Feeds

Symantec hit by massive goodwill impairment

Okay-ish financial numbers otherwise

Beginner's guide to SSL certificates

Symantec announced moderately satisfying but recession-hit numbers for the full fiscal 2009 year, with the final quarter showing a revenue drop. A massive goodwill impairment charge of $7.4bn blew an enormous, non-cash hole into net income numbers for the full year and its final quarter.

Fourth quarter fiscal 2009 revenues were $1.47bn, a 4 percent drop from the year-ago quarter's $1.54bn.

Net income was a loss of $249m, quite a turnaround from the year-ago quarter's profit of $186m. This net loss included taking into account a non-cash goodwill impairment charge of $413m. This finalised a goodwill impairment analysis that began in the previous quarter.

Discounting the goodwill impairment, net income would have been $164m, an 11.8 percent decrease, with net income falling faster than revenues for the quarter.

Full year 2009 revenue was $6.15bn, a 4.2 percent increase compared to fy08's $5.9bn.

The net loss figures are staggering: the net loss was $6.7bn compared with net income of $464m for 2008.

It's important to note that this net loss includes a non-cash goodwill impairment charge of $7.4bn. Without that, net income would have been $700m, a 66 percent increase, which would have been very satisfying.

The company's statement was one of the strong-performance-but-for-recession type ones, with CFO James Beer saying: “Our continued focus on cost management enabled us to deliver better than expected earnings per share. In the midst of a challenging economic environment we delivered strong cash flow from operations, generating more than $1bn during the last two quarters.”

Within the overall results and using non-GAAP numbers, Symantec’s Storage and Server Management segment represented 36 percent of revenue and declined 4 percent year-over-year

The Consumer business, 30 percent of revenue, declined 1 percent year-over-year, holding up better. The Security and Compliance segment, 25 percent of revenue, declined 14 percent year-over-year. Services represented 9 percent of revenue and grew 27 percent year-over-year. That's the way to go.

Geographically EMEA stood out, as it, representing 30 percent of revenue, declined 13 percent year-on-year. The larger Americas region (55 percent) declined just 1 percent, as did Asia-Pacific. Possibly Symantec's EMEA boss is feeling somewhat pressured.

The forecast is for Q1fy10 revenue of $1.44bn - $1.5bn, and $0.09 - $0.11/share earnings.

All numbers are GAAP by the way, unless stated otherwise, and no currency changes have been taken into account. ®

Secure remote control for conventional and virtual 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
Be real, Apple: In-app goodie grab games AREN'T FREE – EU
Cupertino stands down after Euro legal threats
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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?
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.