Feeds

Symantec revenue hop can't stop profit flop

Restructuring costs cramp company coffers

Internet Security Threat Report 2014

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. ®

Remote control for virtualized desktops

More from The Register

next story
BIG FAT Lies: Porky Pies about obesity
What really shortens lives? Reading this sort of crap in the papers
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
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?
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.