Here's a company that seems to get little respect. It's amazing how low there value has been and remains despite having great marketshare in basic PC software. Certainly, as asp's fall on PC's we'll see lots more boxes and lots more sales from these companies.
Regards, Mark
Symantec Corp (SYMC) 17 1/16 +2 15/16: developer of utility software reports fiscal Q4 net of $0.44 a share, in line with the First Call mean, vs yr-ago earnings of $0.40; revenue rose 12% to $175.6 million; see press release.....
Symantec Announces Record Fourth Fiscal Quarter and Fiscal Year 1999
PR Newswire - April 15, 1999 16:45
Corporate Revenue and International Performance Drive Growth
CUPERTINO, Calif., April 15 /PRNewswire/ -- Symantec Corporation (Nasdaq: SYMC) today announced that record corporate sales and strong international performance have resulted in record revenue of $175.6 million for the fourth quarter of fiscal 1999 ended April 2, 1999. This represents an increase of 12% or $19.5 million over the same quarter a year ago and 6% or $10.5 million over the previous quarter.
Net income before one time charges was $25 million compared to $24 million in the fourth quarter of fiscal 1998. Earnings per share before one time charges were $0.44 up from $0.40 in the same quarter a year ago. For the full fiscal 1999 year, revenues were $633.8 million, a 10% increase over fiscal year 1998. Earnings per share before one-time charges were $1.42 remaining flat compared to fiscal year 1998.
International revenue contributed $65.3 million, an increase of 21% over the fourth fiscal quarter of 1998. At $43.6 million, revenue from Symantec's Europe, Middle East and Africa (EMEA) region grew 27% over the fourth quarter of fiscal 1998.
The announcement of record fourth fiscal quarter results coincides with the appointment of John W. Thompson as President and CEO of Symantec Corporation on Wednesday, April 14, who commented: "Symantec serves both corporate customers and consumers on a foundation of best-of-breed products and excellent customer service and support. These results demonstrate that our strategy is succeeding and we're pleased to report them to our shareholders."
Corporate growth
Symantec grew corporate revenues to a record 42% of total revenue in the fourth fiscal quarter, an increase of 69% over the same quarter a year ago and 12% over the previous quarter.
Sales were strong across Symantec's entire family of corporate software solutions comprising Norton AntiVirus, Norton 2000, Norton Ghost and pcANYWHERE. New corporate customers include Bank Boston, ARAMARK and Commonwealth Edison.
Symantec continued to execute its strategy of providing customers with best-of-breed technology solutions and leveraging key partnerships with IBM, Intel and Tivoli. At the end of the fourth fiscal quarter, the company had gained commitments from virtually all of the former IBM AntiVirus customers in the U.S. and over 80% worldwide to transition to Norton AntiVirus. Symantec and IBM are now working with these customers to help them achieve a smooth and efficient migration to Norton AntiVirus.
During the fourth fiscal quarter Symantec completed the integration of the Norton AntiVirus engine and Intel's systems management technology and began transitioning the Intel LANDesk Virus Protect customer base to Norton AntiVirus.
Symantec also released Visual Cafe Enterprise Suite in the fourth fiscal quarter. The product is the first of a new generation of integrated development environments (IDEs) that enable companies to quickly build sophisticated server based enterprise applications in Java that leverage the Internet and corporate intranets and extranets. According to PC Data, Symantec has a 55% share of the retail Java tools market share in January and February.
Retail market leadership
Symantec maintained a leading position in major retail markets during the fourth fiscal quarter. According to PC Data, Norton AntiVirus continued to be the best-selling retail anti-virus product in the U.S. with 56% unit market share in January and February. Norton SystemWorks continued its leadership of the U.S. retail utility suite market with 72% unit market share in January and February (source: PC Data).
The breadth of Symantec's product offering was proven by the fact that the company had more products in the January and February PC Data Top 20 business software lists than any other vendor, including Microsoft. The top selling products were Norton AntiVirus, Norton SystemWorks, pcANYWHERE, WinFax PRO and Norton Utilities in both months.
In Europe, Symantec capitalized on consolidation in the utility software market over the last twelve months to overtake Dr. Solomon's as the leading retail vendor for anti-virus and to establish a leadership position in utility suites. In the UK Symantec's share of the retail anti-virus market in CY98 was 37%, representing growth of 48% over the previous year (source: Romtec-GFK). In the UK retail utility suite category, the company leads with 75% share in units (source: Romtec-GFK).
In Germany Norton AntiVirus leads with 31% retail unit market share (source: GFK). And in France, Norton AntiVirus and Norton SystemWorks lead with 48% and 81% revenue retail market share respectively (source: GFK).
During the fourth fiscal quarter Symantec continued to meet the needs of customers who prefer to buy software over the Internet either directly from Symantec or via one of the company's on-line reseller partners. E-business revenue grew 86% over the same quarter in 1998 and 18% over the previous quarter. The top selling products sold over the Internet were Norton AntiVirus, Norton Web Services, WinFax PRO, Norton Utilities and ACT!
Product Summary
Symantec delivered eight products in the quarter:
-- Norton SystemWorks 2.0 Standard and Professional Editions
-- Norton HelpDesk Assistant 1.0
-- Norton Utilities 4.0
-- Norton CleanSweep 4.5
-- Norton AntiVirus for OS/2
-- Norton AntiVirus Plus for Tivoli Enterprise and Tivoli IT Director
-- Visual Cafe Enterprise Suite
-- NAV Corporate Edition for Intel customers
Product Awards and Accolades
Symantec won more than 70 awards during the quarter including:
-- Norton AntiVirus and CleanSweep Deluxe received PC Magazine Best of
1998 Awards.
-- PC/Computing named Norton Utilities and ACT! to their MVP list of
products for 1998.
-- Windows Magazine named SystemWorks and Norton 2000 to its prestigious
WinList. Other Symantec products already on the WinList include:
Norton AntiVirus, Visual Cafe, WinFax, pcANYWHERE, Norton Mobile
Essentials, Ghost, and ACT!
-- Norton AntiVirus won Best Buy Awards from PC World and SC Magazine.
-- Government Computer News awarded Norton 2000 the Reviewer's Choice
award. The product also received the Best New Product award at FOSE.
-- TalkWorks Pro, WinFax Pro, and ACT! all received 1998 Product of the
Year awards from CTI Magazine.
-- Visual Cafe received InfoWorld's 1998 Product of the Year award and
Network Computing's Editor's Choice award.
Forward looking statement
This press release contains forward-looking statements. There are certain important factors that could cause Symantec's future development efforts to differ materially from those anticipated by some of the statements made above. Among these are the anticipation of the growth of certain market segments, the positioning of Symantec's products in those segments, the competitive environment in the software industry, dependence on other products, changes to operating systems and product strategy by vendors of operating systems, and the importance of new Symantec products. Additional information concerning those and other factors is contained in the "Risk Factors" section of the company's annual report on Form 10-K for the fiscal year ended April 3, 1998 and in the company's quarterly report Form 10-Q for the third fiscal quarter ended January 1, 1999.
About Symantec
Symantec is the world leader in utility software for business and personal computing. Symantec products and solutions help make users productive and keep their computers safe and reliable anywhere and anytime. Symantec offers a broad range of solutions and is acclaimed as a leader in both customer satisfaction and product brand recognition. Symantec is traded on Nasdaq under the symbol SYMC. More information on the company and its products can be obtained at www.symantec.com.
SYMANTEC CORPORATION Consolidated Balance Sheets
March 31, March 31,
(In thousands) 1999 1998
(Unaudited)
ASSETS
Current assets:
Cash and short-term
investments $192,755 $225,883
Trade accounts receivable 76,386 65,158
Inventories 5,677 3,175
Deferred income taxes 28,155 19,677
Other 12,790 14,646
Total current assets 315,763 328,539
Long-term investments 4,270 34,258
Restricted investments 71,405 59,370
Equipment and leasehold
improvements 52,887 50,030
Capitalized software 37,209 1,470
Goodwill 75,224 --
Other 6,018 2,793
$562,776 $476,460
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $45,862 $34,171
Accrued compensation and benefits 20,788 21,332
Other accrued expenses 131,219 64,532
Income taxes payable 18,339 24,634
Current portion of convertible subordinated
debentures -- 8,333
Total current liabilities 216,208 153,002
Convertible subordinated debentures and other -- 5,951
Long-term obligations 1,455 --
Total long-term liabilities 1,455 5,951
Stockholders' equity:
Preferred stock -- --
Common stock 569 571
Capital in excess of par value 315,698 310,949
Notes receivable from stockholders (144) (144)
Retained earnings 48,100 18,690
Accumulated other comprehensive income (loss) (19,110) (12,559)
Total stockholders' equity 345,113 317,507
$562,776 $476,460
Note: The consolidated balance sheet at March 31, 1999 has been
restated to reflect in-process research and development adjustments for
IBM and Binary.
SYMANTEC CORPORATION
Consolidated Statements of Operations
Three months ended Twelve months ended
Mar. 31, Mar. 31, Mar. 31, Mar. 31,
(In thousands, except 1999 1998 1999 1998
per share data) (unaudited)(unaudited)(unaudited)
Net revenues $175,575 $156,092 $633,783 $578,361
Cost of revenues 28,450 21,531 96,558 87,431
Gross margin 147,125 134,561 537,225 490,930
Operating expenses:
Research and development 26,420 24,253 101,563 91,332
Sales and marketing 73,932 70,095 286,144 261,190
General and administrative 8,030 10,500 34,722 38,063
Intangible amortization
from acquisitions 3,240 -- 6,405 --
Total operating expenses 111,622 104,848 428,834 390,585
Operating income before
in-process research and
development, restructuring
and other expenses 35,503 29,713 108,391 100,345
Interest income 2,395 3,702 13,552 13,160
Interest expense (713) (321) (1,839) (1,218)
Other income (expense) (36) (911) 2,464 (190)
Income before income taxes,
in-process research and
development, restructuring and
other expenses 37,149 32,183 122,568 112,097
Provision for income taxes
before in-process research
and development, restructuring
and other expenses 11,888 8,045 39,222 27,008
After-tax income before
in-process research and
development, restructuring
and other expenses $25,261 $24,138 $83,346 $85,089
In-process research and
development, restructuring
and other expenses $740 $-- $39,395 $--
Tax benefit from in-process
research and development,
restructuring and other
expenses (237) -- (6,250) --
Net income $24,758 $24,138 $50,201 $85,089
After-tax income per share
before in-process research
and development, restructuring
and other expenses - diluted $0.44 $0.40 $1.42 $1.42
Net income per share - basic $0.44 $0.43 $0.89 $1.52
Net income per share - diluted $0.43 $0.40 $0.86 $1.42
Shares used to compute after-tax
income per share before
in-process research and
development, restructuring
and other expenses - diluted 58,071 -- 59,289 --
Shares used to compute basic net
income per share 56,381 56,714 56,601 56,097
Shares used to compute diluted
net income per share 58,071 60,997 59,289 60,281
NOTE: The three and twelve months ended March 31, 1999 have been restated to reflect IPR&D adjustments for Binary and IBM.
SOURCE Symantec Corporation
/NOTE TO EDITORS: If you would like additional information on Symantec
Corporation and its products, view the Symantec Press Center at
www.symantec.com/PressCenter/ on Symantec's Website./
/CONTACT: investor relations, Shelley Wilson of Symantec Corporation,
408-446 8891, or swilson@symantec.com; or media, Erin McCauley of Symantec
Corporation, 408-446 7192, or emccauley@symantec.com; or Eric DeRitis of
Miller Shandwick Technologies, 650-596 5800, or ederitis@miller.shandwick.com,
for Symantec/
/Web site: symantec.com
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