Symantec Storage Sales Issues Led to Flat Quarter

By Chris Preimesberger  |  Posted 2010-07-28 Print this article Print

Storage management and security software provider Symantec reports that net income for its fiscal first quarter was $161 million, up substantially over the net of $74 million for the year-ago quarter, but its revenue was flat.

Symantec, which provides storage management and security software for IT systems, bucked a trend of sorts on July 28 when it reported plateaued financial results for its fiscal first quarter of 2010.

Symantec reported revenue for the fiscal first quarter of $1.43 billion, which is flat when compared with the same period a year ago.

Net income, however, was $161 million for the fiscal first quarter, up substantially over the net of $74 million for the same quarter in 2009.

Nonetheless, the stock price was down about 8 percent, or $1.20, to $13.48 in after-hours trading on July 28.

Due largely to the continuing need for companies and individuals to add data storage capacity to handle the exponential increase in content, the trend among storage companies for several years has been to report comfortable profit increases each quarter. This is especially true of market leaders EMC and NetApp and the storage divisions of Hewlett-Packard and IBM.

Symantec President and CEO Enrique Salem confirmed that the storage side of the house was the one that had some issues this quarter.

"This quarter, we saw lengthening of procurement cycles driven by continued cautiousness among IT buyers. In particular, this affected our storage management results," Salem said.

"We are optimistic about the strength we saw in the public sector as well as with our data loss prevention solutions. In addition, our software-as-a-service offerings posted double-digit growth as we continue to expand our leadership in this high-growth market."

Symantec completed the acquisitions of PGP and GuardianEdge in early June. The acquisitions generated quarterly revenue of $4 million, the company reported.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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