Feeds

Symantec braces for economic downturn

Precautionary $7bn hit helps boost share price

Top 5 reasons to deploy VMware with Tegile

Symantec's operating profits beat Wall Street forecasts, but the firm still recorded a $6.8bn third quarter loss because of write-downs.

The company reported a third-quarter loss of $6.8bn compared to a profit of $132m in the same quarter last year. Sell fell slightly by 0.1 percent to $1.51bn in the the three months running up to 2 January 2009. It was pushed into the red after it took a $7bn charge, equivalent to two-thirds of the goodwill on its books.

Symantec's Veritas line of storage software can help in cost-saving server virtualisation projects, while its line of security software is seen as a necessary business expense even in tough economic times, up to a point. Deferment of e-commerce projects and the like is a factor that's likely to lead to a slowdown in enterprise sales of Symantec's security technology.

The security and compliance (enterprise security) segment of Symantec's business represented 26 percent of sales, but declined five percentage points year on year. By contrast the consumer security segment grew two percentage point to make up 29 per cent of the pie. Storage and server sales rose one percentage point to make up 37 per cent of revenues.

Unlike many technology firms, Symantec's sales expectations for the next three months were in line with analyst estimates at between $1.47bn and $1.52bn, helping its shares to rise three per cent on Wednesday to close at $14.63.

A statement on Symantec's results can be found here. ®

Beginner's guide to SSL certificates

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Vodafone to buy 140 Phones 4u stores from stricken retailer
887 jobs 'preserved' in the process, says administrator PwC
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.