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. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
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.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.