Gen Digital 8K Symantec Closes Fiscal Year 2006 with Solid March Quarter | GEN 9 May 06

EXHIBIT 99.1

News Release


FOR IMMEDIATE RELEASE
MEDIA CONTACT:		INVESTOR CONTACT:
Genevieve Haldeman		Helyn Corcos
Symantec Corporation		Symantec Corporation
408-517-7642		408-517-8324
glhaldeman@symantec.com		hcorcos@symantec.com

Symantec Closes Fiscal Year 2006 with Solid March Quarter

Driven by Demand for Email Archiving, Compliance, Storage, and Norton Internet Security

CUPERTINO, Calif. — May 9, 2006 —Symantec Corp. (Nasdaq: SYMC) today reported results for the fiscal fourth quarter and the fiscal year ended March 31, 2006. GAAP revenue for the March 2006 quarter was $1.24 billion and non-GAAP revenue was $1.30 billion. Non-GAAP revenue includes $61 million of deferred revenue that has been eliminated from GAAP results as part of the purchase accounting associated with the acquisition of VERITAS Software Corporation. Non-GAAP revenue grew one percent over the combined Symantec and Veritas revenue for the March 2005 quarter of $1.29 billion.

For the 2006 fiscal year, GAAP revenue was $4.14 billion and non-GAAP revenue was $5.00 billion. Non-GAAP revenue for the fiscal year includes $302 million of deferred revenue that has been eliminated from GAAP results as part of the purchase accounting associated with the acquisition of VERITAS as well as $559 million in historic VERITAS revenue for the quarter ended March 31, 2005. On a non-GAAP basis, 2006 fiscal year revenue grew eight percent compared to the 2005 fiscal year’s combined non-GAAP revenue of $4.62 billion.

GAAP Results:GAAP net income for the fiscal fourth quarter was $119 million, compared to $120 million for the same quarter last year. Earnings per share were $0.11, compared to earnings per share of $0.16 for the same quarter last year. For fiscal year 2006, Symantec reported net income of $157 million, compared to net income of $536 million for fiscal year 2005. Earnings per share were $0.15, compared to earnings per share of $0.74 for fiscal year 2005.

Non-GAAP Results:Non-GAAP net income for fiscal fourth quarter was $279 million, compared to $314 million for the same quarter last year. Non-GAAP earnings per share were $0.26, compared to earnings per share of $0.26 for the year-ago quarter. For fiscal year 2006, Symantec reported non-GAAP net income of $1.14 billion, compared to $1.05 billion in fiscal year 2005. Non-GAAP earnings per share for the year were $1.00, compared to earnings per share of $0.86 for fiscal year 2005.

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Symantec Closes Fiscal Year 2006 with Solid March Quarter
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Non-GAAP results, as presented in the attached consolidated financial statements, exclude certain GAAP expenses, net of tax, and include the results of operations of VERITAS for the applicable periods, including adjustments based on the fair values of assets acquired and liabilities assumed as of the acquisition date of July 2, 2005, and deferred revenue that was eliminated as a result of purchase accounting for the VERITAS acquisition.

“By staying focused on execution, the worldwide Symantec team delivered a solid fiscal fourth quarter,” said John W. Thompson, Symantec chairman and chief executive officer. “Performance in all segments and regions was quite strong during the quarter, driven by solid demand for our email archiving, storage and compliance solutions as well as Norton Internet Security. In addition, our enterprise and consumer antivirus segments performed well in a stable pricing environment.”

Revenue Components

For the quarter, Symantec’s enterprise security business represented 22 percent of total revenue and grew nine percent year-over-year on a combined non-GAAP basis year-over-year. Services revenue represented four percent of total revenue and grew 16 percent year-over-year. The storage management segment represented 23 percent of total revenue and grew two percent year-over-year. The data protection segment comprised 23 percent of total revenue and declined eight percent. Symantec’s consumer business represented 28 percent of total revenue and held steady on a combined non-GAAP basis year-over-year.

International revenues for the March quarter represented 50 percent of non-GAAP revenue and grew five percent on a combined non-GAAP basis over the same quarter last year. Asia Pacific/Japan revenue for the quarter represented 13 percent of total revenue and grew nine percent on a combined non-GAAP basis year-over-year. The Europe, Middle East, and Africa region represented 32 percent of total revenue for the quarter and grew three percent year-over-year. The Americas, including the United States, Latin America, and Canada, represented 55 percent of total revenue and declined two percent year-over-year.

June Quarter Forecast

For the June 2006 quarter, GAAP revenue is estimated between $1.20 billion and $1.23 billion. This excludes $25 million of deferred revenue that was lost through the purchase accounting for the VERITAS transaction. GAAP fully diluted earnings per share for the June quarter are estimated between $0.05 and $0.07.

Non-GAAP revenue for the June quarter is estimated between $1.22 billion and $1.25 billion, including about approximately $25 million of deferred revenue. Non-GAAP fully diluted earnings per share are forecasted between $0.20 and $0.21, excluding approximately $145 million of expenses related to the amortization of acquisition-related intangibles and deferred compensation charges, net of estimated income taxes.

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Symantec Closes Fiscal Year 2006 with Solid March Quarter
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Fiscal Year 2007 Forecast

For the fiscal year ending March 2007, GAAP revenue is estimated in the range of $5.2 billion to $5.4 billion, excluding about $55 million in lost deferred revenue from the VERITAS merger. GAAP fully diluted earnings per share for the fiscal year ending in March 2007 are estimated between $0.46 and $0.57.

Non-GAAP revenue is estimated in the range of $5.3 billion to $5.5 billion, including about $55 million in deferred revenue from the VERITAS merger. Non-GAAP fully diluted earnings per share are estimated between $1.05 and $1.15, excluding approximately $555 million in expenses related to the amortization of acquisition-related intangibles and stock-based compensation charges, net of estimated income taxes.

Quarterly Highlights

	•		Symantec signed 1,142 contracts worldwide worth more than $100,000 each, including 91 worth more than $1 million each, during the quarter. Nearly 50 percent of these deals included multiple Symantec enterprise products and services.

	•		Symantec signed new or extended agreements with the following customers includingAscendsys Sdn Bhd, a leading Malaysian-based security services provider;AXA Australia, one of the largest financial services organizations in the world;City of Miami Beach, a prominent South Florida city government;First Data Corporation,one of the world’s leading providers of financial, electronic-transaction services and solutions;Guaranty Bank, a full-service federal savings bank headquartered in Milwaukee, Wisconsin;Hutchison Telecoms,which provides mobile telecommunications and multimedia services to more than one million Australian customers;ING Canada, one of Canada’s foremost financial services companies;New Century Mortgage Corp., one of the America’s premier mortgage finance companies;Reynolds & Reynolds, a $1 billion software and automotive services organization;Sprint Nextel Corporation,an industry leader in telecommunications product and service delivery;The City of Jacksonville, the city government of America’s 14^th largest city.

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Symantec Closes Fiscal Year 2006 with Solid March Quarter
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Conference Call

Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss fiscal fourth quarter and fiscal year 2006 results, and to review guidance for the fiscal first quarter 2007. Interested parties may access the conference call on the Internet athttp://www.symantec.com/invest/index.html. To listen to the live call, please go to the Web site at least 15 minutes early to register, download, and install any necessary audio software. A replay and script of our officers’ remarks will be available on the investor relations’ home page shortly after the call is completed.

About Symantec

Symantec is the world leader in providing solutions to help individuals and enterprises assure the security, availability, and integrity of their information. Headquartered in Cupertino, Calif., Symantec has operations in more than 40 countries. More information is available atwww.symantec.com.

###

NOTE TO EDITORS:If you would like additional information on Symantec Corporation and its products, please visit the Symantec News Room athttp://www.symantec.com/news. All prices noted are in US dollars and are valid only in the United States.

Symantec and the Symantec Logo are trademarks or registered trademarks of Symantec Corporation or its affiliates in the U.S. and other countries. Other names may be trademarks of their respective owners.

FORWARD LOOKING STATEMENTS:This press release contains statements regarding our financial and business results which may be considered forward-looking within the meaning of the U.S. federal securities laws, including statements relating to projections of future revenue and earnings per share for the first quarter and year of fiscal 2007, and projections of deferred revenue, amortization of acquisition related intangibles and deferred compensation charges. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include those related to: the acquisition of VERITAS, including the successful integration of VERITAS’ businesses, maintenance of customer and partner relationships and leveraging of synergies; the anticipated growth of certain market segments, particularly the enterprise security and international markets; the competitive environment in the software industry; changes to operating systems and product strategy by vendors of operating systems; fluctuations in currency exchange rates; the timing and market acceptance of new product releases and upgrades; the successful development of new products and integration of acquired businesses, and the degree to which these products and businesses gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. Additional information concerning these and other risk factors is contained in the Risk Factors section of Symantec’s Form 10-Q for the quarter ended December 31, 2005. Symantec assumes no obligation to update any forward-looking information contained in this press release.

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Symantec Closes Fiscal Year 2006 with Solid March Quarter
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USE OF NON-GAAP FINANCIAL INFORMATION:In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Symantec reports non-GAAP financial results. All references to “combined non-GAAP” financial information for pre-acquisition periods include the results of Symantec and VERITAS for like fiscal quarters (i.e., combining the results of Symantec for the March 2005 fiscal quarter with the results of VERITAS for the December 2004 fiscal quarter) and have been adjusted to exclude certain expenses, net of tax, and include adjustments based on the fair values of assets acquired and liabilities assumed as of the acquisition date of July 2, 2005 and deferred revenue that was eliminated as a result of purchase accounting for the VERITAS acquisition. Symantec’s management believes the non-GAAP measures used in this release are useful to investors because they provide supplemental information that facilitates comparisons to prior periods. Management uses these non-GAAP measures to evaluate its financial results, develop budgets and manage expenditures. The method Symantec uses to produce non-GAAP results is not computed according to GAAP, may differ from the methods used by other companies and should not be regarded as a replacement for corresponding GAAP measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which is attached to this release. Additional information regarding the reconciliation, along with additional pro forma financial information, can be found on the investor relations page of Symantec’s Web site, along with additional pro forma financial information for the combined company, atwww.symantec.com/invest/center.html.

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SYMANTEC CORPORATION
Consolidated Balance Sheets
(In thousands, except per share data)


	March 31,
	2006			2005
	(unaudited)
ASSETS
Current assets:
Cash and short-term investments	$	2,865,802		$	3,206,587
Trade accounts receivable, net		670,937			285,325
Inventories		48,687			19,118
Current deferred income taxes		148,968			97,279
Other current assets		190,673			79,973

Total current assets		3,925,067			3,688,282
Property and equipment, net		946,217			382,689
Acquired product rights, net		1,238,511			127,619
Other intangible assets, net		1,440,873			30,739
Goodwill		10,331,045			1,365,213
Other long-term assets		37,053			19,679

	$	17,918,766		$	5,614,221

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Convertible subordinated notes	$	512,800		$	—
Accounts payable		167,135			74,685
Accrued compensation and benefits		277,170			140,543
Current deferred revenue		1,915,179			1,215,537
Other accrued expenses		185,882			91,033
Income taxes payable		454,753			179,225

Total current liabilities		3,512,919			1,701,023
Long-term deferred revenue		248,273			114,724
Long-term deferred tax liabilities		464,187			88,613
Other long-term obligations		24,916			4,408
Stockholders’ equity:
Common stock		10,409			7,105
Capital in excess of par value		12,426,690			2,412,947
Accumulated other comprehensive income		146,810			191,938
Deferred stock-based compensation		(43,595	)		(21,070	)
Retained earnings		1,128,157			1,114,533

Total stockholders’ equity		13,668,471			3,705,453

	$	17,918,766		$	5,614,221

SYMANTEC CORPORATION
GAAP Consolidated Statements of Operations
(In thousands, except per share data)


	Three Months Ended					Year Ended
	March 31,					March 31,
	2006			2005		2006			2005
	(unaudited)			(unaudited)		(unaudited)
Net revenues	$	1,238,560		$	712,678	$	4,143,392		$	2,582,849
Cost of revenues:
Cost of revenues		194,385			110,026		667,579			403,215
Amortization of acquired product rights		88,769			11,105		314,290			48,894

Cost of revenues		283,154			121,131		981,869			452,109
Gross profit		955,406			591,547		3,161,523			2,130,740
Operating expenses:
Sales and marketing		440,713			227,329		1,486,590			843,724
Research and development		198,549			90,277		664,628			332,266
General and administrative		69,892			33,646		221,412			115,419
Amortization of other intangible assets from acquisitions		50,347			1,760		148,822			5,416
Amortization of deferred stock-based compensation		9,459			2,844		37,962			4,524
Acquired in-process research and development		1,100			—		285,100			3,480
Restructuring		4,426			—		24,918			2,776
Integration planning		587			3,494		15,926			3,494
Patent settlement		—			375		2,200			375

Total operating expenses		775,073			359,725		2,887,558			1,311,474
Operating income		180,333			231,822		273,965			819,266
Interest and other income, net		21,508			16,670		106,754			51,185
Interest expense		(3,650	)		—		(17,996	)		(12,323	)

Income before income taxes		198,191			248,492		362,723			858,128
Provision for income taxes		79,378			128,810		205,871			321,969

Net income	$	118,813		$	119,682	$	156,852		$	536,159

Net income per share — diluted*	$	0.11		$	0.16	$	0.15		$	0.74

Shares used to compute net income per share — diluted*		1,064,293			738,413		1,025,856			738,245

* For the twelve months ended March 31, 2005, diluted net income per share is calculated using the if-converted method. Under this method, the numerator excludes the interest expense from the 3% convertible subordinated notes, net of income tax, of $8.4 million for the twelve months ended March 31, 2005, and the denominator includes shares issuable from the assumed conversion of the 3% convertible subordinated notes.

SYMANTEC CORPORATION
Reconciliation of Consolidated Statements of Operations to Non-GAAP Statements of Operations
(In thousands, except per share data)
(Unaudited)


	Three Months Ended March 31, 2006										Three Months Ended March 31, 2005
	GAAP			Non-GAAP							GAAP						Non-GAAP
	Symantec			Adjustments				Non-GAAP			Symantec*		VERITAS**				Adjustments				Non-GAAP
Financial Statement Information
Net revenues(1)	$	1,238,560		$	61,307		A	$	1,299,867		$	712,678	$	574,435		H	$	—			$	1,287,113
Cost of revenues:
Cost of revenues(1)		194,385							194,385			110,026		82,473		H		(901	)	D		192,402
														(246	)	J
														901		K
														(52	)	L
														201		M
Amortization of acquired product rights(1)		88,769			(88,769	)	B		—			11,105		7,328		H		(83,256	)	B		—
														(7,328	)	I
														72,151		N

Total cost of revenues(2)		283,154			(88,769	)			194,385			121,131		155,428				(84,157	)			192,402
Gross profit(2)		955,406			150,076				1,105,482			591,547		419,007				84,157				1,094,711
Operating expenses:
Sales and marketing (1)		440,713			(298	)	C		440,415			227,329		163,307		H		—				389,475
														(1,502	)	J
														(28	)	L
														369		M
Research and development (1)		198,549			(1,466	)	C		197,083			90,652		95,569		H		—				184,895
														(1,516	)	J
														(58	)	L
														248		M
General and administrative (1)		69,892			(3,477	)	C		66,415			33,646		50,775		H		—				83,955
														(59	)	J
														(540	)	L
														133		M
Amortization of other intangible assets from acquisitions(1)		50,347			(50,347	)	B		—			1,760		3,009		H		(48,524	)	B		—
														(3,009	)	I
														46,764		N
Amortization of deferred stock-based compensation (1)		9,459			(9,459	)	D		—			2,844		4,733		K		(7,577	)	D		—
Acquired in-process research and development (1)		1,100			(1,100	)	B		—			—		—				—				—
Restructuring (1)		4,426			(4,426	)	E		—			—		—				—				—
Integration planning (1)		587			(587	)	F		—			3,494		—				(3,494	)	F		—
Patent settlement		—							—			—		375				(375	)	Q		—

Total operating expenses(2)		775,073			(71,160	)			703,913			359,725		358,570				(59,970	)			658,325

Operating income(2)		180,333			221,236				401,569			231,822		60,437				144,127				436,386
Interest and other income, net (1)		21,508							21,508			16,670		17,421		H		—				34,091
Interest expense (1)		(3,650	)						(3,650	)		—		(6,242	)	H		—				(8,753	)
														(2,511	)	O
Gain on strategic investments		—							—			—		2,009		H		(2,009	)	R		—

Income before income taxes (2)		198,191			221,236				419,427			248,492		71,114				142,118				461,724
Provision for income taxes (1)		79,378			61,269		G		140,647			128,810		56,093		H		(11,074	)	G		147,752
														(26,077	)	G

Net income (2)	$	118,813		$	159,967			$	278,780		$	119,682	$	41,098			$	153,192			$	313,972

Net income per share:
Diluted (2)	$	0.11						$	0.26		$	0.16									$	0.26
Shares used to compute net income per share:
Diluted (1)		1,064,293							1,064,293			738,413		430,989								1,222,931		P

NOTES:

The above information reflects the combined results of Symantec Corporation (“Symantec”) and VERITAS Software Corporation (“VERITAS”), including amounts related to the amortization of fair value adjustments of assets acquired and liabilities assumed by Symantec as of the actual acquisition date of July 2, 2005. For comparative purposes, the information presented assumes that the acquisition took place on April 1, 2004. If the acquisition had taken place on April 1, 2004, the fair values of the assets and liabilities would have been different and actual results of operations would have been different from those presented above.

Additional non-GAAP adjustments consist of: non-cash charges related to acquisitions, such as the amortization of intangibles and stock-based compensation expense, and the write-off of in-process research and development; restructuring charges; integration planning costs; and the impact of other special items, such as other stock-based compensation expense, litigation matters, gain/loss on investments and related adjustments to provision for income taxes on our operating results. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

(*) The results of operations include our results for the three months ended March 31, 2005.

(**) The results of operations include VERITAS’ historical results for the three months ended December 31, 2004, including amortization related to fair value adjustments based on the fair values of assets acquired and liabilities assumed as of the acquisition date of July 2, 2005.

Footnotes:

(2)Symantec’s management refers to these non-GAAP financial measures, such as non-GAAP operating margins and net income, in making operating decisions because the measures provide meaningful supplemental information regarding our operational performance and our ability to invest in research and development and fund acquisitions and capital expenditures. In addition, these non-GAAP financial measures facilitate management’s internal comparisons to our historical operating results and comparisons to competitors’ operating results. Investors are encouraged to review the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as provided herein.


A		To include VERITAS’ deferred revenue that was excluded as a result of adjustments to fair value.
B		To exclude non-cash charges of amortization of acquired product rights, amortization of other intangible assets and the write-off of acquired in-process research and development.
C		To exclude executive incentive bonuses related to the VERITAS acquisition, executive sign-on bonuses and executive recruitment fees.
D		To exclude amortization of deferred stock-based compensation.
E		To exclude charges relating to restructuring.
F		To exclude the Symantec and VERITAS integration planning costs.
G		To adjust the provision for income taxes to reflect the effect of the non-GAAP adjustments on net income (loss).
H		To include VERITAS’ historical results of operations for the three months ended December 31, 2004.
I		To eliminate VERITAS’ historical amortization of developed technology, other intangible assets and the write-off of in-process research and development.
J		To eliminate VERITAS’ historical amortization of deferred stock-based compensation.
K		To amortize deferred stock-based compensation related to the VERITAS acquisition.
L		To amortize VERITAS’ lease obligation in excess of fair value.
M		To record additional depreciation expense on VERITAS’ property and equipment as a result of the adjustment to fair value.
N		To amortize acquired product rights and other intangible assets related to the VERITAS acquisition.
O		To amortize the discount on VERITAS’ convertible subordinated debt as a result of adjustment to fair value.
P		Diluted shares are equal to Symantec historical shares plus VERITAS historical shares multiplied by the exchange ratio of 1.1242.
Q		To exclude charges related to patent settlement.
R		To exclude gain on strategic investments.

SYMANTEC CORPORATION
Reconciliation of Consolidated Statements of Operations to Non-GAAP Statements of Operations
(In thousands, except per share data)
(Unaudited)


	Year Ended March 31, 2006														Year Ended March 31, 2005
	GAAP							Non-GAAP							GAAP							Non-GAAP
	Symantec			VERITAS*				Adjustments				Non-GAAP			Symantec**			VERITAS***				Adjustments				Non-GAAP
Financial Statement Information
Net revenues (1)	$	4,143,392		$	559,258		A	$	301,788		J	$	5,004,438		$	2,582,849		$	2,041,874		A					$	4,624,723
Cost of revenues:
Cost of revenues (1)		667,579			87,657		A		(901	)	K		753,984			403,215			307,421		A		(3,604	)	K		710,623
					(401	)	B												(610	)	B
					901		C		(1,057	)	L								3,604		C
					(52	)	D												(208	)	D
					258		E												805		E
Amortization of acquired product rights (1)		314,290			7,424		A		(386,441	)	M		—			48,894			19,583		A		(383,398	)	M		—
					(7,424	)	F												(19,583	)	F
					72,151		G												334,504		G

Total cost of revenues (2)		981,869			160,514				(388,399	)			753,984			452,109			645,516				(387,002	)			710,623
Gross profit (2)		3,161,523			398,744				690,187				4,250,454			2,130,740			1,396,358				387,002				3,914,100
Operating expenses:
Sales and marketing (1)		1,486,590			165,652		A		(3,094	)	L		1,646,318			843,724			610,962		A						1,450,117
					(1,396	)	B		(1,866	)	N								(5,942	)	B
					(28	)	D												(112	)	D
					460		E												1,485		E
Research and development(1)		664,628			97,510		A		(2,700	)	L		755,519			332,266			346,644		A						675,685
					(1,331	)	B		(2,832	)	N								(3,960	)	B
					(58	)	D												(232	)	D
					302		E												967		E
General and administrative (1)		221,412			87,907		A		(5,774	)	N		268,377			115,419			194,454		A						307,407
					(60	)	B		(30,000	)	O								(851	)	B
					(540	)	D		(4,826	)	L								(2,160	)	D
					258		E												545		E
Amortization of other intangible assets from acquisitions (1)		148,822			2,430		A		(195,586	)	M		—			5,416			9,201		A		(192,472	)	M		—
					(2,430	)	F												(9,201	)	F
					46,764		G												187,056		G
Amortization of deferred stock-based compensation (1)		37,962			4,733		C		(42,695	)	P		—			4,524			18,932		C		(23,456	)	P		—
Acquired in-process research and development (1)		285,100							(285,100	)	M		—			3,480			11,900		A		(3,480	)	M		—
																			(11,900	)	F
Restructuring (1)		24,918							(24,918	)	Q		—			2,776			(9,648	)	A		6,872		Q		—
Integration planning (1)		15,926							(15,926	)	L		—			3,494							(3,494	)	L		—
Patent settlement (1)		2,200							(2,200	)	R		—			375							(375	)	R		—

Total operating expenses		2,887,558			400,173				(617,517	)			2,670,214			1,311,474			1,338,140				(216,405	)			2,433,209

Operating income (2)		273,965			(1,429	)			1,307,704				1,580,240			819,266			58,218				603,407				1,480,891
Interest and other income, net (1)		106,754			15,532		A						122,286			51,185			52,846		A						104,031
Interest expense (1)		(17,996	)		(5,198	)	A						(25,705	)		(12,323	)		(24,399	)	A						(46,766	)
					(2,511	)	H												(10,044	)	H
Gain on strategic investments (1)		—			732		A		(732	)	S		—			—			9,505		A		(9,505	)	S		—

Income before income taxes (2)		362,723			7,126				1,306,972				1,676,821			858,128			86,126				593,902				1,538,156
Provision for income taxes (1)		205,871			47,042		A		305,789		I		532,278			321,969			177,898		A		111,107		I		492,210
					(26,424	)	I												(118,764	)	I

Net income (2)	$	156,852		$	(13,492	)		$	1,001,183			$	1,144,543		$	536,159		$	26,992			$	482,795			$	1,045,946

Net income per share:
Diluted (2) ****	$	0.15										$	1.00		$	0.74										$	0.86
Shares used to compute net income per share:
Diluted (1) ****		1,025,856											1,147,519			738,245											1,231,731	T

(*) The results of operations include VERITAS’ historical results for the three months ended March 31, 2005, including amortization related to fair value adjustments based on the fair values of assets acquired and liabilities assumed as of the acquisition date of July 2, 2005.
(**) The results of operations include our results for the year ended March 31, 2005.
(***) The results of operations include VERITAS’ historical results for the year ended December 31, 2004, including amortization related to fair value adjustments based on the fair values of assets acquired and liabilities assumed as of the acquisition date of July 2, 2005.
(****) For the year ended March 31, 2005, diluted net income per share is calculated using the if-converted method. Under this method, the numerator excludes the interest expense from the 3% convertible subordinated notes, net of income tax, of $8.4M million for the year ended March 31, 2005 and the denominator includes shares issuable from the assumed conversion of the 3% convertible subordinated notes.

Footnotes:

(1)Symantec includes these non-GAAP financial measures because we believe these measures are useful to investors in that they allow for greater transparency to certain line items in our financial statements. We have historically reported similar non-GAAP financial measures to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting. Investors are encouraged to review the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as provided herein.
(2)Symantec’s management refers to these non-GAAP financial measures, such as non-GAAP operating margins and net income, in making operating decisions because the measures provide meaningful supplemental information regarding our operational performance and our ability to invest in research and development and fund acquisitions and capital expenditures. In addition, these non-GAAP financial measures facilitate management’s internal comparisons to our historical operating results and comparisons to competitors’ operating results. Investors are encouraged to review the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as provided herein.


A		To include VERITAS’ historical results of operations for applicable periods
B		To eliminate VERITAS’ historical amortization of deferred stock-based compensation.
C		To amortize deferred stock-based compensation related to the VERITAS acquisition.
D		To amortize VERITAS’ lease obligation in excess of fair value.
E		To record additional depreciation expense on VERITAS’ property and equipment as a result of the adjustment to fair value.
F		To eliminate VERITAS’ historical amortization of developed technology, other intangible assets and the write-off of in-process research and development.
G		To amortize acquired product rights and other intangible assets related to the VERITAS acquisition.
H		To amortize the discount on VERITAS’ convertible subordinated debt as a result of adjustment to fair value.
I		To adjust the provision for income taxes to reflect the effect of the non-GAAP adjustments on net income (loss).
J		To include VERITAS’ deferred revenue that was excluded as a result of adjustments to fair value
K		To exclude amortization of deferred stock-based compensation.
L		To exclude the Symantec and VERITAS integration planning costs.
M		To exclude non-cash charges of amortization of acquired product rights, amortization of other intangible assets and the write-off of acquired in-process research and development.
N		To exclude executive incentive bonuses related to the VERITAS acquisition.
O		To exclude $30 million related to the proposed VERITAS settlement with the SEC.
P		To exclude amortization of deferred stock-based compensation.
Q		To exclude charges relating to restructuring.
R		To exclude patent settlement costs
S		To exclude gains/losses on strategic investments.
T		Diluted shares are equal to Symantec historical shares plus VERITAS historical shares multiplied by the exchange ratio of 1.1242.

SYMANTEC CORPORATION
Reconciliation of GAAP Revenue Components to Non-GAAP Revenue Components
(In thousands, except per share data)
(Unaudited)


	Three Months Ended March, 2006										Three Months Ended March 31, 2005
	GAAP			Non-GAAP							GAAP			GAAP			Non-GAAP		Combined
	Symantec			Adjustments				Non-GAAP			Symantec*			VERITAS**			Adjustments		Non-GAAP
Net Revenues (1)	$	1,238,560		$	61,307		A	$	1,299,867		$	712,678		$	574,435	B	$	—	$	1,287,113
Revenue By Segment:
Enterprise Security	$	287,494		$	—		A	$	287,494		$	263,981		$	—	B	$	—	$	263,981
Storage and Server Management	$	275,079		$	25,021		A	$	300,100		$	76,764		$	217,832	B	$	—	$	294,596
Data Protection	$	269,306		$	32,541		A	$	301,847		$	—		$	326,333	B	$	—	$	326,333
Services	$	44,193		$	3,751		A	$	47,944		$	11,093		$	30,189	B	$	—	$	41,282
Consumer	$	362,605		$	—		A	$	362,605		$	360,914		$	—	B	$	—	$	360,914
Other	$	(117	)	$	(6	)	A	$	(123	)	$	(74	)	$	81	B	$	—	$	7
Revenue by Geography:
Americas	$	673,832		$	40,648		A	$	714,480		$	382,995		$	345,680	B	$	—	$	728,675
EMEA	$	399,524		$	15,315		A	$	414,839		$	229,040		$	172,242	B	$	—	$	401,282
Asia Pacific/Japan	$	165,204		$	5,344		A	$	170,548		$	100,643		$	56,513	B	$	—	$	157,156
Total International Revenue	$	627,198		$	22,842		A	$	650,040		$	370,771		$	250,223	B	$	—	$	620,994

NOTES:

The above information reflects the combined results of Symantec Corporation (“Symantec”) and VERITAS Software Corporation (“VERITAS”), which was acquired by Symantec as of July 2, 2005. For comparative purposes, the information presented assumes that the acquisition took place on April 1, 2004. If the acquisition had taken place on April 1, 2004, the fair value of deferred revenue would have been different and actual net revenues would have been different from the amounts presented above. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

(*) Net revenues include Symantec’s net revenues for the three months ended March 31, 2005.
(**) Net revenues include VERITAS’ net revenues for the three months ended December 31, 2004.


Footnotes:

1		Symantec includes these non-GAAP financial measures because we believe these measures are useful to investors in that they allow for greater transparency to certain line items in our financial statements. We have historically reported similar non-GAAP financial measures to our investors and believe that the inclusion of comparative numbers provides consistency in our financial reporting. Investors are encouraged to review the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as provided herein.

A		To include VERITAS’ deferred revenue that was excluded as a result of adjustments to fair value.
B		To include VERITAS’ historical results of operations for the three months ended December 31, 2004.

Gen Digital (GEN) 8-KSymantec Closes Fiscal Year 2006 with Solid March Quarter