EXHIBIT 99.1
NEWS RELEASE
MEDIA CONTACT: INVESTOR CONTACT:
Cris Paden Helyn Corcos
Symantec Corporation Symantec Corporation
408-517-8547 408-517-8324
cpaden@symantec.com hcorcos@symantec.com
SYMANTEC CLOSES FISCAL YEAR 2003 WITH RECORD REVENUES AND EARNINGS
QUARTERLY REVENUE GROWS 26 PERCENT YEAR-OVER-YEAR
CUPERTINO, CALIF. - APRIL 23, 2003 - Symantec Corp. (Nasdaq: SYMC), the world
leader in Internet security, today reported results for the fiscal fourth
quarter and fiscal year ended March 28, 2003. Symantec posted revenue for the
quarter of $390 million, a 26 percent increase compared to $311 million for the
same quarter last year. Revenue for fiscal year 2003 was $1.407 billion, a 31
percent increase compared to $1.071 billion for fiscal year 2002.
"This is a strong final quarter that closes an exceptional year for Symantec,"
said John W. Thompson, Symantec Chairman and CEO. "Both the quarter and the year
came in well ahead of expectations with record revenue and earnings during very
challenging times. Our diverse set of customers, best-of-breed security
solutions and unmatched geographic diversity all contributed to our success."
GAAP RESULTS: Net income for the fiscal fourth quarter was $68 million, compared
to $5 million from the same quarter last year. Earnings per share was $0.41,
compared to earnings per share of $0.03 for the same quarter last year. For
fiscal year 2003, Symantec reported net income of $248 million, compared to a
net loss of $28 million for fiscal year 2002. Earnings per share was $1.54,
compared to a net loss per share of $0.20 for fiscal year 2002.
NON-GAAP RESULTS: Non-GAAP net income for the fiscal fourth quarter was $78
million, compared to $65 million from the same quarter last year. Non-GAAP
earnings per share was $0.47, compared to earnings per share of $0.41 for the
year-ago quarter. For fiscal year 2003, Symantec reported non-GAAP net income of
$280 million, compared to $201 million in fiscal year 2002. Non-GAAP earnings
per share was $1.72, compared to earnings per share of $1.30 for fiscal year
2002. Non-GAAP results, as outlined in the attached consolidated statements,
exclude expenses from the amortization of goodwill, the amortization of other
intangibles from acquisitions, acquired in-process research and development and
restructuring and site closures as well as related income tax benefits. See "Use
of Non-GAAP Financial Information" below.
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SYMANTEC CLOSES FISCAL YEAR 2003 WITH RECORD REVENUES AND EARNINGS
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REVENUE COMPONENTS
For the quarter, Symantec's worldwide enterprise security business represented
41 percent of total revenue and grew 32 percent compared to the same quarter
last year. Symantec's consumer business grew 32 percent and represented 43
percent of total revenue.
International revenues represented 51 percent of total revenue in the fourth
quarter and grew 28 percent over the same quarter last year. Sales in Europe,
Middle East and Africa led the increase with 36 percent year-over-year growth
while sales in the United States grew 23 percent.
QUARTERLY HIGHLIGHTS
- Symantec signed 152 contracts worldwide worth more than $100,000 each,
including 28 worth more than $300,000 each and 9 worth more than $1
million each, during the quarter. Symantec signed new or extended
agreements with customers including the UNITED STATES DEPARTMENT OF
TREASURY AND DEPARTMENT OF STATE; the NEW YORK STATE OFFICE OF CYBER
SECURITY AND CRITICAL INFRASTRUCTURE COORDINATION; GENERAL DYNAMICS, a
market leader in defense systems and civilian transportation; TRIBUNE
COMPANY, one of the country's premier media companies, operating
businesses in broadcasting, publishing and on the Internet, reaching
more than 80 percent of U.S. households; MAYTAG CORPORATION, a leading
producer of home and commercial appliances; CNF INC., a $4.8 billion
management company of global supply chain services for commercial and
industrial customers; SEALED AIR, a leading global manufacturer of a
wide range of food, protective and specialty packaging materials and
systems; BELGACOM, Belgium's leading telecommunications operator; MG
TECHNOLOGIES, an international engineering and chemicals technology
group based in Germany, and UNIPOL, an Italian insurance company.
- The industry's premier global early warning system was unveiled with
the release of Symantec DeepSight Threat Management System 4.0. This
unique early warning system provides enterprises a comprehensive
birds-eye view of global Internet attacks in a timely manner,
delivering quick analyses and countermeasures to protect against or
even avoid malicious threats. The system gathers data from more than
19,000 partners in over 180 countries - the most extensive data network
in the world.
- Symantec launched the first in a series of integrated mail security
products, introducing a multi-layered spam prevention solution
integrated with award-winning virus protection. With Symantec AntiVirus
for SMTP Gateways 3.1, enterprises now have a single solution for
turning their Internet e-mail gateways into a first line of defense
against both the growing onslaught of unsolicited e-mail and the danger
of malicious code.
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SYMANTEC CLOSES FISCAL YEAR 2003 WITH RECORD REVENUES AND EARNINGS
PAGE 3 OF 9
- The Internet Security Threat Report was released, which provides the
most comprehensive analysis of trends in cyber security activity. The
report covers network-based attack activity, vulnerability discovery,
and malicious code.
- Symantec extended its joint product offering with T-Online, one of
Europe's largest Internet service providers, to include defense against
hackers and online intrusions. Now T-Online's 10 million European
customers can benefit from the unrivaled protection of both Norton
AntiVirus and Norton Personal Firewall for one monthly subscription
service fee.
AWARDS
Symantec products received the following awards from industry publications
during the quarter:
- CRN's prestigious Channel Champion Awards for intrusion detection,
firewall and antivirus solutions.
- CRN's "Product of the Year" for Symantec Enterprise Firewall in the
software firewall category.
- PC Magazine named Norton Internet Security 2003 to Best of 2002 list.
- Virus Bulletin awards Symantec AntiVirus with VB 100% for the 19th
time.
- CNET News.com named Norton AntiVirus, Norton Internet Security and
Norton Personal Firewall to their Editor's Top Software List.
- SC Magazine gives Recommended Award to Norton Internet Security,
Symantec Enterprise Security Manager and pcANYWHERE.
- SC Magazine provided Readers Trust Awards to Symantec Enterprise
Security Manager, Symantec Client Security and Symantec Gateway
Security.
- PC World listed Norton AntiVirus, Norton SystemWorks, and Norton
Internet Security as top utilities in annual utilities guide.
- Computer Shopper readers named Norton SystemWorks as the Best Software
of 2002 and received the Reader's Picks award.
BUSINESS OUTLOOK
Management offers the following forward-looking guidance for the fiscal first
quarter 2004 ending July 4, 2003:
- Revenue is expected to be in the range of $370 to $390 million.
- GAAP earnings per share is expected to be $0.34 at the midpoint of the
revenue guidance.
- Non-GAAP earnings per share is expected to be $0.38 at the midpoint of
the revenue guidance.
Management offers the following forward-looking guidance for fiscal year 2004,
ending April 2, 2004:
- Revenue is expected to be approximately $1.65 billion.
- GAAP earnings per share is expected to be $1.75 at the stated revenue
forecast.
- Non-GAAP earnings per share is expected to be $1.88 at the stated
revenue forecast.
Non-GAAP earnings per share excludes the pre-tax amortization of intangibles
from acquisitions of approximately $9 million and $34 million for the quarter
ending July 4, 2003 and the fiscal year ending April 2, 2004, respectively.
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SYMANTEC CLOSES FISCAL YEAR 2003 WITH RECORD REVENUES AND EARNINGS
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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. Non-GAAP net income and earnings
per share exclude acquisition related charges, such as acquired in-process
research and development and amortization of goodwill and other intangibles, and
certain other charges, such as restructurings and site closures, as well as the
tax effect of these items. Symantec's management believes these non-GAAP
measures 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, is likely to 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 and can be found on the investor relations Web site at
www.symantec.com/invest/center.html.
CONFERENCE CALL
Symantec has scheduled a conference call for 5:30 p.m. EDT/2:30 p.m. PDT today
to discuss fiscal fourth quarter and fiscal year 2003 results, and to review
guidance for the fiscal first quarter and fiscal year 2004. Interested parties
may access the conference call on the Internet at
http://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 will be available on the investor relations
home page shortly after the call is completed.
ABOUT SYMANTEC
Symantec, the world leader in Internet security technology, provides a broad
range of content and network security software and appliance solutions to
individuals, enterprises and service providers. The company is a leading
provider of client, gateway and server security solutions for virus protection,
firewall and virtual private network, vulnerability management, intrusion
detection, Internet content and e-mail filtering, remote management technologies
and security services to enterprises and service providers around the world.
Symantec's Norton brand of consumer security products is a leader in worldwide
retail sales and industry awards. Headquartered in Cupertino, Calif., Symantec
has worldwide operations in 36 countries. For more information, please visit
www.symantec.com.
NOTE TO EDITORS: If you would like additional information on Symantec
Corporation and its products, please view the Symantec Press Center at
http://www.symantec.com/PressCenter/ on Symantec's Web site. 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, in the
United States and certain other countries, of Symantec Corporation. Additional
company and product names may be trademarks or registered trademarks of the
individual companies and are respectfully acknowledged.
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SYMANTEC CLOSES FISCAL YEAR 2003 WITH RECORD REVENUES AND EARNINGS
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FORWARD LOOKING STATEMENT: This press release contains forward-looking
statements, including forecasts of future revenue and earnings, expected
activities, and other financial and business results that involve 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 by this press release. Such risk factors
include, among others: the sustainability of recent growth rates, particularly
in consumer products; the anticipation of the growth of certain market segments,
particularly enterprise security; the positioning of Symantec's products in
those segments; the competitive environment in the software industry; general
market conditions, fluctuations in currency exchange rates, changes to operating
systems and product strategy by vendors of operating systems; and whether
Symantec can successfully develop new products and the degree to which these
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 sections of Symantec's previously filed Form 10-Q for the quarter ended
December 31, 2002. Symantec assumes no obligation to update any forward-looking
information contained in this press release except as otherwise required by law.
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SYMANTEC CLOSES FISCAL YEAR 2003 WITH RECORD REVENUES AND EARNINGS
PAGE 6 OF 9
SYMANTEC CORPORATION
GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
March 31, March 31,
------------------------------ ------------------------------
(In thousands, except per share data; unaudited) 2003 2002 2003 2002
- ------------------------------------------------------ ----------- ----------- ----------- -----------
Net revenues $ 390,039 $ 310,783 $ 1,406,946 $ 1,071,438
Cost of revenues 68,225 53,301 250,116 195,903
----------- ----------- ----------- -----------
Gross margin 321,814 257,482 1,156,830 875,535
Operating expenses:
Research and development 54,417 43,774 197,271 163,979
Sales and marketing 145,486 112,545 525,029 425,951
General and administrative 22,488 16,148 74,442 55,131
Amortization of goodwill -- 48,997 -- 196,806
Amortization of other intangibles from acquisitions 793 536 2,787 2,144
Acquired in-process research and development -- -- 4,700 --
Restructuring, site closures and other 6,657 9,005 11,089 20,428
Litigation judgment -- 3,055 -- 3,055
----------- ----------- ----------- -----------
Total operating expenses 229,841 234,060 815,318 867,494
Operating income 91,973 23,422 341,512 8,041
Interest income 9,296 9,083 37,704 31,717
Interest expense (5,291) (5,298) (21,166) (9,169)
Income, net of expense, from sale of technologies
and product lines 2,454 2,257 6,878 15,536
Other income (expense), net 128 399 (1,297) (627)
----------- ----------- ----------- -----------
Income before income taxes 98,560 29,863 363,631 45,498
Provision for income taxes 30,417 25,084 115,193 73,649
----------- ----------- ----------- -----------
Net income (loss) $ 68,143 $ 4,779 $ 248,438 $ (28,151)
=========== =========== =========== ===========
Net income (loss) per share - diluted* $ 0.41 $ 0.03 $ 1.54 $ (0.20)
=========== =========== =========== ===========
Shares used to compute net income (loss)
per share - diluted* 173,901 151,661 170,718 143,604
=========== =========== =========== ===========
* For the three and twelve months ended March 31, 2003, 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
debentures, net of income tax, of $3.6M and $14.4M for the three and twelve
months ended March 31, 2003, respectively, and the denominator includes shares
issuable from the assumed conversion of the 3% convertible subordinated
debentures. For the three and twelve months ended March 31, 2002, diluted net
income (loss) per share excludes the assumed conversion of the 3% convertible
subordinated debentures, as their effect would be anti-dilutive.
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SYMANTEC CLOSES FISCAL YEAR 2003 WITH RECORD REVENUES AND EARNINGS
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SYMANTEC CORPORATION
NON-GAAP CONSOLIDATED STATEMENTS OF INCOME
NON-GAAP AMOUNTS EXCLUDE ALL ACQUISITION-RELATED AMORTIZATION, ACQUIRED
IN-PROCESS RESEARCH AND DEVELOPMENT AND RESTRUCTURING CHARGES.
Three Months Ended Twelve Months Ended
March 31, March 31,
------------------------------ ------------------------------
(In thousands, except per share data; unaudited) 2003 2002 2003 2002
- -------------------------------------------------- ----------- ----------- ----------- -----------
Net revenues $ 390,039 $ 310,783 $1,406,946 $ 1,071,438
Cost of revenues 59,780 45,972 220,541 165,612
----------- ----------- ----------- -----------
Gross margin 330,259 264,811 1,186,405 905,826
Operating expenses:
Research and development 54,417 43,774 197,271 163,979
Sales and marketing 145,486 112,545 525,029 425,951
General and administrative 22,488 16,148 74,442 55,131
Litigation judgment -- 3,055 -- 3,055
----------- ----------- ----------- -----------
Total operating expenses 222,391 175,522 796,742 648,116
Operating income 107,868 89,289 389,663 257,710
Interest income 9,296 9,083 37,704 31,717
Interest expense (5,291) (5,298) (21,166) (9,169)
Income, net of expense, from sale of technologies
and product lines 2,454 2,257 6,878 15,536
Other income (expense), net 128 399 (1,297) (627)
----------- ----------- ----------- -----------
Income before income taxes 114,455 95,730 411,782 295,167
Provision for income taxes 36,626 30,634 131,771 94,454
----------- ----------- ----------- -----------
Net income $ 77,829 $ 65,096 $ 280,011 $ 200,713
=========== =========== =========== ===========
Net income per share - diluted* $ 0.47 $ 0.41 $ 1.72 $ 1.30
=========== =========== =========== ===========
Shares used to compute net income per share - diluted* 173,901 169,236 170,718 158,777
=========== =========== =========== ===========
* For the three and twelve months ended March 31, 2003 and 2002, 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
debentures, net of income tax, of $3.6M and $14.4M for the three and twelve
months ended March 31, 2003, respectively, and $3.6M and $6.2M for the three and
twelve months ended March 31, 2002, respectively, and the denominator includes
shares issuable from the assumed conversion of the 3% convertible subordinated
debentures.
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SYMANTEC CLOSES FISCAL YEAR 2003 WITH RECORD REVENUES AND EARNINGS
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SYMANTEC CORPORATION
RECONCILIATION OF NON-GAAP CONSOLIDATED STATEMENTS OF INCOME TO THE GAAP
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
March 31, March 31,
-------------------------- --------------------------
(In thousands, except per share data; unaudited) 2003 2002 2003 2002
- -------------------------------------------------------- --------- --------- --------- ---------
Non-GAAP net income $ 77,829 $ 65,096 $ 280,011 $ 200,713
Cost of revenues:
Amortization of other intangibles from acquisitions (8,445) (7,329) (29,575) (30,291)
Operating expenses:
Amortization of goodwill -- (48,997) -- (196,806)
Amortization of other intangibles from acquisitions (793) (536) (2,787) (2,144)
Acquired in-process research and development -- -- (4,700) --
Restructuring, site closures and other (6,657) (9,005) (11,089) (20,428)
Income tax benefit 6,209 5,550 16,578 20,805
--------- --------- --------- ---------
Net income (loss) $ 68,143 $ 4,779 $ 248,438 $ (28,151)
========= ========= ========= =========
Net income (loss) per share - diluted $ 0.41 $ 0.03 $ 1.54 $ (0.20)
========= ========= ========= =========
Shares used to compute net income (loss)
per share - diluted 173,901 151,661 170,718 143,604
========= ========= ========= =========
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SYMANTEC CLOSES FISCAL YEAR 2003 WITH RECORD REVENUES AND EARNINGS
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SYMANTEC CORPORATION
CONSOLIDATED BALANCE SHEETS
March 31, March 31,
(In thousands) 2003 2002
- ----------------------------------------------------- --------------- -------------
ASSETS
Current assets:
Cash, cash equivalents and short-term investments $ 1,705,658 $ 1,375,051
Trade accounts receivable, net 149,664 89,223
Inventories, net 5,912 7,463
Deferred income taxes 92,284 68,621
Other 34,628 22,461
--------------- -------------
Total current assets 1,988,146 1,562,819
Restricted investments -- 124,313
Property, equipment and leasehold improvements, net 333,275 186,305
Deferred income taxes 7,986 6,207
Acquired product rights, net 73,125 65,219
Goodwill, net 833,449 525,868
Other, net 29,749 31,874
--------------- -------------
$ 3,265,730 $ 2,502,605
=============== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 67,720 $ 70,057
Accrued compensation and benefits 90,947 54,419
Deferred revenue 589,629 331,100
Other accrued expenses 69,363 66,422
Income taxes payable 76,965 52,777
--------------- -------------
Total current liabilities 894,624 574,775
Convertible subordinated debentures 599,998 600,000
Other long-term obligations 6,729 7,954
Commitments and contingencies
Stockholders' equity:
Preferred stock -- --
Common stock 1,488 1,436
Capital in excess of par value 1,335,028 1,194,173
Accumulated other comprehensive income (loss) 30,121 (53,013)
Unearned compensation -- (372)
Retained earnings 397,742 177,652
--------------- -------------
Total stockholders' equity 1,764,379 1,319,876
--------------- -------------
$ 3,265,730 $ 2,502,605
=============== =============
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