Symantec Corp. (NASDAQ: SYMC) today announced preliminary financial results for the fiscal third quarter, ended Dec. 29, 2006. Symantec will release actual results for the fiscal third quarter after the market closes on Jan. 24, 2007.
The company anticipates GAAP revenue for its fiscal third quarter of $1.29 billion to $1.31 billion compared to prior guidance of $1.315 billion to $1.345 billion and compared to $1.149 billion in the year ago period. The company also anticipates GAAP diluted earnings per share of $0.10 to $0.11 as compared to the previous forecast of $0.14 to $0.15 per share and compared to $0.08 per share in the year ago period.
The company anticipates non-GAAP revenue for its fiscal third quarter of $1.30 billion to $1.32 billion compared to prior guidance of $1.325 billion to $1.355 billion and compared to $1.253 billion in the year ago period. The company also anticipates non-GAAP diluted earnings per share of $0.24 to $0.25 as compared to the previous forecast of $0.29 to $0.30 per share and compared to $0.26 per share in the year ago period. For a reconciliation of GAAP to non-GAAP results, please refer to the attached reconciliations.
GAAP deferred revenue is expected to be between $2.42 billion to $2.45 billion. Non-GAAP deferred revenue is expected to be between $2.43 billion to $2.46 billion as of the end of the fiscal third quarter.
"We experienced weaker than expected performance in our Data Center Management business," said John W. Thompson, Symantec chairman and chief executive officer. "Our recognized revenue for the quarter was also impacted by a greater proportion of enterprise maintenance contracts, which resulted in higher deferrals than we expected. Additionally, with the implementation of our new ERP system, we incurred higher costs than expected."
March Quarter Forecast
For the March 2007 quarter, GAAP revenue is estimated between $1.24 billion and $1.27 billion. GAAP diluted earnings per share for the March quarter is estimated between $0.04 and $0.06.
Non-GAAP revenue for the March quarter is estimated between $1.25 billion and $1.28 billion. Non-GAAP diluted earnings per share for the March quarter is estimated between $0.18 and $0.20.
Fiscal Year 2007 Forecast
Symantec is adjusting its previously announced guidance for the fiscal year ending March 2007. GAAP revenue is estimated in the range of $5.08 billion to $5.11 billion. GAAP diluted earnings per share for the fiscal year ending March 2007 is estimated between $0.36 and $0.39.
Non-GAAP revenue is estimated in the range of $5.13 billion to $5.16 billion. Non-GAAP diluted earnings per share is estimated between $0.92 and $0.95.
Deferred revenue is estimated to be in the range of $2.60 billion to $2.65 billion as of the end of 2007 compared to prior guidance of $2.4 billion to $2.6 billion and compared to $2.16 billion in fiscal year 2006.
Conference Call
Symantec has scheduled a conference call and simultaneous webcast for 8:30 a.m. ET/5:30 a.m. PT today to discuss the preliminary results for fiscal third quarter, ended Dec. 29, 2006. To participate in the call, interested parties may call (877) 704-5384 or (913) 312-1297. Participants should dial in 10 minutes prior to the scheduled start of the call. The webcast will be available on the Internet at http://www.symantec.com/.... 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.
Additionally, Symantec will webcast its quarterly earnings conference call on Wednesday, Jan. 24, 2007, at 5 p.m. ET/2 p.m. PT to discuss the actual results of its fiscal third quarter 2007. Investors will have the opportunity to listen to the conference call and the replay over the Internet through Symantec's investor relations' Web site listed above.
The company anticipates GAAP revenue for its fiscal third quarter of $1.29 billion to $1.31 billion compared to prior guidance of $1.315 billion to $1.345 billion and compared to $1.149 billion in the year ago period. The company also anticipates GAAP diluted earnings per share of $0.10 to $0.11 as compared to the previous forecast of $0.14 to $0.15 per share and compared to $0.08 per share in the year ago period.
The company anticipates non-GAAP revenue for its fiscal third quarter of $1.30 billion to $1.32 billion compared to prior guidance of $1.325 billion to $1.355 billion and compared to $1.253 billion in the year ago period. The company also anticipates non-GAAP diluted earnings per share of $0.24 to $0.25 as compared to the previous forecast of $0.29 to $0.30 per share and compared to $0.26 per share in the year ago period. For a reconciliation of GAAP to non-GAAP results, please refer to the attached reconciliations.
GAAP deferred revenue is expected to be between $2.42 billion to $2.45 billion. Non-GAAP deferred revenue is expected to be between $2.43 billion to $2.46 billion as of the end of the fiscal third quarter.
"We experienced weaker than expected performance in our Data Center Management business," said John W. Thompson, Symantec chairman and chief executive officer. "Our recognized revenue for the quarter was also impacted by a greater proportion of enterprise maintenance contracts, which resulted in higher deferrals than we expected. Additionally, with the implementation of our new ERP system, we incurred higher costs than expected."
March Quarter Forecast
For the March 2007 quarter, GAAP revenue is estimated between $1.24 billion and $1.27 billion. GAAP diluted earnings per share for the March quarter is estimated between $0.04 and $0.06.
Non-GAAP revenue for the March quarter is estimated between $1.25 billion and $1.28 billion. Non-GAAP diluted earnings per share for the March quarter is estimated between $0.18 and $0.20.
Fiscal Year 2007 Forecast
Symantec is adjusting its previously announced guidance for the fiscal year ending March 2007. GAAP revenue is estimated in the range of $5.08 billion to $5.11 billion. GAAP diluted earnings per share for the fiscal year ending March 2007 is estimated between $0.36 and $0.39.
Non-GAAP revenue is estimated in the range of $5.13 billion to $5.16 billion. Non-GAAP diluted earnings per share is estimated between $0.92 and $0.95.
Deferred revenue is estimated to be in the range of $2.60 billion to $2.65 billion as of the end of 2007 compared to prior guidance of $2.4 billion to $2.6 billion and compared to $2.16 billion in fiscal year 2006.
Conference Call
Symantec has scheduled a conference call and simultaneous webcast for 8:30 a.m. ET/5:30 a.m. PT today to discuss the preliminary results for fiscal third quarter, ended Dec. 29, 2006. To participate in the call, interested parties may call (877) 704-5384 or (913) 312-1297. Participants should dial in 10 minutes prior to the scheduled start of the call. The webcast will be available on the Internet at http://www.symantec.com/.... 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.
Additionally, Symantec will webcast its quarterly earnings conference call on Wednesday, Jan. 24, 2007, at 5 p.m. ET/2 p.m. PT to discuss the actual results of its fiscal third quarter 2007. Investors will have the opportunity to listen to the conference call and the replay over the Internet through Symantec's investor relations' Web site listed above.
