Symantec Updates Fiscal Fourth Quarter 2016 Guidance
April 28 2016 - 6:01AM
Business Wire
Symantec Corp. (NASDAQ:SYMC) today updated its fiscal fourth
quarter guidance, ended April 1, 2016. Symantec will release actual
results for the fiscal fourth quarter after the market closes on
May 12, 2016.
Revenue is now expected to be $873 million compared to previous
guidance of $885 to $915 million. A shift in enterprise security
customer buying preferences is resulting in less license revenue
during the quarter and more revenue being deferred to future
periods. This included a faster than expected shift within our
product mix to subscription and ratable contract structures.
The Company expects fourth quarter non-GAAP operating margins
and EPS of 25% and $0.22, below its previous guidance of 26% to 28%
and $0.24-$0.27. The shortfall is primarily a result of lower than
expected revenue, partially offset by a favorable impact from our
cost efficiency initiatives which have already begun across eight
different work streams.
“The shift to more ratable revenue is consistent with our
unified security strategy, as more customers are buying security
offerings that require continuous protection and monitoring to
remain up-to-date and protected against the latest threats," said
Michael A. Brown, CEO.
Fourth Quarter 2016 Guidance (Dollars in millions, except
EPS)
Q416
Updated Guidance
Q416
Previous Guidance
Revenue $873 $885-$915 Enterprise
Security $467 $480-$500 Consumer
Security $406 $405-$415 Non-GAAP
Operating Margin 25% 26%-28% Non-GAAP
EPS $0.22 $0.24-$0.27
The Company’s Financial Analyst Day, which was scheduled for May
26, 2016, will be postponed and rescheduled at a later date.
In a separate press release issued today, the Company announced
that Mr. Brown will be stepping down as President and CEO. Mr.
Brown will continue to serve as CEO and as a director of the
Company until a successor has been appointed.
Conference Call
Symantec will host a conference call at 8:00 am ET / 5:00 am PT
today. 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 the global leader in
cybersecurity. Operating one of the world’s largest cyber
intelligence networks, we see more threats, and protect more
customers from the next generation of attacks. We help companies,
governments and individuals secure their most important data
wherever it lives.
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 forward-looking statements regarding
our updated projected preliminary financial and business results,
projections of future revenue, operating margin and earnings per
share, as well as statements regarding the Company’s roadmap and
pipeline. 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 Company’s future
financial performance; general economic conditions; maintaining
customer and partner relationships; the competitive environment in
the software industry, fluctuations in tax rates and 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 section 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 litigation accruals, discontinued operations
including the gain on the sale of Veritas, 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 Symantec’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. 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. 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160428005753/en/
For Symantec Corp.:MediaKristen Batch,
503-516-6297kristen_batch@symantec.comorInvestorsJonathan
Doros, 650-527-5523jonathan_doros@symantec.com
Symantec (NASDAQ:SYMC)
Historical Stock Chart
From Apr 2024 to May 2024
Symantec (NASDAQ:SYMC)
Historical Stock Chart
From May 2023 to May 2024