SOURCE: Symantec

October 24, 2007 16:05 ET

Symantec Reports Solid Second Quarter Results

Improved Business Operations Contribute to Better Than Expected Revenue Performance

CUPERTINO, CA--(Marketwire - October 24, 2007) - Symantec Corp. (NASDAQ: SYMC) today reported the results of its second quarter of fiscal year 2008, ended Sept. 28, 2007. GAAP revenue for the quarter was $1.42 billion and non-GAAP revenue was $1.44 billion. Non-GAAP revenue, including revenue from the Altiris acquisition, grew 13 percent over the comparable period a year ago.

GAAP deferred revenue at the end of the September 2007 quarter was $2.60 billion, compared to $2.33 billion at the end of the September 2006 quarter. Non-GAAP deferred revenue at the end of the quarter reached $2.62 billion, up 12 percent compared to $2.35 billion at the end of the September 2006 quarter.

Cash flow from operating activities for the September 2007 quarter was $331 million, up 20 percent compared to $277 million for the September 2006 quarter.

GAAP Results: GAAP net income for the September 2007 quarter was $50 million, compared to $126 million in the September 2006 quarter. Diluted earnings per share of $0.06 compared to earnings per share of $0.13 for the same quarter last year. The earnings per share result includes a write-down of $87 million associated with non-strategic Data Center Management assets.

Non-GAAP Results: Non-GAAP net income for the September 2007 quarter was $263 million, compared to $261 million for the same quarter last year. Non-GAAP diluted earnings per share were $0.29, up 11 percent compared to diluted earnings per share of $0.26 for the same quarter last year. For a detailed reconciliation of our GAAP to non-GAAP results, please refer to the condensed consolidated financial statements below.

"With strong demand for a number of our emerging enterprise technology solutions and improving business operations, our team delivered a solid quarter," said John W. Thompson, chairman and chief executive officer, Symantec. "Core business areas like our consumer business and our Windows-based backup solutions had strong results, which contributed to healthy cash flow performance this quarter."

Financial Highlights

For the quarter, Symantec's Consumer segment represented 30 percent of total non-GAAP revenue and grew 10 percent year-over-year. The Security and Data Management segment represented 30 percent of total revenue and grew 7 percent year-over-year. The Data Center Management segment represented 28 percent of total revenue and grew 7 percent year-over-year. Services represented 6 percent of total revenue and grew 30 percent year-over-year. The Altiris segment includes revenues from the acquisition of Altiris and Symantec's Ghost, pcAnywhere and LiveState Delivery solutions, and represented 6 percent of total revenue.

International revenues represented 51 percent of total non-GAAP revenue in the September 2007 quarter and grew 15 percent year-over-year. The Europe, Middle East and Africa region represented 32 percent of total revenue for the quarter and grew 20 percent year-over-year. The Asia Pacific/Japan revenue for the quarter represented 14 percent of total revenue and grew 9 percent year-over-year. The Americas, including the United States, Latin America and Canada, represented 54 percent of total revenue and increased 10 percent year-over-year.

December Quarter 2007 Guidance

For the December 2007 quarter, GAAP revenue is estimated between $1.41 billion and $1.45 billion. GAAP diluted earnings per share are estimated between $0.06 and $0.11.

Non-GAAP revenue for the December 2007 quarter is estimated between $1.425 billion and $1.465 billion. Non-GAAP diluted earnings per share are estimated between $0.25 and $0.30.

GAAP deferred revenue is expected to be in the range of $2.635 billion and $2.785 billion. Non-GAAP deferred revenue is expected to be in the range of $2.65 billion and $2.80 billion.

For the December 2007 quarter, we expect cash flow from operating activities to be below the December 2006 quarter cash flow from operating activities of $454 million.

Quarterly Highlights

    Symantec signed 302 contracts worldwide versus 292 contracts in the same
    period a year ago worth more than $300,000 each.  Sixty-four contracts were
    worth more than $1 million each versus 67 contracts in the same period a
    year ago.  In the September 2007 quarter, more than 75 percent of our large
    deals were multiple product deals.
    
    In North America, Symantec signed new or extended agreements with customers
    including East Tennessee State University, a regional public university
    serving more than 13,000 students; US Airways, the fifth largest domestic
    airline employing more than 36,000 aviation professionals worldwide; Texas
    Children's Hospital, an internationally recognized full-care pediatric
    hospital located in the Texas Medical Center in Houston; Pittsburgh Public
    Schools, serving 29,447 students in 65 schools; GCI, which provides
    residential and business telecommunications services to residents of
    Alaska; and The California Department of Transportation, managing more than
    45,000 freeway miles and more within the state of California.
    
    International customers from the quarter included Contax S.A., a leading
    Brazilian provider of telephone, e-mail, postal, and Internet contact
    services; Pearson, an international media company with world-leading
    businesses in education, business information and consumer publishing; GS
    Home Shopping, the leader in Korea's home shopping industry; AMS, the
    Swedish National Labor Market Administration; AC Hotels, the Spanish hotel
    chain; and The London Stock Exchange.
    

Conference Call

Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss the fiscal second quarter, ended Sept. 28, 2007, and to review guidance. 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 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 a global leader in infrastructure software, enabling businesses and consumers to have confidence in a connected world. The company helps customers protect their infrastructure, information and interactions by delivering software and services that address risks to security, availability, compliance and performance. Headquartered in Cupertino, Calif., Symantec has operations in 40 countries. More information is available at www.symantec.com.

NOTE TO EDITORS: If you would like additional information on Symantec Corporation and its products, please visit the Symantec News Room at http://www.symantec.com/news. All prices noted are in U.S. 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, earnings per share, deferred revenue and cash flow from operations, as well as projections of amortization of acquisition-related intangibles and stock-based compensation. 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: maintaining customer and partner relationships; the anticipated growth of certain market segments, particularly with regard to security and storage; 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 our Form 10-K for the year ended March 30, 2007.

USE OF NON-GAAP FINANCIAL INFORMATION: Our results of operations have undergone significant change due to a series of acquisitions, the impact of SFAS 123(R) and other corporate events. To help our readers understand our past financial performance and our future results, we supplement the financial results that we provide in accordance with generally accepted accounting principles, or GAAP, with non-GAAP financial measures. The method we use to produce non-GAAP results is not computed according to GAAP and may differ from the methods used by other companies. Our non-GAAP results are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Investors are encouraged to review the reconciliation of our non-GAAP financial measures to the comparable GAAP results, which is attached to our quarterly earnings release and which can be found, along with other financial information, on the investor relations page of our Web site at www.symantec.com/invest.

                           SYMANTEC CORPORATION
                  Condensed Consolidated Balance Sheets


                                                September 30,   March 31,
                                                    2007          2007
                                                ------------- -------------
                                                      (In thousands)
                                                 (Unaudited)

ASSETS
Current assets:
   Cash and cash equivalents                    $   1,388,364 $   2,559,034
   Short-term investments                             627,478       428,619
   Trade accounts receivable, net                     601,837       666,968
   Inventories                                         32,735        42,183
   Deferred income taxes                              172,422       165,323
   Other current assets (1)                           206,840       208,920
                                                ------------- -------------
      Total current assets                          3,029,676     4,071,047
Property and equipment, net                         1,125,560     1,092,240
Acquired product rights, net                          788,884       909,878
Other intangible assets, net                        1,315,003     1,245,638
Goodwill                                           10,948,364    10,340,348
Other long-term assets                                 59,264        63,987
Non current deferred income taxes                      49,998        27,732
                                                ------------- -------------
      Total assets                              $  17,316,749 $  17,750,870
                                                ============= =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Accounts payable                             $     169,422 $     149,131
   Accrued compensation and benefits                  324,236       307,824
   Current deferred revenue                         2,265,575     2,387,733
   Income taxes payable                                40,520       238,486
   Other current liabilities (1)                      191,500       234,915
                                                ------------- -------------
      Total current liabilities                     2,991,253     3,318,089
Convertible senior notes                            2,100,000     2,100,000
Long-term deferred revenue                            333,022       366,050
Long-term deferred tax liabilities                    277,041       343,848
Long-term income taxes payable                        424,595             -
Other long-term obligations                            85,419        21,370
                                                ------------- -------------
      Total liabilities                             6,211,330     6,149,357
Stockholders' equity:
   Common stock                                         8,650         8,994
   Capital in excess of par value                   9,495,987    10,061,144
   Accumulated other comprehensive income             195,814       182,933
   Retained earnings                                1,404,968     1,348,442
                                                ------------- -------------
      Total stockholders' equity                   11,105,419    11,601,513
                                                ------------- -------------
         Total liabilities and stockholders'
          equity                                $  17,316,749 $  17,750,870
                                                ============= =============


(1) During the second quarter of fiscal 2008, management determined that
certain tangible and intangible assets and liabilities of the Data Center
Management segment did not meet the long term strategic objectives of the
segment. Accordingly, we have recorded a write-down of $87 million to value
these assets and liabilities at the respective estimated fair value. The
fair value of these assets, totaling $23 million, primarily consists of
intangible assets of $18 million and is included in Other current assets on
the Condensed Consolidated Balance Sheet. The liabilities of $10 million
are included in Other current liabilities on the Condensed Consolidated
Balance Sheet.




                           SYMANTEC CORPORATION
                Condensed Consolidated Statements of Income


                              Three Months Ended       Six Months Ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2007      2006 (1)      2007      2006 (1)
                            ----------  ----------  ----------  ----------
                                              (Unaudited)
                           (In thousands, except net income per share data)

Net revenues:
   Content, subscriptions,
    and maintenance         $1,117,165  $  955,025  $2,203,683  $1,872,571
   Licenses                    301,924     305,383     615,744     653,705
                            ----------  ----------  ----------  ----------
      Total net revenues     1,419,089   1,260,408   2,819,427   2,526,276
Cost of revenues:
   Content, subscriptions,
    and maintenance            205,572     203,524     415,238     398,660
   Licenses                      9,892      11,539      21,130      27,451
   Amortization of acquired
    product rights              89,062      85,338     178,422     172,949
                            ----------  ----------  ----------  ----------
      Total cost of revenues   304,526     300,401     614,790     599,060
                            ----------  ----------  ----------  ----------
Gross profit                 1,114,563     960,007   2,204,637   1,927,216
Operating expenses:
   Sales and marketing         595,162     464,589   1,163,692     932,038
   Research and development    221,057     218,250     446,635     431,445
   General and
    administrative              86,405      80,076     172,250     158,697
   Amortization of other
    purchased intangible
    assets                      56,926      50,480     113,851     101,094
   Restructuring                 9,578       6,220      28,578      19,478
   Write-down of intangible
    assets (2)                  86,546           -      86,546           -
                            ----------  ----------  ----------  ----------
      Total operating
       expenses              1,055,674     819,615   2,011,552   1,642,752
                            ----------  ----------  ----------  ----------
Operating income                58,889     140,392     193,085     284,464
   Interest income              19,179      34,983      40,000      62,799
   Interest expense             (6,617)     (8,052)    (12,908)    (14,730)
   Other income net              1,965      15,581       3,231      15,399
                            ----------  ----------  ----------  ----------
Income before income taxes      73,416     182,904     223,408     347,932
   Provision for income taxes   23,048      56,722      77,834     121,216
                            ----------  ----------  ----------  ----------
Net income                  $   50,368  $  126,182  $  145,574  $  226,716
                            ==========  ==========  ==========  ==========
Net income per share --
 basic                      $     0.06  $     0.13  $     0.16  $     0.23
                            ==========  ==========  ==========  ==========
Net income per share --
 diluted                    $     0.06  $     0.13  $     0.16  $     0.22
                            ==========  ==========  ==========  ==========
Shares used to compute net
 income per share -- basic     875,662     966,757     883,652     997,789
                            ==========  ==========  ==========  ==========
Shares used to compute net
 income per share -- diluted   892,759     987,916     901,683   1,018,427
                            ==========  ==========  ==========  ==========


(1) Symantec adopted Staff Accounting Bulletin No. 108, "Considering the
Effects of Prior Year Misstatements when Quantifying Misstatements in
Current Year Financial Statements," or SAB 108, during the March 2007
quarter.  As such, our results for the three and six months ended September
2006 include the adoption of SAB 108.  We believe the resulting changes for
the previously reported amounts to the quarter are immaterial.  See item
15, "Summary of Significant Accounting Policies" in our March 2007 10-K for
a detailed explanation of the impact of our adoption of SAB 108.

(2) During the second quarter of fiscal 2008, management determined that
certain tangible and intangible assets and liabilities of the Data Center
Management segment did not meet the long term strategic objectives of the
segment. Accordingly, we have recorded a write-down of $87 million to value
these assets and liabilities at the respective estimated fair value.




                           SYMANTEC CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                      Six Months Ended
                                                        September 30,
                                                  ------------------------
                                                      2007       2006 (1)
                                                  -----------  -----------
                                                        (Unaudited)
                                                       (In thousands)

OPERATING ACTIVITIES:
Net income                                        $   145,574  $   226,716
   Adjustments to reconcile net income to net
    cash provided by operating activities:
   Depreciation and amortization of property and
    equipment                                         127,689      126,381
   Amortization                                       289,804      282,113
   Stock-based compensation expense                    81,734       82,629
   Impairment of equity investments                         -        2,841
   Write-down of intangible assets (2)                 86,546            -
   Deferred income taxes                             (103,900)     (17,122)
   Income tax benefit from stock options               17,268       10,843
   Excess income tax benefit from stock options       (13,529)      (5,894)
   (Gain) loss on sale of property and equipment        3,076      (16,716)
   Other                                                    -         (144)
   Net change in assets and liabilities,
    excluding effects of acquisitions:
      Trade accounts receivable, net                  118,986      119,617
      Inventories                                      10,497        8,157
      Accounts payable                                  7,647      (14,015)
      Accrued compensation and benefits                  (418)     (16,743)
      Deferred revenue                               (229,013)      22,628
      Income taxes payable                            131,436     (157,447)
      Other operating assets and liabilities            8,881       (8,964)
                                                  -----------  -----------
Net cash provided by operating activities             682,278      644,880
INVESTING ACTIVITIES:
   Capital expenditures                              (138,029)    (236,487)
   Proceeds from sale of property and equipment             -       86,904
   Cash payments for business acquisitions, net
    of cash and cash equivalents acquired            (852,286)      (4,590)
   Purchases of available-for-sale securities        (640,570)     (42,492)
   Proceeds from sales of available-for-sale
    securities                                        498,386      245,968
                                                  -----------  -----------
Net cash (used in) provided by investing
 activities                                        (1,132,499)      49,303
FINANCING ACTIVITIES:
   Issuance of convertible senior notes                     -    2,067,762
   Purchase of hedge on convertible senior notes            -     (592,490)
   Sale of common stock warrants                            -      326,102
   Repurchase of common stock                        (899,984)  (1,866,318)
   Net proceeds from sales of common stock under
    employee stock benefit plans                      130,220      117,982
   Repayment of long term liability                    (7,604)    (520,000)
   Restricted stock issuance                           (3,050)           -
   Excess tax benefit from stock options               13,529        5,894
                                                  -----------  -----------
Net cash used in financing activities                (766,889)    (461,068)
Effect of exchange rate fluctuations on cash and
 cash equivalents                                      46,440       59,049
                                                  -----------  -----------
Net (decrease) increase in cash and cash
 equivalents                                       (1,170,670)     292,164
Beginning cash and cash equivalents                 2,559,034    2,315,622
                                                  -----------  -----------
Ending cash and cash equivalents                  $ 1,388,364  $ 2,607,786
                                                  ===========  ===========


(1) Symantec adopted Staff Accounting Bulletin No. 108, "Considering the
Effects of Prior Year Misstatements when Quantifying Misstatements in
Current Year Financial Statements," or SAB 108, during the March 2007
quarter.  As such, our results for the June and September 2006 fiscal
quarters include the adoption of SAB 108.  We believe the resulting changes
to the previously reported amounts to the quarter are immaterial.  See item
15, "Summary of Significant Accounting Policies" in our March 2007 10-K for
a detailed explanation of the impact of our adoption of SAB 108.

(2) During the second quarter of fiscal 2008, management determined that
certain tangible and intangible assets and liabilities of the Data Center
Management segment did not meet the long term strategic objectives of the
segment. Accordingly, we have recorded a write-down of $87 million to value
these assets and liabilities at the respective estimated fair value.




                           SYMANTEC CORPORATION
  Reconciliation of GAAP Revenue, Net Income and Net Income Per Share to
  Non-GAAP Revenue, Non-GAAP Net Income and Non-GAAP Net Income Per Share
                                (Unaudited)
                  (In thousands, except per share data)


                              Three Months Ended       Six Months Ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2007      2006(11)      2007      2006(11)
                            ----------  ----------  ----------  ----------
NET REVENUES:
GAAP net revenues           $1,419,089  $1,260,408  $2,819,427  $2,526,276
   Fair value adjustment to
    Altiris deferred
    revenue (1)                 13,505           -      29,861           -
   Fair value adjustment to
    Veritas deferred
    revenue (1)                  4,738      12,984      10,888      35,265
                            ----------  ----------  ----------  ----------
Non-GAAP net revenues       $1,437,332  $1,273,392  $2,860,176  $2,561,541
                            ==========  ==========  ==========  ==========

NET INCOME:
GAAP net income:            $   50,368  $  126,182  $  145,574  $  226,716
   Fair value adjustment to
    Altiris deferred
    revenue (1)                 13,505           -      29,861           -
   Fair value adjustment to
    Veritas deferred
    revenue (1)                  4,738      12,984      10,888      35,265
   Amortization of acquired
    product rights (2)          89,063      85,339     178,423     172,950
   Executive incentive
    bonuses (3)                  1,314       1,083       3,116       3,057
   Stock-based compensation
    (4)                         40,989      45,811      81,733      82,670
   Restructuring (5)             9,578       6,220      28,578      19,478
   Integration (6)                   -           -         441           -
   Amortization of other
    intangible assets (7)       56,926      50,481     113,851     101,095
   Write-down of intangible
    assets (8)                  86,546           -      86,546           -
   Income tax effect on
    above items (9)            (90,391)    (49,870)   (153,677)   (109,559)
   Gain on sale of building
    (10)                             -     (16,768)          -     (16,768)
                            ----------  ----------  ----------  ----------
Non-GAAP net income         $  262,636  $  261,462  $  525,334  $  514,904
                            ==========  ==========  ==========  ==========

NET INCOME PER SHARE -
 DILUTED:
GAAP net income per share   $     0.06  $     0.13  $     0.16  $     0.22
   Stock-based compensation
    adjustment per share,
    net of tax (4)                0.04        0.04        0.07        0.06
   Other non-GAAP
    adjustments per share,
    net of tax (1-3, 5-10)        0.19        0.09        0.35        0.23
                            ----------  ----------  ----------  ----------
Non-GAAP net income per
 share                      $     0.29  $     0.26  $     0.58  $     0.51
                            ==========  ==========  ==========  ==========

SHARES USED TO COMPUTE NET
 INCOME PER SHARE - DILUTED:
Shares used to compute GAAP
 and non-GAAP net income
 per share                     892,759     987,916     901,683   1,018,427
                            ==========  ==========  ==========  ==========


The non-GAAP financial measures included in the tables above are non-GAAP
net revenues, non-GAAP net income and non-GAAP net income per share, which
adjust for the following items: business combination accounting entries,
expenses related to acquisitions, stock-based compensation expense,
restructuring charges and charges related to the amortization of
intangibles, write-downs of intangible assets and certain other items.  We
believe the presentation of these non-GAAP financial measures is useful to
investors, and such measures are used by our management, for the reasons
associated with each of the adjusting items as described below.

(1) Fair value adjustment to Veritas and Altiris deferred revenue.  We
include revenue associated with Veritas and Altiris deferred revenue that
was excluded as a result of purchase accounting adjustments to fair value
because we believe they are reflective of ongoing operating results.

(2) Amortization of acquired product rights.  The amounts recorded as
amortization of acquired product rights arise from prior acquisitions and
are non-cash in nature.  We exclude these expenses because we believe they
are not reflective of ongoing operating results in the period incurred and
are not directly related to the operations of our business.

(3) Executive incentive bonuses.  Consists of bonuses related to the
Veritas and Altiris acquisitions and executive sign-on bonuses for newly
hired executives. We exclude these amounts because they arise from prior
acquisitions and other infrequent events and we believe they are not
directly related to the operations of our business.  For the three and six
months ended September 30, 2007, and September 30, 2006, executive bonuses
were allocated as follows:


                              Three Months Ended       Six Months Ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2007      2006(11)      2007      2006(11)
                            ----------  ----------  ----------  ----------
Sales and marketing         $      467  $      536  $      899  $    1,212
Research and development           160         380         309       1,245
General and administrative         687         167       1,908         600
                            ----------  ----------  ----------  ----------
   Total executive
    incentive bonuses       $    1,314  $    1,083  $    3,116  $    3,057
                            ==========  ==========  ==========  ==========


(4) Stock-based compensation.  Consists of expenses for employee stock
options, restricted stock units, restricted stock awards and employee stock
purchase plan determined in accordance with SFAS 123(R). We exclude these
stock-based compensation expenses because they are non-cash expenses that
we believe are not reflective of ongoing operating results.  Further we
believe it is useful to investors to understand the impact of the
application of SFAS 123(R) to our results of operations.  For the three
months and six months ended September 30, 2007 and September 30, 2006,
stock-based compensation was allocated as follows:


                              Three Months Ended       Six Months Ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2007      2006(11)      2007      2006(11)
                            ----------  ----------  ----------  ----------
Cost of revenues            $    4,499  $    5,183  $    8,895  $    9,165
Sales and marketing             13,957      17,106      28,420      31,290
Research and development        14,841      16,906      29,008      31,004
General and administrative       7,692       6,616      15,410      11,211
                            ----------  ----------  ----------  ----------
   Total stock-based
    compensation            $   40,989  $   45,811  $   81,733  $   82,670
                            ==========  ==========  ==========  ==========


(5) Restructuring. These amounts arise from severance, benefits,
outplacement services, and excess facilities resulting from our company
restructurings and we believe they are not directly related to the ongoing
operation of our business.

(6) Integration.  Consists of expenses incurred for consulting services and
other professional fees associated with integration activities of
acquisitions and we believe they are not directly related to the ongoing
operation of our business.

(7) Amortization of other intangible assets.  The amounts recorded as
amortization of other intangible assets arise from prior acquisitions and
are non-cash in nature. We exclude these expenses because we believe they
are not reflective of ongoing operating results in the period incurred and
not directly related to the operations of our business.

(8) Write-down of intangible assets. During the second quarter of fiscal
2008, management determined that certain tangible and intangible assets and
liabilities of the Data Center Management segment did not meet the long
term strategic objectives of the segment. Accordingly, we have recorded a
write-down of $87 million to value these assets and liabilities at the
respective estimated fair value.

(9) Income tax effect on above items.  This amount adjusts the provision
for income taxes to reflect the effect of the non-GAAP adjustments on
non-GAAP operating income.

(10) Gain on sale of building. During September 2006 quarter we sold our
Milpitas land and buildings for a gain. We exclude the gain on the sale of
the building because we believe it is not reflective of ongoing operating
results in the period incurred and is not directly related to the operation
of our business.

(11) Symantec adopted Staff Accounting Bulletin No. 108, "Considering the
Effects of Prior Year Misstatements when Quantifying Misstatements in
Current Year Financial Statements," or SAB 108, during the March 2007
quarter.  As such, our results for the June and September 2006 fiscal
quarters include the adoption of SAB 108.  We believe the resulting changes
to the previously reported amounts to the quarter are immaterial.  See item
15, "Summary of Significant Accounting Policies" in our March 2007 10-K for
a detailed explanation of the impact of our adoption of SAB 108.




                           SYMANTEC CORPORATION
 Reconciliation of GAAP Revenue Components to Non-GAAP Revenue Components
                                (Unaudited)
                              (In thousands)


                Three Months Ended September  Three Months Ended September
                          30, 2007                    30, 2006 (2)
                ----------------------------- -----------------------------
                           Non-GAAP                      Non-GAAP
                         Adjustments                   Adjustments
                  GAAP       (6)   Non-GAAP     GAAP       (7)   Non-GAAP
                ---------- ------- ---------- ---------- ------- ----------


Net Revenues    $1,419,089 $18,243 $1,437,332 $1,260,408 $12,984 $1,273,392

Revenue By
 Segment: (1)
Security and
 Data
 Management     $  422,464 $   746 $  423,210 $  394,892 $ 2,232 $  397,124
Data Center
 Management     $  398,355 $ 3,992 $  402,347 $  363,778 $10,752 $  374,530
Consumer        $  433,508 $     - $  433,508 $  394,382 $     - $  394,382
Altiris (4)     $   78,424 $13,505 $   91,929 $   40,933 $     - $   40,933
Services        $   86,010 $     - $   86,010 $   66,356 $     - $   66,356
Other (3)       $      328 $     - $      328 $       67 $     - $       67

Revenue by
 Geography:
Americas (5)    $  764,470 $12,222 $  776,692 $  696,367 $ 9,071 $  705,438
EMEA            $  460,485 $ 5,191 $  465,676 $  386,422 $ 3,166 $  389,588
Asia
 Pacific/Japan  $  194,134 $   830 $  194,964 $  177,619 $   747 $  178,366

Total U.S.
 Revenue        $  695,517 $12,027 $  707,544 $  628,614 $ 8,659 $  637,273
Total
 International
 Revenue        $  723,572 $ 6,216 $  729,788 $  631,794 $ 4,325 $  636,119


We believe the non-GAAP revenue measures set forth above are useful to
investors, and such items are used by our management, because revenue
associated with deferred revenue that was excluded as a result of purchase
accounting adjustments to fair value is reflective of ongoing operating
results.

(1) Following our ERP system implementation in the third quarter of fiscal
2007, we completed an analysis of the allocation of maintenance revenues
across our enterprise segments.  Accordingly, we have recast maintenance
revenues for these segments for each quarter of fiscal 2007.  This recast
primarily affected our Data Center Management and Security and Data
Management segments.  In addition, during the June 2007 quarter, we added a
new business segment called Altiris consisting of the Altiris products and
our Ghost, pcAnywhere, and LiveState Delivery products, which moved from
the Security and Data Management segment.  We also moved our Managed
Security Services and DeepSight products to the Services segment from the
Security and Data Management segment.

(2) Symantec adopted Staff Accounting Bulletin No. 108, "Considering the
Effects of Prior Year Misstatements when Quantifying Misstatements in
Current Year Financial Statements," or SAB 108, during the March 2007
quarter.  As such, our results for the September 2006 fiscal quarter
include the adoption of SAB 108.  We believe the resulting changes to the
previously reported amounts to the quarter are immaterial.  See item 15,
"Summary of Significant Accounting Policies" in our March 2007 10-K for a
detailed explanation of the impact of our adoption of SAB 108.

(3) The other category contains divested product lines and/or product lines
nearing the end of their life cycle.  See item 15, Footnote 15 in our March
2007 10-K.

(4) Altiris was acquired on April 6, 2007.  As a result, the September 2007
quarter includes the Altiris products combined with the Ghost, pcAnywhere,
and LiveState Delivery products, and the September 2006 quarter excludes
the Altiris products.

(5) The Americas  includes the United States, Latin America, and Canada.

(6) The non-GAAP adjustments add back the deferred revenue for Veritas and
Altiris that was excluded as a result of adjustments to fair value.

(7) The non-GAAP adjustments add back the deferred revenue for Veritas that
was excluded as a result of adjustments to fair value.




                           SYMANTEC CORPORATION
   Reconciliation of GAAP Deferred Revenue to Non-GAAP Deferred Revenue
                                (Unaudited)
                              (In thousands)


                                                September 30, September 30,
                                                    2007        2006 (1)
                                                ------------- -------------
Deferred revenue reconciliation
GAAP deferred revenue                           $   2,598,597 $   2,325,355
   Add back:
   Fair value adjustment to Veritas deferred
    revenue (2)                                         7,235        22,263
   Fair value adjustment to Altiris deferred
    revenue (2)                                        18,653             -
                                                ------------- -------------
Non-GAAP deferred revenue                       $   2,624,485 $   2,347,618
                                                ============= =============


We believe the non-GAAP measure set forth above is useful to investors, and
such item is used by our management, because deferred revenue that was

excluded as a result of purchase accounting adjustments to fair value is
reflective of ongoing operating results.

(1) Symantec adopted Staff Accounting Bulletin No. 108, "Considering the
Effects of Prior Year Misstatements when Quantifying Misstatements in
Current Year Financial Statements," or SAB 108, during the March 2007
quarter.  As such, our results for the September 2006 fiscal quarter
include the adoption of SAB 108.  We believe the resulting changes to the
previously reported amounts to the quarter are immaterial.  See item 15,
"Summary of Significant Accounting Policies" in our March 2007 10-K for a
detailed explanation of the impact of our adoption of SAB 108.

(2) The non-GAAP adjustments add back the deferred revenue for Veritas and
Altiris that was excluded as a result of adjustments to fair value.




                           SYMANTEC CORPORATION
Guidance - Reconciliation of Projected GAAP Revenue and Earnings per Share
                to Non-GAAP Revenue and Earnings per Share
                                (Unaudited)



                                                              Q3 FY'08
                                                          -----------------
Revenue reconciliation (in millions)
GAAP revenue range                                        $ 1,410 - $ 1,450
   Add back:
   Fair value adjustment to Veritas deferred revenue (1)                  5
   Fair value adjustment to Altiris deferred revenue (1)                 10
                                                          -----------------
Non-GAAP revenue range                                    $ 1,425 - $ 1,465
                                                          =================




Earnings per share reconciliation
GAAP earnings per share range                             $   0.06 - $ 0.11
   Add back:
   Stock-based compensation, net of tax (2)                            0.04
   Fair value adjustment to Veritas and Altiris deferred
    revenue, amortization of  acquired product rights and
    other intangible assets, and restructuring, net of
    tax (1,3,4)                                                        0.15
                                                          -----------------
Non-GAAP earnings per share range                         $   0.25 - $ 0.30
                                                          =================

We believe that providing a forecast of the non-GAAP items set forth above
is useful to investors, and such items are used by our management, for the
reasons associated with each of the adjusting items as described below.

(1) Fair value adjustment to Veritas and Altiris deferred revenue.  We
include revenue associated with Veritas and Altiris deferred revenue that
was excluded as a result of purchase accounting adjustments to fair value
because we believe they are reflective of ongoing operating results.

(2) Stock-based compensation, net of tax.  Consists of expenses for
employee stock options, restricted stock units, restricted stock awards and
employee stock purchase plan determined in accordance SFAS 123(R). We
exclude these stock-based compensation expense because they are non-cash
expenses that we believe are not reflective of ongoing operating results.
Further, we believe it is useful to investors to understand the impact of
the application of SFAS 123(R) to our results of operations.

(3) Amortization of acquired product rights and other intangible assets.
The amounts recorded as amortization of acquired product rights and other
intangible assets arise from prior acquisitions and are non-cash in nature.
 We exclude these expenses because we believe they are not reflective of
ongoing operating results in the period incurred and not directly related
to the operation of our business.

(4) Restructuring.  This amount arises from severance, benefits,
outplacement services, and excess facilities resulting from our company
restructuring. We exclude this amount because we believe it is not
reflective of ongoing operating results in the period incurred and not
directly related to the operation of our business.




                           SYMANTEC CORPORATION
       Guidance - Reconciliation of Projected GAAP Deferred Revenue
                       to Non-GAAP Deferred Revenue
                                (Unaudited)


                                                          December 31, 2007
                                                          -----------------
Deferred revenue reconciliation (in millions)
GAAP deferred revenue                                     $ 2,635 - $ 2,785
   Add back:
   Fair value adjustment to Veritas deferred revenue (1)                  5
   Fair value adjustment to Altiris deferred revenue (1)                 10
                                                          -----------------
Non-GAAP deferred revenue                                 $ 2,650 - $ 2,800
                                                          =================

We believe that providing the non-GAAP item set forth above is useful to
investors, and such item is used by our management, for the reason
described below.

(1) Fair value adjustment to Veritas and Altiris deferred revenue.  We
include deferred revenue associated with Veritas and Altiris that was
excluded as a result of purchase accounting adjustments to fair value
because we believe they are reflective of ongoing operating results.

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