Feeds

Symantec revenue hop can't stop profit flop

Restructuring costs cramp company coffers

Security for virtualized datacentres

Symantec closed fiscal 2007 with fourth quarter profit plummeting 49 per cent from the period a year earlier, but beating analyst expectations with a five per cent increase in revenue.

The company posted net income of $60.9m in the quarter which ended in March, compared with $119m last year.

Major increases in restructuring and marketing and sales costs are to blame for the profit pratfall. Symantec spent $50.8m in restructuring during the quarter, a major leap from $4m the same quarter the previous year. Sales and marketing wrote out $575.5m worth of checks this quarter compared to $444.7m last year.

Last quarter, Symantec reported plans to implement $200m worth of cuts to cope with flagging demands for its data center offerings.

Symantec's revenue, however, hit $1.365bn during the quarter, rising from $1.29bn the year before. This exceeded analysts' Magic 8 Balls which forecast revenue between $1.29bn to $1.35bn.

Excluding items, Symantec's revenues for the year were $5.2bn, up from $5bn way back in 2006.

CFO James Beer credited beating analyst predictions with increased demand for its software and favorable foreign exchange rates.

In the quarter, Symantec's security and data management business represented 38 per cent of total revenue, growing 2 per cent year-over-year. The company's data center management gig represented 27 per cent of total revenue, remaining flat from last year.

Symantec forecasts revenue between $1.28bn and $1.3bn for the June 2007 quarter. At the end of fiscal 2008, the company said revenue will likely be between $5.65bn and $5.75bn. Analysts see things ending up at $5.36bn. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.