Feeds

Symantec revenue hop can't stop profit flop

Restructuring costs cramp company coffers

The Power of One eBook: Top reasons to choose HP BladeSystem

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. ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
UK's emergency data slurp: IT giants panicked over 'legal uncertainty'
PM says rushed-through DRIP law will 'plug holes' in existing legislation
The final score: Gramophones 1 – Glassholes 0
My life according to a Google Arse
Doctor Who season eight scripts leak online
BBC asks fans to EXTERMINATE copies before they materialise
LG unfurls flexible SEE-THROUGH 18-inch display
Roll up, roll up for 60-inch telly scrolls by 2017
Report: UK.gov wants to legislate on comms data BEFORE next election
Ministerial alarm sets in over EU court's data retention ruling
IBM's $3bn bet on next-gen computers: Carbon nanotubes, neuro chips
Big Blue exec tells El Reg what to keep an eye on
Google Ventures opens new fund in London
El Reg has a new neighbour. So. Who's for a game of knock, knock, Ginger?
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
The Power of One Brief: Top reasons to choose HP BladeSystem
Download this brochure to find five ways HP BladeSystem can optimize your business with the power of one.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.