SOURCE: Symantec

January 23, 2008 16:51 ET

Symantec Reports Strong Third Quarter Results -- Tables Included

Continual Operational Improvements Drove Revenue and Earnings Performance

CUPERTINO, CA--(Marketwire - January 23, 2008) - Symantec Corp. (NASDAQ: SYMC) today reported the results of its third quarter of fiscal year 2008, ended Dec. 28, 2007. GAAP revenue for the quarter was $1.52 billion and non-GAAP revenue was $1.53 billion. Non-GAAP revenue grew 15 percent versus the December 2006 period of $1.33 billion.

GAAP deferred revenue as of Dec. 28, 2007 was $2.88 billion, up 12 percent compared to $2.56 billion on Dec. 29, 2006. Non-GAAP deferred revenue as of Dec. 28, 2007 reached $2.9 billion, up 12 percent compared to $2.58 billion on Dec. 29, 2006.

Cash flow from operating activities for the December 2007 quarter was $462 million, compared to $454 million for the December 2006 quarter.

GAAP Results: GAAP net income for the December 2007 quarter was $132 million, up 13 percent compared to $117 million in the December 2006 quarter. Diluted earnings per share of $0.15 was up 25 percent compared to $0.12 for the same quarter last year.

Non-GAAP Results: Non-GAAP net income for the December 2007 quarter was $292 million, up 16 percent compared to $251 million for the same quarter last year. Non-GAAP diluted earnings per share were $0.33, up 27 percent compared to $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.

"The team's continued focus on operational improvements and product quality produced great results in the December quarter," said John W. Thompson, chairman and chief executive officer, Symantec. "I'm very pleased with the strength of our business and our outlook for the March quarter."

Financial Highlights

For the quarter, Symantec's Consumer segment represented 29 percent of total non-GAAP revenue and grew 8 percent year-over-year. The Security and Data Management segment represented 29 percent of total revenue and grew 9 percent year-over-year. The Data Center Management segment represented 29 percent of total revenue and grew 11 percent year-over-year. Services represented 6 percent of total revenue and grew 40 percent year-over-year. The Altiris segment, including revenues from the acquisition of Altiris and Symantec's Ghost, pcAnywhere and LiveState Delivery solutions, represented 7 percent of total revenue. The standalone Altiris solutions contributed a record $65 million in non-GAAP revenue.

International revenues represented 53 percent of total non-GAAP revenue in the December 2007 quarter and grew 21 percent year-over-year. The Europe, Middle East and Africa region represented 35 percent of total revenue for the quarter and grew 26 percent year-over-year. The Asia Pacific/Japan revenue for the quarter represented 14 percent of total revenue and grew 19 percent year-over-year. The Americas, including the United States, Latin America and Canada, represented 51 percent of total revenue and increased 8 percent year-over-year.

March 2008 Quarter Guidance

For the March 2008 quarter, GAAP revenue is estimated between $1.50 billion and $1.54 billion. Non-GAAP revenue for the March 2008 quarter is estimated between $1.51 billion and $1.55 billion.

GAAP diluted earnings per share are estimated between $0.16 and $0.18. Non-GAAP diluted earnings per share are estimated between $0.33 and $0.35.

GAAP deferred revenue is expected to be in the range of $2.94 billion and $3.04 billion. Non-GAAP deferred revenue is expected to be in the range of $2.95 billion and $3.05 billion.

Fiscal Year 2008 Guidance

Symantec is raising its guidance for fiscal year 2008 as follows:

For the fiscal year ending March 28, 2008, GAAP revenue is estimated in the range of $5.835 billion to $5.875 billion. Non-GAAP revenue is estimated in the range of $5.90 billion to $5.94 billion.

GAAP diluted earnings per share is estimated between $0.46 and $0.48. Non-GAAP diluted earnings per share is estimated between $1.24 and $1.26.

For the fiscal year 2008, cash flow from operating activities is expected to be greater than the $1.67 billion reported for fiscal year 2007.

Quarterly Highlights

--  Symantec signed a record 554 contracts worldwide versus 409 contracts
    in the same period a year ago worth more than $300,000 each. Improved sales
    execution led to the 35 percent increase in signed large contracts from the
    same period a year ago. Of the 554 contracts, 127 contracts were worth more
    than $1 million each versus 115 contracts in the same period a year ago. In
    the December 2007 quarter, almost 80 percent of our large deals were
    multiple product deals.
    
--  Symantec signed new or extended agreements with customers including
    The Coca-Cola System, one of the world's largest manufacturers,
    distributors and marketers of nonalcoholic beverage concentrates and
    syrups; eBay Inc., the world's online marketplace; Citizens Business Bank,
    an award-winning California commercial bank with 44 branches and more than
    $6 billion in assets; Czech Ministry of Finance; E.ON UK, part of one of
    the major public utility companies in Europe; CANTV, a publicly-owned
    telecommunications service provider in Venezuela; MTR Corp., serving 3.4
    million railway passengers each weekday in Hong Kong; Informing Healthcare
    for Wales, the Welsh Assembly Government program set up to improve health
    services in Wales by introducing new ways of accessing, using and storing
    information; TIVIT Tecnologia da Informacão S.A., a Brazilian company
    offering integrated information technology and business process outsourcing
    solutions; Rabobank Group, a full-range financial services provider founded
    on cooperative principles and a global leader in food and agricultural
    financing and in sustainability-oriented banking; Suncorp Metway Ltd, a top
    20 listed company in Australia with more than 8 million customers and
    17,000 employees; Standard Chartered Bank, the leading international bank
    in Asia, Middle East and Africa, with wholesale and retail banking
    customers spread across the globe; and Serviço de Estrangeiros e
    Fronteiras, the Portuguese aliens and border security service.
    

Conference Call

Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss the fiscal third quarter, ended Dec. 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 more 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



                                               December 31,    March 31,
                                                  2007           2007
                                              -------------- --------------
                                                     (In thousands)
                                               (Unaudited)

ASSETS
Current assets:
  Cash and cash equivalents                   $    1,484,489 $    2,559,034
  Short-term investments                             500,107        428,619
  Trade accounts receivable, net                     901,615        666,968
  Inventories                                         34,591         42,183
  Deferred income taxes                              171,198        165,323
  Other current assets(1)(2)                         282,598        208,920
                                              -------------- --------------
     Total current assets                          3,374,598      4,071,047
Property and equipment, net                        1,039,510      1,092,240
Acquired product rights, net                         733,278        909,878
Other intangible assets, net                       1,299,083      1,245,638
Goodwill                                          11,208,960     10,340,348
Other long-term assets                                53,661         63,987
Long-term deferred income taxes                       58,455         27,732
                                              -------------- --------------
     Total assets                             $   17,767,545 $   17,750,870
                                              ============== ==============

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
  Accounts payable                            $      162,871 $      149,131
  Accrued compensation and benefits                  410,171        307,824
  Current deferred revenue                         2,497,697      2,387,733
  Income taxes payable                                78,997        238,486
  Short-term borrowing                               200,000              -
  Other current liabilities (1)                      231,686        234,915
                                              -------------- --------------
     Total current liabilities                     3,581,422      3,318,089
Convertible senior notes                           2,100,000      2,100,000
Long-term deferred revenue                           379,476        366,050
Long-term deferred tax liabilities                   219,778        343,848
Long-term income taxes payable                       459,126              -
Other long-term obligations                           98,662         21,370
                                              -------------- --------------
     Total liabilities                             6,838,464      6,149,357
Stockholders’ equity:
  Common stock                                         8,452          8,994
  Capital in excess of par value                   9,207,367     10,061,144
  Accumulated other comprehensive income             199,488        182,933
  Retained earnings                                1,513,774      1,348,442
                                              -------------- --------------
     Total stockholders’ equity                   10,929,081     11,601,513
                                              -------------- --------------
        Total liabilities and stockholders'
         equity                               $   17,767,545 $   17,750,870
                                              ============== ==============


(1) During the September 2007 quarter, 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, and we recorded a write-down of $87 million to value these
    assets and liabilities at the respective estimated fair value. We
    adjusted this amount to $93 million in the December 2007 quarter. The
    fair value of these assets, totaling $7 million, is included in Other
    current assets and liabilities of $3 million are included in Other
    current liabilities. On January 10, 2008 we signed an agreement to sell
    these assets.

(2) During the December 2007 quarter, following a review of our real estate
    holdings, we classified certain long-term assets as held for sale. We
    reclassed the assets, totaling $109 million, to Other current assets,
    and expect to complete the sale of these assets by the end of the first
    quarter of fiscal 2009.



                           SYMANTEC CORPORATION
                Condensed Consolidated Statements of Income

                           Three Months Ended         Nine Months Ended
                              December 31,              December 31,
                        ------------------------  ------------------------
                            2007       2006 (1)       2007       2006 (1)
                        -----------  -----------  -----------  -----------
                                            (Unaudited)
                         (In thousands, except net income per share data)
Net revenues:
  Content,
   subscriptions, and
   maintenance          $ 1,167,443  $   993,889  $ 3,371,126  $ 2,866,460
  Licenses                  347,808      321,984      963,552      975,689
                        -----------  -----------  -----------  -----------
   Total net revenues     1,515,251    1,315,873    4,334,678    3,842,149
Cost of revenues:
  Content,
   subscriptions, and
   maintenance              204,355      213,977      619,593      612,637
  Licenses                   10,304       12,015       31,434       39,466
  Amortization of
   acquired product
   rights                    84,502       84,511      262,924      257,460
                        -----------  -----------  -----------  -----------
    Total cost of
     revenues               299,161      310,503      913,951      909,563
                        -----------  -----------  -----------  -----------
Gross profit              1,216,090    1,005,370    3,420,727    2,932,586
Operating expenses:
    Sales and marketing     627,980      500,067    1,791,672    1,432,105
    Research and
     development (2)        225,293      216,969      671,928      648,414
    General and
     administrative          82,600       78,820      254,850      237,517
    Amortization of
     other purchased
     intangible assets       54,996       50,476      168,847      151,570
    Restructuring            23,305            -       51,883       19,478
    Write-down of
     assets (3)               6,142            -       92,688            -
                        -----------  -----------  -----------  -----------
      Total operating
       expenses           1,020,316      846,332    3,031,868    2,489,084
                        -----------  -----------  -----------  -----------
Operating income            195,774      159,038      388,859      443,502
    Interest income          19,997       28,741       59,997       91,540
    Interest expense         (7,477)      (6,257)     (20,385)     (20,987)
     Other income
      (expense), net         (2,348)      (3,897)         883       11,502
                        -----------  -----------  -----------  -----------
Income before income
 taxes                      205,946      177,625      429,354      525,557

Provision for income
     taxes                   74,056       60,855      151,890      182,071
                        -----------  -----------  -----------  -----------
Net income              $   131,890  $   116,770  $   277,464  $   343,486
                        ===========  ===========  ===========  ===========
Net income per share --
 basic                  $      0.15  $      0.13  $      0.32  $      0.35
                        ===========  ===========  ===========  ===========
Net income per share --
 diluted                $      0.15  $      0.12  $      0.31  $      0.34
                        ===========  ===========  ===========  ===========
Shares used to compute
 net income per share -
 basic                      859,997      932,112      875,971      975,900
                        ===========  ===========  ===========  ===========
Shares used to compute
 net income per share -
 diluted                    876,221      963,309      893,794    1,000,020
                        ===========  ===========  ===========  ===========


(1) We adopted Staff Accounting Bulletin No. 108, "Considering the Effects
    of Prior Year Misstatements when Quantifying Misstatements in Current
    Year Financial Statements," or SAB 108, in fiscal year ended
    March 2007, and our results for the three and nine months ended
    December 2006 include the adoption of SAB 108.   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 December 2007 quarter we recorded a $1 million write-down on
    a research and development facility classified as held for sale.

(3) During the September 2007 quarter, 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, and we recorded a write-down of $87 million to value these
    assets and liabilities at the respective estimated fair value. We
    adjusted this amount to $93 million in the December 2007 quarter. On
    January 10, 2008 we signed an agreement to sell these assets.



                           SYMANTEC CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                    Nine Months Ended
                                                      December 31,
                                              ----------------------------
                                                  2007         2006 (1)
                                              -------------  -------------
                                                      (Unaudited)

                                                     (In thousands)

OPERATING ACTIVITIES:
Net income                                    $     277,464  $     343,486
  Adjustments to reconcile net income to net
   cash provided by operating activities:
  Depreciation and amortization of property
   and equipment                                    191,170        191,115
  Amortization                                      427,234        418,361
  Stock-based compensation expense                  121,151        118,746
  Impairment of equity investments                        -          2,841

  Write-down of assets (2)                           93,888              -

  Fixed assets and intangibles write-off                  -          1,214
  Deferred income taxes                            (178,647)       (79,067)
  Income tax benefit from stock options              27,730         25,641
  Excess income tax benefit from stock
   options                                          (18,307)       (19,588)
  (Gain) loss on sale of property and
   equipment                                          3,253        (16,716)
  Net change in assets and liabilities,
   excluding effects of acquisitions:
    Trade accounts receivable, net                 (165,392)       (47,455)
    Inventories                                       9,224          8,342
    Accounts payable                                (13,249)        25,073
    Accrued compensation and benefits                83,794         12,078
    Deferred revenue                                  9,466        221,528
    Income taxes payable                            215,462        (87,224)
    Other operating assets and liabilities           60,042        (19,124)
                                              -------------  -------------
Net cash provided by operating activities         1,144,283      1,099,251
INVESTING ACTIVITIES:
  Capital expenditures                             (209,129)      (349,595)
  Proceeds from sale of property and
   equipment                                              -         86,904
  Purchase of intangible assets                           -        (13,300)
  Cash payments for business acquisitions,
   net of cash and cash equivalents acquired     (1,150,683)       (25,015)
  Purchases of available-for-sale securities       (825,104)      (129,566)
  Proceeds from sales of available-for-sale
   securities                                       830,903        295,458
                                              -------------  -------------
Net cash (used in) provided by investing
 activities                                      (1,354,013)      (135,114)
FINANCING ACTIVITIES:
  Sale of common stock warrants                           -        326,102
  Repurchase of common stock                     (1,299,976)    (2,251,314)
  Net proceeds from sales of common stock
   under employee stock benefit plans               164,162        169,256
  Proceeds from debt issuance                             -      2,067,762
  Purchase of bond hedge                                  -       (592,490)
  Proceeds from short-term borrowing                200,000              -
  Income tax benefit reclassed from
   operations                                        18,307         19,588
  Repayment of long term liability                   (9,913)      (520,000)
  Restricted stock issuance                          (3,742)             -
                                              -------------  -------------
Net cash used in financing activities              (931,162)      (781,096)
Effect of exchange rate fluctuations on cash
 and cash equivalents                                66,347         93,340
                                              -------------  -------------
Net (decrease) increase in cash and cash
 equivalents                                     (1,074,545)       276,381
Beginning cash and cash equivalents               2,559,034      2,315,622
                                              -------------  -------------
Ending cash and cash equivalents              $   1,484,489  $   2,592,003
                                              =============  =============

(1) We adopted Staff Accounting Bulletin No. 108, "Considering the Effects
    of Prior Year Misstatements when Quantifying Misstatements in Current
    Year Financial Statements," or SAB 108, in fiscal year ended
    March 2007, and our results for the three and nine months ended
    December 2006 include the adoption of SAB 108.   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 September 2007 quarter, 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, and we recorded a write-down of $87 million to value these
    assets and liabilities at the respective estimated fair value. We
    adjusted this amount to $93 million in the December 2007 quarter.
    On January 10, 2008 we signed an agreement to sell these assets. During
    the December 2007 quarter, we also recorded a $1 million write-down on
    a facility classified as held for sale.



                          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         Nine Months Ended
                              December 31,              December 31,
                        ------------------------  ------------------------
                            2007       2006(10)       2007       2006(10)
                        -----------  -----------  -----------  -----------
NET REVENUES:
GAAP net revenues       $ 1,515,251  $ 1,315,873  $ 4,334,678  $ 3,842,149
  Deferred revenue
   related to
   acquisitions (1)          13,775       10,468       54,524       45,733
                        -----------  -----------  -----------  -----------
Non-GAAP net revenues   $ 1,529,026  $ 1,326,341  $ 4,389,202  $ 3,887,882
                        ===========  ===========  ===========  ===========

NET INCOME :
GAAP net income:        $   131,890  $   116,770  $   277,464  $   343,486
  Deferred revenue
   related to
   acquisitions (1)          13,775       10,468       54,524       45,733
  Amortization of
   acquired product
   rights (2)                84,502       84,512      262,925      257,462
  Executive incentive
   bonuses (3)                  424          897        3,540        3,954
  Stock-based
   compensation (4)          39,420       36,117      121,153      118,787
  Restructuring (5)          23,305            -       51,883       19,478
  Integration (6)                 -            -          441            -
  Amortization of other
   intangible assets
   (2)                       54,996       50,476      168,847      151,571
  Write-down of assets
   (7)                        7,342            -       93,888            -
  Income tax effect on
   above items (8)          (60,629)     (48,434)    (214,306)    (157,993)
  Gain on sale of
   assets (9)                (3,277)           -       (3,277)     (16,768)
                        -----------  -----------  -----------  -----------
Non-GAAP net income     $   291,748  $   250,806  $   817,082  $   765,710
                        ===========  ===========  ===========  ===========

NET INCOME PER SHARE -
 DILUTED:
GAAP net income per
 share                  $      0.15  $      0.12  $      0.31  $      0.34
  Stock-based
   compensation
   adjustment per
   share, net of tax(4)        0.04         0.03         0.11         0.09
  Other non-GAAP
   adjustments per
   share, net of tax
   (1-3, 5-9)                  0.14         0.11         0.49         0.34
                        -----------  -----------  -----------  -----------
Non-GAAP net income per
 share                  $      0.33  $      0.26  $      0.91  $      0.77
                        ===========  ===========  ===========  ===========

SHARES USED TO COMPUTE
 NET INCOME PER SHARE -
 DILUTED:
Shares used to compute
 GAAP and non-GAAP net
 income per share           876,221      963,309      893,794    1,000,020
                        ===========  ===========  ===========  ===========




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 intangible
assets, write-downs of intangible assets and certain other items.  We
believe the presentation of these non-GAAP financial measures, when taken
together with the corresponding GAAP financial measures, provides
meaningful supplemental information regarding the Company's operating
performance for the reasons discussed below.  Our management uses these
non-GAAP financial measures in assessing the Company's operating results,
as well as when planning, forecasting and analyzing future periods. We
believe that these non-GAAP financial measures also facilitate comparisons
of the Company's performance to prior periods and to our peers and that
investors benefit from an understanding of these non-GAAP financial
measures.

(1) Fair value adjustment to deferred revenue.  We have completed numerous
    business combinations and acquisitions for a variety of strategic
    purposes over the past several years.  As is the case with our existing
    business, at the time of acquisition, these acquired businesses
    recorded deferred revenue related to past transactions for which
    revenue would be recognized in future periods as revenue recognition
    criteria are satisfied. The purchase accounting entries for these
    acquisitions require us to write down a portion of this deferred
    revenue to its then current fair value.  Consequently, in post
    acquisition periods, we do not recognize the full amount of this
    deferred revenue.  When measuring the performance of our business,
    however, we add back non-GAAP revenue associated with certain types of
    deferred revenue that were excluded as a result of these purchase
    accounting adjustments, as we believe that this provides information
    about the operating impact of the acquired businesses in a manner
    consistent with the revenue recognition for our pre-existing products
    and services.  We believe that the inclusion of this revenue provides
    useful information to our management as well as to investors.

(2) Amortization of acquired product rights and other intangible assets.
    When conducting internal development of intangible assets, accounting
    rules require that we expense the costs as incurred.  In the case of
    acquired businesses, however, we are required to allocate a portion of
    the purchase price to the accounting value assigned to intangible
    assets acquired and amortize this amount over the estimated useful
    lives of the acquired intangibles. The acquired company, in most cases,
    has itself previously expensed the costs incurred to develop the
    acquired intangible assets, and the purchase price allocated to these
    assets is not necessarily reflective of the cost we would incur in
    developing the intangible asset. We eliminate this amortization
    charge from our non-GAAP operating results to provide better
    comparability of pre and post-acquisition operating results and
    comparability to results of businesses utilizing internally developed
    intangible assets.

(3) Executive incentive bonuses. We have excluded bonuses related to
    acquisitions and executive sign-on bonuses for newly hired executives.
    We expect the benefit from these hires and retentions to extend over an
    indeterminate future period, but under GAAP we are required to expense
    the entire cost of the bonus in the period paid.  We exclude these
    amounts to provide better comparability of the periods that include and
    do not include these charges. We believe that investors benefit from an
    understanding of our operating results for the periods presented
    without giving effect to these charges.

(4) Stock-based compensation. Consists of expenses for employee stock
    options, restricted stock units, restricted stock awards and our
    employee stock purchase plan determined in accordance with Statement
    of Financial Accounting Standards Number 123(R), or SFAS 123(R). When
    evaluating the performance of our individual business units and
    developing short and long term plans, we do not consider stock-based
    compensation charges. Our management team is held accountable for
    cash-based compensation, but we believe that management is limited in
    its ability to project the impact of stock-based compensation and
    accordingly is not held accountable for its impact on our operating
    results. Although stock-based compensation is necessary to attract
    and retain quality employees, our consideration of stock based
    compensation places its primary emphasis on overall shareholder
    dilution rather than the accounting charges associated with such
    grants. In addition, for comparability purposes, we believe it is
    useful to provide a non-GAAP financial measure that excludes
    stock-based compensation in order to better understand the
    long-term performance of our core business and to facilitate the
    comparison of our results to the results of our peer companies.
    Furthermore, unlike cash compensation, the value of stock-based
    compensation is determined using a complex formula that
    incorporates factors, such as market volatility, that are
    beyond our control. Further, we believe it is useful to
    investors to understand the impact of SFAS 123(R) to our
    results of operations. For the three months and nine months ended
    December 31, 2007 and December 31, 2006, stock-based compensation
    was allocated as follows:



                           Three Months Ended         Nine Months Ended
                              December 31,              December 31,
                           2007          2006         2007        2006
                        -----------  -----------  -----------  -----------
Cost of revenues        $     3,879  $     3,819  $    12,774  $    12,984
Sales and marketing          14,013       12,520       42,433       43,771
Research and
 development                 14,431       13,803       43,439       44,847
General and
 administrative               7,097        5,975       22,507       17,185
                        -----------  -----------  -----------  -----------
  Total stock-based
   compensation         $    39,420  $    36,117  $   121,153  $   118,787
                        ===========  ===========  ===========  ===========


(5) Restructuring. We have engaged in various restructuring activities over
    the past several years that have resulted in costs associated with
    severance, benefits, outplacement services, and excess facilities. Each
    restructuring has been a discrete event based on a unique set of
    business objectives or circumstances, and each has differed from the
    others in terms of its operational implementation, business impact and
    scope. We do not engage in restructuring activities in the ordinary
    course of business. While our operations previously benefited from the
    employees and facilities covered by our various restructuring charges,
    these employees and facilities have benefited different parts of our
    business in different ways, and the amount of these charges has varied
    significantly from period to period.  We believe that it is important
    to understand these charges; however, we do not believe that these
    charges are indicative of future operating results and that investors
    benefit from an understanding of our operating results without giving
    effect to them.

(6) Integration. These charges consist of expenses incurred for consulting
    services and other professional fees associated with integration
    activities of acquisitions.  Because these expenses are non-recurring
    and unique to specific acquisitions, we believe they are not
    indicative of future operating results and that investors benefit from
    an understanding of our operating results without giving effect to
    them.

(7) Write-down of assets. During the September 2007 quarter, 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 and we recorded a write-down of
    $87 million to value these assets and liabilities at the respective
    estimated fair value. We adjusted this amount to $93 million in the
    December 2007 quarter. On January 10, 2008 we signed an agreement
    to sell these assets.  During the December 2007 quarter, we also
    recorded a $1 million write-down on a facility classified as held
    for sale.

(8) 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.

(9) Gain on sale of assets. We exclude these gains because each is a unique
    one-time occurrence that is not closely related to, or a function of,
    our ongoing operations.

(10) We adopted Staff Accounting Bulletin No. 108, "Considering the Effects
     of Prior Year Misstatements when Quantifying Misstatements in Current
     Year Financial Statements," or SAB 108, in fiscal year ended
     March 2007, and our results for the three and nine months ended
     December 2006 include the adoption of SAB 108. 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              Three Months Ended
                  December 31, 2007              December 31, 2006 (1)
             ----------------------------- -------------------------------
                        Non-GAAP                        Non-GAAP
                      Adjustments                     Adjustments
               GAAP       (2)    Non-GAAP     GAAP        (2)    Non-GAAP
             ---------- ------- ---------- ----------  -------- ----------


Net Revenues $1,515,251 $13,775 $1,529,026 $1,315,873  $ 10,468 $1,326,341

Revenue By
 Segment: (3)
Security and
 Data
 Management  $  446,839 $ 1,364 $  448,203 $  411,140  $  1,558 $  412,698
Data Center
 Management     440,416   3,139    443,555    390,934     8,910    399,844
Consumer        440,206       -    440,206    406,145         -    406,145
Altiris (4)      91,106   9,272    100,378     39,151         -     39,151
Services         96,189       -     96,189     68,517         -     68,517
Other (5)    $      495 $     - $      495 $      (14) $      - $      (14)

Revenue by
 Geography:

Americas (6) $  779,817 $ 9,258 $  789,075 $  720,492  $  6,831 $  727,323
EMEA            524,981   3,879    528,860    417,931     2,988    420,919
Asia
 Pacific/
 Japan       $  210,453 $   638 $  211,091 $  177,450  $    649 $  178,099

Total U.S.
 Revenue     $  708,186 $ 9,080 $  717,266 $  650,721  $  6,467 $  657,188
Total
 International
 Revenue     $  807,065 $ 4,695 $  811,760 $  665,152  $  4,001 $  669,153



We include certain non-GAAP revenue and deferred revenue components in the
tracking and forecasting of our revenue and management of our business.
This includes non-GAAP revenue associated with deferred revenue that was
excluded as a result of purchase accounting adjustments related to
acquisitions. We believe the non-GAAP revenue measures set forth above
are useful to investors, and such items are used by our management, because
this revenue is reflective of our ongoing operating results.

(1) We adopted Staff Accounting Bulletin No. 108, "Considering the Effects
of Prior Year Misstatements when Quantifying Misstatements in Current Year
Financial Statements," or SAB 108, in fiscal year ended March 2007, and our
results for the three and nine months ended December 2006 include the
adoption of SAB 108. 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) We have completed numerous business combinations and acquisitions for
a variety of strategic purposes over the past several years. As is the case
with our existing business, at the time of acquisition, these acquired
businesses had recorded deferred revenue related to past transactions for
which revenue would be recognized in future periods as revenue recognition
criteria are satisfied. The purchase accounting entries for these
acquisitions require us to write down a portion of this deferred revenue
to its then current fair value. Consequently, in post acquisition periods,
we do not recognize the full amount of this deferred revenue. When
measuring the performance of our business, however, we add back non-GAAP
revenue associated with certain types of deferred revenue that were
excluded as a result of these purchase accounting adjustments, as we
believe that this provides information about the operating impact of the
acquired businesses in a manner consistent with the revenue recognition
for our pre-existing products and services.  We believe that the inclusion
of this revenue provides useful information to our management as well as
to investors.

(3) Following our ERP system implementation in the December 2006 quarter,
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. During the September 2007 quarter,
we recast certain amounts from the Services segment to the Security and
Data Management segment.

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

(5) Other includes 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.

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







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


                                                               As of:
                                                         December 31, 2007
                                                         ------------------
Deferred revenue reconciliation
GAAP deferred revenue                                    $        2,877,173
   Add back:
   Deferred revenue related to acquisitions (1)                      19,856
                                                         ------------------
Non-GAAP deferred revenue                                $        2,897,029
                                                         ==================


We include certain non-GAAP revenue and deferred revenue components in the
tracking and forecasting of our revenue and management of our business.
This includes non-GAAP revenue associated with deferred revenue that was
excluded as a result of purchase accounting adjustments related to
acquisitions. We believe the non-GAAP deferred revenue measures set forth
above are useful to investors, and such items are used by our management,
because this revenue is reflective of our ongoing operating results.

(1) We have completed numerous business combinations and acquisitions for a
variety of strategic purposes over the past several years. As is the case
with our existing business, at the time of acquisition, these acquired
businesses had recorded deferred revenue related to past transactions
for which revenue would be recognized in future periods as revenue
recognition criteria are satisfied. The purchase accounting entries for
these acquisitions require us to write down a portion of this deferred
revenue to its then current fair value. Consequently, in post acquisition
periods, we do not recognize the full amount of this deferred revenue.
When measuring the performance of our business, however, we add back
certain types of deferred revenue that were excluded as a result of these
purchase accounting adjustments, as we believe that this provides
information about the operating impact of the acquired businesses in a
manner consistent with the revenue recognition for our pre-existing
products and services. We believe that the inclusion of this deferred
revenue provides useful information to our management as well as to
investors.





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


                                          Three Months      Twelve Months
                                             Ended:            Ended:
                                         March 31, 2008    March 31, 2008
                                        ----------------- -----------------
Revenue reconciliation (in millions)
GAAP revenue range                      $ 1,500 - $ 1,540 $ 5,835 - $ 5,875
   Add back:
   Deferred revenue related to
    acquisitions (1)                                  10                65
                                        ----------------- -----------------
Non-GAAP revenue range                  $ 1,510 - $ 1,550 $ 5,900 - $ 5,940
                                        ================= =================



Earnings per share reconciliation
GAAP earnings per share range           $   0.16 - $ 0.18 $   0.46 - $ 0.48
   Add back:
   Stock-based compensation, net of tax
    (2)                                              0.04              0.15
   Deferred revenue related to
    acquisitions, amortization of
    acquired product rights and other
    intangible assets, and
    restructuring net of tax  (1,3,4)                0.13              0.63
                                        ----------------- -----------------
Non-GAAP earnings per share range       $   0.33 - $ 0.35 $   1.24 - $ 1.26
                                        ================= =================

                                              As of:
                                          March 31, 2008
                                        -----------------
Deferred revenue reconciliation (in
 millions)
GAAP deferred revenue                   $ 2,940 - $ 3,040
   Add back:
   Deferred revenue related to
    acquisitions (1)                                   10
                                        -----------------
Non-GAAP deferred revenue               $ 2,950 - $ 3,050
                                        =================


We believe the presentation of these non-GAAP financial measures, when
taken together with the corresponding GAAP financial measures, provide
meaningful supplemental information regarding the Company's operating
performance by excluding certain items that may not be indicative of
the Company's core business, operating results or future outlook. Our
management uses, and believes that investors benefit from referring
to, these non-GAAP financial measures in assessing the Company's
operating results both as a consolidated entity and at the business
unit level, as well as when planning, forecasting and analyzing future
periods. We believe that these non-GAAP financial measures also
facilitate comparisons of the Company's performance to prior periods
and to our peers. These measures are used by our management for the
reasons associated with each of the adjusting items as described below.

(1) Fair value adjustment to deferred revenue. We have completed numerous
business combinations and acquisitions for a variety of strategic purposes
over the past several years. As is the case with our existing business,
at the time of acquisition, these acquired businesses recorded deferred
revenue related to past transactions for which revenue would be recognized
in future periods as revenue recognition criteria are satisfied. The
purchase accounting entries for these acquisitions require us to write
down a portion of this deferred revenue to its then current fair value.
Consequently, in post acquisition periods, we do not recognize the full
amount of this deferred revenue. When measuring the performance of our
business, however, we add back non-GAAP revenue associated with certain
types of deferred revenue that were excluded as a result of these
purchase accounting adjustments, as we believe that this provides
information about the operating impact of the acquired businesses in a
manner consistent with the revenue recognition for our pre-existing
products and services. We believe that the inclusion of this revenue
and deferred revenue provides useful information to our management as
well as to investors.

(2) Stock-based compensation. Consists of expenses for employee stock
options, restricted stock units, restricted stock awards and our employee
stock purchase plan determined in accordance with Statement of Financial
Accounting Standards Number 123(R), or SFAS 123(R). When evaluating the
performance of our individual business units and developing short and
long term plans, we do not consider stock-based compensation charges.
Our management team is held accountable for cash-based compensation,
but we believe that management is limited in its ability to project the
impact of stock-based compensation, and accordingly, is not held
accountable for its impact on our operating results. Although
stock-based compensation is necessary to attract and retain quality
employees, our consideration of stock based compensation places its
primary emphasis on overall shareholder dilution rather than the
accounting charges associated with such grants. In addition, for
comparability purposes, we believe it is useful to provide a
non-GAAP financial measure that excludes stock-based compensation in
order to better understand the long-term performance of our core
business and to facilitate the comparison of our results to the results
of our peer companies. Furthermore, unlike cash compensation, the value
of stock-based compensation is determined using a complex formula that
incorporates factors, such as market volatility, that are beyond our
control. Further, we believe it is useful to investors to understand
the impact of SFAS 123(R) to our results of operations.

(3) Amortization of acquired product rights and other intangible assets.
When conducting internal development of intangible assets, accounting
rules require that we expense the costs as incurred. In the case of
acquired businesses, however, we are required to allocate a portion of
the purchase price to the accounting value assigned to intangible assets
acquired and amortize this amount over the estimated useful lives of the
acquired intangibles. The acquired company, in most cases, has itself
previously expensed the costs incurred to develop the acquired intangible
assets, and the purchase price allocated to these assets is not necessarily
reflective of the cost we would incur in developing the intangible asset.
We eliminate this amortization charge from our non-GAAP operating results
to provide better comparability of pre and post-acquisition operating
results and comparability to results of businesses utilizing internally
developed intangible assets.

(4) Restructuring. We have engaged in various restructuring activities
over the past several years that have resulted in costs associated with
severance, benefits, outplacement services, and excess facilities. Each
restructuring has been a discrete event based on a unique set of
business objectives or circumstances, and each has differed from the
others in terms of its operational implementation, business impact and
scope. We do not engage in restructuring activities in the ordinary course
of business. While our operations previously benefited from the employees
and facilities covered by our various restructuring charges, these
employees and facilities have benefited different parts of our business
in different ways, and the amount of these charges has varied
significantly from period to period.  We believe that it is important
 to understand these charges; however, we do not believe that these
charges are indicative of future operating results and that investors
benefit from an understanding of our operating results without giving
effect to them.

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