Symantec posted a profit of $136 million, down from $155 million. But the results beat forecasts.
Data storage and security provider Symantec revealed its fiscal
second-quarter earnings results Oct. 27, reporting that its profits
dipped 12 percent due mostly to higher costs related to sales and
In the quarter ending Sept. 30, Symantec posted a profit of $136
million, or 17 cents/share, down from $155 million, or 19 cents/share,
from the same quarter a year ago. Revenue was flat at $1.48 billion.
Nonetheless, Symantec stock prices increased by 7 percent in
after-hours trading Oct. 27 to about $17 for two main reasons: first,
because the results beat the company's conservative forecast, and
secondly because of the company's new Q3 earnings forecast of 32 cents
cents a share, based on revenue of $1.57 billion to $1.59 billion.
Back in July, Symantec had predicted earnings of 27 cents to 28 cents
on revenue of $1.45 billion to $1.47 billion, below Wall Street's
projections at the time. Thomson Reuters' survey of analysts had
forecast 32 cents and $1.46 billion.
"Our new e-commerce platform completed its first anniverary of
operations with installations in 230 countries in 18 languages, and it
supports 24 currencies. Overall, our enterprise business closed the
quarter on a very strong note," Symantec CFO James Beer said on the
earnings conference call to analysts and journalists.
"Our ability to develop more targeted programs is benefitting renewals,
as well as our up-selling and cross-selling efforts. We also had good
results around our backup and archiving and our hosted services."
Sales of security software--both in enterprise and in the consumer
realm--have remained brisk despite the continuing macroeconomic
slowdown, because keeping viruses and hackers out of a system remains a