Feeds

Symantec hit by massive goodwill impairment

Okay-ish financial numbers otherwise

Boost IT visibility and business value

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. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
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.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
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.