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Symantec posts 2% revenue bump

i9Hnpvh2E6rUSymantec today reported the results of its first quarter of fiscal year 2014, ended June 28, 2013. GAAP revenue for the fiscal first quarter was $1.71 billion, up 2 percent year-over-year and up 3 percent after adjusting for currency.

“I’m proud of the team’s performance despite the ongoing work to right-size and transform the company. I’m also pleased that we delivered better than expected results,” said Steve Bennett, President and CEO, Symantec. “While the hard work is just beginning, I’m confident we have the right team in place to execute our multi-year roadmaps, implement our critical go-to-market changes and continue to make progress on our successful transformation.”

“We achieved better than expected results driven by strength in our backup, information security and endpoint security businesses,” said James Beer, Executive Vice President and CFO, Symantec. “During a period of planning and significant resource reallocation, we executed well and grew organic revenue by 3 percent. The magnitude of change we are undertaking is substantial and so as we move increasingly into the implementation phase of our transformation, we remain cautious on our outlook for the coming quarter.”

GAAP Results for the First Quarter of Fiscal Year 2014

  • GAAP operating margin was 13.1 percent compared with 15.0 percent for the same quarter last year.
  • GAAP net income was $157 million compared with net income of $160 million for the year-ago period.
  • GAAP diluted earnings per share were $0.22, flat compared to a year ago.
  • GAAP deferred revenue as of June 28, 2013, was $3.812 billion compared with $3.745 billion as of June 29, 2012, up 2 percent year-over-year and up 3 percent after adjusting for currency.
  • Cash flow from operating activities was $312 million compared with $340 million for the year ago period.

Non-GAAP Results for the First Quarter of Fiscal Year 2014

  • Non-GAAP operating margin was 25.3 percent compared with 24.9 percent for the same quarter last year, up 40 basis points year-over-year and up 36 basis points after adjusting for currency.
  • Non-GAAP net income was $308 million, compared to $297 million for the year-ago period, up 4 percent year-over-year.
  • Non-GAAP diluted earnings per share were $0.44, compared with $0.41 for the year-ago period, an increase of 7 percent.

Business Segment and Geographic Highlights for the Quarter

In alignment with our 4.0 strategy, we created three new business segments.  Below is a breakdown of our results by segments and geographies.

  • The User Productivity & Protection segment, which is comprised of endpoint security and management, encryption, and our mobile offerings, represented 43 percent of total revenue and declined 1 percent year-over-year (increased 1 percent after adjusting for currency) to $732 million.
  • The Information Security segment grew 7 percent year-over-year (9 percent after adjusting for currency) to $336 million.  This segment represented 20 percent of total revenue and includes Symantec’s security capabilities such as our mail & web security, authentication services, data center security, Managed Security Services (MSS), hosted security services, and Data Loss Prevention (DLP) businesses.
  • The Information Management segment represented 37 percent of total revenue and grew 4 percent year-over-year on an actual and currency adjusted basis to $641 million. This segment is comprised of offerings related to backup and recovery, information intelligence, which includes archiving and e-discovery, and information availability, which we previously referred to as storage management.
  • International revenue represented 51 percent of total revenue and increased 2 percent (4 percent after adjusting for currency).
  • The Europe, Middle East and Africa region represented 27 percent of total revenue and increased 8 percent year-over-year (6 percent after adjusting for currency).
  • The Asia Pacific/Japan revenue represented 18 percent of total revenue and decreased 5 percent year-over-year (increased 1 percent after adjusting for currency).
  • The Americas, including the United States, Latin America and Canada, represented 55 percent of total revenue and increased 3 percent year-over-year on an actual and currency-adjusted basis.
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