+DJ Symantec CEO Backs Fiscal Year EPS Guidance Of $1.55/Shr
12/04/2002
Dow Jones News Services
(Copyright © 2002 Dow Jones & Company, Inc.)
(MORE) DOW JONES NEWS 12-04-02
12:36 PM
=DJ Symantec CEO-2: Consumer,Enterprise Businesses Doing Well
By Riva Richmond
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Symantec Corp. (SYMC) Chief Executive John W. Thompson said the Internet-security software company is on track to meet its fiscal year earnings and revenue targets.
"Overall, the business is performing very well" on both the consumer and enterprise sides, he said, speaking Wednesday at a Credit Suisse First Boston investor conference in Scottsdale, Ariz. Meeting its targets for the fiscal year, which ends in March, "is clearly doable for us."
Symantec in October raised its fiscal-year earnings projections to $1.55 a share on revenue of $1.33 billion from $1.42 on revenue of $1.31 billion. It put fiscal third-quarter pro forma earnings at 38 cents a share on revenue of $335 million to $355 million.
Strong growth in the company's core consumer software business in recent quarters has been driven by generally increased awareness about computer security issues in recent years. It has also been aided by Symantec's moves to focus on security products and shed non-security products that were growing slowly.
Thompson said a long-term growth rate for the consumer business of 11% to 14% a year is "not unreasonable."
Asked about renewed efforts by rival Network Associates to gain share in the consumer market, Thompson said: "If George thinks I'm going to roll over.... he forgot how aggressively I know how to compete." Network Associates Chief Executive George Samenuk and Thompson were veteran managers at International Business Machines Corp., and former colleagues.
Thompson was derisive about original equipment manufacturer deals with Sony Corp. (SNE), Apple Computer Inc. (AAPL) and Dell Computer Inc. (DELL) that Network Associates told conference attendees about on Wednesday, as well as deals with Internet-service providers like AOL Time Warner Inc.'s (AOL) America Online.
"I'm in the business of selling software to make money," Thompson said, implying the deals were giveaways. "Don't confuse the press release and the ballyhoo with revenue or profit."
(MORE) DOW JONES NEWS 12-04-02
01:58 PM
=DJ Symantec CEO -3: Enterprise Sales Tracking To Plan >SYMC
Symantec's enterprise-security business "is tracking pretty much to plan," CEO Thompson said. He noted, however, that a large portion of enterprise software sales typically take place in December, the last month of the quarter. Penetrating the corporate market is the cornerstone of Symantec's high-stakes expansion plan and a major focus for investors.
Symantec aims to hold or gain share in the corporate antivirus arena and is "making a huge push" into the intrusion-detection market, he said. It is also working to scale up its security-services business, which has been showing triple digit growth, and get it to breakeven.
Thompson characterized intrusion detection as a key future growth market for the company. Symantec is now integrating the host-based and network-based intrusion-detection technologies it has acquired. A combined product will be ready in the first quarter of calendar 2003, he said.
In fact, the integration of technologies acquired during a recent buying binge is a major focus for the company now. Thompson said it has completed absorbed staff from its four major recent acquisitions and has moved on to integrating sales and marketing activities and product lines.
While Thompson said Symantec will do some deals this quarter, any purchases are apt to be aimed at customer, not technology, acquisition.
-Riva Richmond, Dow Jones Newswires; 201-938-5670; riva.richmond@dowjones.com
(END) DOW JONES NEWS 12-04-02
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