting for currency).
• Storage and Server Management segment represented 37% of total revenue and increased 8% year-over-year (increased 9% after adjusting for currency).
• Services represented 4% of total revenue and increased 10% year-over-year (increased 9% after adjusting for currency).

Geographic Highlights for the Quarter

• International revenue represented 52% of total revenue and increased 6% year-over-year (increased 8% after adjusting for currency).
• The EMEA region represented 28% of total revenue and increased 6% year-over-year (increased 10% after adjusting for currency).
• AsiaPac/Japan revenue represented 19% of total revenue and increased 7% year-over-year (increased 6% after adjusting for currency).
• The Americas, including the United States, Latin America and Canada, represented 53% of total revenue and increased 3% year-over-year on an actual and currency-adjusted basis.