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