SOURCE: Symantec

May 02, 2007 16:05 ET

Symantec Closes Fiscal Year 2007 With Solid March Quarter

Results Underpinned by Strong Deferred Revenue Growth and Cash Flow Generation

CUPERTINO, CA -- (MARKET WIRE) -- May 2, 2007 -- Symantec Corp. (NASDAQ: SYMC) today reported results of its fiscal fourth quarter and the fiscal year 2007, ended March 30, 2007. GAAP revenue for the March 2007 quarter was $1.357 billion and non-GAAP revenue was $1.365 billion. Non-GAAP revenue grew 5 percent over the comparable period a year ago.

For the 2007 fiscal year, GAAP revenue was $5.20 billion and non-GAAP revenue was $5.25 billion. On a non-GAAP basis, 2007 fiscal year revenue grew 5 percent compared to the 2006 fiscal year's non-GAAP revenue of $5 billion.

Symantec adopted Staff Accounting Bulletin 108 during the March quarter. As such, the GAAP and non-GAAP results for the fiscal year 2007 and the fiscal fourth quarter include the adoption of SAB 108. The resulting changes to the previously reported amounts are immaterial to the quarter and fiscal year.

GAAP deferred revenue at the end of March 2007 was $2.75 billion. Non-GAAP deferred revenue grew 19 percent to $2.77 billion compared to $2.32 billion, adjusted for SAB 108 at the end of March 2006.

GAAP Results: GAAP net income for the fiscal fourth quarter was $61 million, compared to $119 million for the same quarter last year. GAAP diluted earnings per share were $0.07, compared to earnings per share of $0.11 for the same quarter last year. For fiscal year 2007, Symantec reported net income of $404 million, compared to net income of $157 million for fiscal year 2006. Diluted earnings per share were $0.41 compared to earnings per share of $0.15 for fiscal year 2006. During the March quarter, GAAP earnings per share were impacted by a $51 million restructuring charge related to our recent reduction in force and further facilities consolidation activities.

Non-GAAP Results: Non-GAAP net income for fiscal fourth quarter was $227 million, compared to $279 million for the same quarter last year. Non-GAAP diluted earnings per share were $0.24, compared to earnings per share of $0.26 for the year-ago quarter. For fiscal year 2007, Symantec reported non-GAAP net income of $992 million, compared to $1.14 billion in fiscal year 2006. Non-GAAP diluted earnings per share for the year were $1.01, compared to earnings per share of $1 for fiscal year 2006. For a detailed reconciliation of our GAAP to non-GAAP results, please refer to the attached consolidated financial statements.

"The actions we implemented over the past few quarters to improve our business operations allowed us to end our fiscal year with a solid March quarter," said John W. Thompson, chairman and chief executive officer, Symantec. "With a more stable operating environment and a much stronger product portfolio, we look forward to a stronger fiscal year 2008."

Financial Highlights

For the quarter, Symantec's Consumer business represented 30 percent of total non-GAAP revenue and grew 11 percent year-over-year. Services represented 5 percent of total revenue and grew 31 percent year-over-year. The Security and Data Management business represented 38 percent of total revenue and grew 2 percent year-over-year. The Data Center Management business represented 27 percent of total revenue and remained flat year-over-year.

International revenues represented 52 percent of total non-GAAP revenue in the fourth quarter and grew 9 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 3 percent year-over-year. The Europe, Middle East, and Africa region represented 32 percent of total revenue for the quarter and grew 7 percent year-over-year.

June Quarter 2007 Guidance

For the June 2007 quarter, GAAP revenue is estimated between $1.275 billion and $1.305 billion. GAAP diluted earnings per share is estimated between $0.00 and $0.02.

Non-GAAP revenue for the quarter is estimated between $1.295 billion and $1.325 billion. Non-GAAP diluted earnings per share is estimated between $0.18 and $0.20.

GAAP deferred revenue is expected to be in the range of $2.71 billion and $2.75 billion. Non-GAAP deferred revenue is expected to be in the range of $2.75 billion and $2.79 billion.

Cash flow from operations is expected to exceed the June 2006 results of $368 million adjusted for SAB 108.

Fiscal Year 2008 Guidance

For the fiscal year ending March 28, 2008, GAAP revenue is estimated between $5.59 billion and $5.69 billion. GAAP diluted earnings per share for the fiscal year ending in March 2007 is expected between $0.45 and $0.50.

Non-GAAP revenue is estimated between $5.65 billion and $5.75 billion. Non-GAAP diluted earnings per share is estimated between $1.10 and $1.15.

Quarterly Highlights

--  Symantec signed 376 contracts worldwide worth more than $300,000 each,
    including 99 worth more than $1 million each, during the quarter.  Of those
    376 contracts, 77 percent were multiple product deals.
--  In North America, Symantec signed new or extended agreements with
    customers including Chevron, the second-largest integrated energy company
    in the United States; San Antonio Independent School District, a K-12
    district serving 55,000 students; Pittsburgh Public Schools, a K-12 school
    district with 29,000 students; Audio Visual Services Corp., a leading
    provider of audiovisual equipment rentals, staging services and related
    technical support; EDS Canada, a wholly owned subsidiary of the global EDS
    Corp.; Los Angeles Unified School District, the second largest school
    district in the nation with 708,000 students and  ESRI, the world leader in
    GIS (geographic information system) mapping software and technology.
--  New or extended agreements with international customers included
    Lufthansa Systems; Beijing Mobile, a subsidiary of China Mobile Ltd., the
    leading mobile services provider in China; MBF, which provides trusted
    solutions that aim to protect and enhance their customers' health and
    financial wellbeing; Hong Kong Air Cargo Terminals Limited, the world's
    leading air cargo terminal operator; IXE Banco S.A., a fast-growing Mexican
    bank; Servicios Liverpool S.A. de C.V., a leading operator of shopping
    centers in Mexico; Lotte Data Communication Co., a leading provider of
    total IT services in Korea; IZB Informatik-Zentrum, the German IT service
    provider and operator for secure datacenters for the Sparkassen finance
    group; Vodafone D2 GmbH, the leading mobile communication provider in
    Germany and Nanya Technology Corp., an innovator in DRAM design,
    manufacturing, and sales.
    
Fiscal Year Highlights
--  Symantec unified its sales force to broaden account and opportunity
    coverage.
--  The company consolidated two ERP systems to drive operational
    efficiencies and improve the ease of transacting business.
--  The consumer team introduced two award-winning and market-leading
    products -- Norton Internet Security 2007 and Norton 360.
--  Symantec entered into a multi-year contract with Hewlett Packard that
    will result in new HP consumer PCs being delivered with a trial copy of
    Norton Internet Security.
--  The Data Center Management Group rolled out the Data Center Foundation
    suite of products, which is the only offering that allows data center
    managers to standardize on solutions from a single vendor across disparate
    operating systems.
--  Symantec repurchased $2.8 billion of its common stock.
--  Global Security Services introduced two new service offerings for
    enterprise customers -- Symantec Operational Services and Symantec
    Residency Services -- which provide enterprise customers with an extended
    range of IT infrastructure management options to incorporate best
    practices, improve efficiencies, and ultimately improve overall IT risk
    management.
--  The Security and Data Management Group launched the Storage Foundation
    Suite to help organizations protect themselves against risks across the
    wide range of e-mail, instant messaging, Web communications, file sharing
    and other information systems within the enterprise.
    
Conference Call

Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss results from the fiscal fourth quarter and fiscal year 2007 results, and to review guidance for the fiscal first quarter and fiscal year 2008. 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 31, 2006 and our Form 10-Q for the quarter ended Dec. 29, 2006. We assume no obligation to update any forward-looking information contained in this press release.

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
                        Consolidated Balance Sheets
                              (In thousands)


                                                  March 31,     March 31,
                                                    2007          2006
                                                ------------- ------------
                                                (unaudited)
ASSETS
Current assets:
 Cash and short-term investments                $   2,987,653 $  2,865,802
 Trade accounts receivable, net                       666,968      670,937
 Inventories                                           42,183       48,687
 Current deferred income taxes                        165,323      131,833
 Other current assets                                 208,920      190,673
                                                ------------- ------------
  Total current assets                              4,071,047    3,907,932
Property and equipment, net                         1,092,240      946,217
Acquired product rights, net                          909,878    1,238,511
Other intangible assets, net                        1,245,638    1,440,873
Goodwill                                           10,340,348   10,331,045
Other long-term assets                                 91,719       48,605
                                                ------------- ------------
                                                $  17,750,870 $ 17,913,183
                                                ============= ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Convertible subordinated notes                 $           - $    512,800
 Accounts payable                                     149,131      167,135
 Accrued compensation and benefits                    307,824      277,170
 Current deferred revenue                           2,387,733    1,915,179
 Other accrued expenses                               234,915      185,882
 Income taxes payable                                 238,486      419,401
                                                ------------- ------------
  Total current liabilities                         3,318,089    3,477,567
Convertible senior notes                            2,100,000            -
Long-term deferred revenue                            366,050      248,273
Long-term deferred tax liabilities                    343,848      493,956
Other long-term obligations                            21,370       24,916
Stockholders' equity:
 Common stock                                           8,994       10,409
 Capital in excess of par value                    10,061,144   12,426,690
 Accumulated other comprehensive income               182,933      146,810
 Deferred stock-based compensation                          -      (43,595)
 Retained earnings                                  1,348,442    1,128,157
                                                ------------- ------------
  Total stockholders' equity                       11,601,513   13,668,471
                                                ------------- ------------
                                                $  17,750,870 $ 17,913,183
                                                ============= ============


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


                           Three Months Ended            Year Ended
                                March 31,                 March 31,
                        ------------------------  ------------------------
                            2007         2006         2007         2006
                        -----------  -----------  -----------  -----------
                              (unaudited)               (unaudited)
Net revenues            $ 1,357,217  $ 1,238,560  $ 5,199,366  $ 4,143,392
Cost of revenues:
  Cost of revenues          221,390      194,385      873,493      667,579
  Amortization of
   acquired product
   rights                    84,873       88,769      342,333      314,290
                        -----------  -----------  -----------  -----------
   Cost of revenues         306,263      283,154    1,215,826      981,869
  Gross profit            1,050,954      955,406    3,983,540    3,161,523
Operating expenses:
  Sales and marketing       575,544      444,675    2,007,651    1,499,904
  Research and
   development              218,469      202,520      866,882      682,125
  General and
   administrative            79,266       71,418      316,783      228,563
  Amortization of other
   intangible assets         49,932       50,347      201,502      148,822
  Acquired in-process
   research and
   development                    -        1,100            -      285,100
  Restructuring              50,758        4,426       70,236       24,918
  Integration                   744          587          744       15,926
  Patent settlement               -            -            -        2,200
                        -----------  -----------  -----------  -----------
   Total operating
    expenses                974,713      775,073    3,463,798    2,887,558
Operating income             76,241      180,333      519,742      273,965
  Interest and other
   income, net               36,068       21,508      139,113      106,754
  Interest expense           (6,245)      (3,650)     (27,233)     (17,996)
                        -----------  -----------  -----------  -----------
Income before income
 taxes                      106,064      198,191      631,622      362,723
  Provision for income
   taxes                     45,169       79,378      227,242      205,871
                        -----------  -----------  -----------  -----------
Net income              $    60,895  $   118,813  $   404,380  $   156,852
                        ===========  ===========  ===========  ===========
Net income per share --
 diluted                $      0.07  $      0.11  $      0.41  $      0.15
                        ===========  ===========  ===========  ===========

Shares used to compute
 net income per share -
 diluted                    932,985    1,064,293      983,261    1,025,856
                        ===========  ===========  ===========  ===========



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


                           Three Months Ended            Year Ended
                                March 31,                 March 31,
                        ------------------------  ------------------------
                            2007         2006         2007         2006
                        -----------  -----------  -----------  -----------

NET REVENUES:
GAAP net revenues       $ 1,357,217  $ 1,238,560  $ 5,199,366  $ 4,143,392
   Fair value
    adjustment to
    Veritas deferred
     revenue        (A)       7,565       61,307       53,300      301,788
   Veritas net
    revenue         (B)                                            559,258
                        -----------  -----------  -----------  -----------
Non-GAAP net
 revenues               $ 1,364,782  $ 1,299,867  $ 5,252,666  $ 5,004,438
                        ===========  ===========  ===========  ===========

NET INCOME:
GAAP net income:        $    60,895  $   118,813  $   404,380  $   156,852
   Fair value
    adjustment to
    Veritas deferred
     revenue        (A)       7,565       61,307       53,300      301,788
   Amortization of
    acquired product
    rights          ©      84,873       88,769      342,333      386,441
   Executive
    incentive
    bonuses         (D)           -        5,241        3,995       10,472
   Stock-based
    compensation    (E)      35,093        9,459      153,840       43,596
   Restructuring    (F)      50,758        4,426       70,236       24,918
   Integration      (G)         744          587          744       27,603
   Amortization of
    other intangible
    assets          (H)      49,932       50,347      201,502      195,586
   Patent
    settlement      (I)           -            -            -        2,200
   Gain on sale of
    strategic
    investments     (J)           -            -            -         (732)
   Veritas
    SEC legal
    settlement      (K)           -            -            -       30,000
   Acquired
    in-process
    research and
    development     (L)           -        1,100            -      285,100
   Gain on sale of
    assets          (M)      (3,223)           -      (19,991)           -
   Income tax
    effect on
    above items     (N)     (59,869)     (61,269)    (217,862)    (305,789)
   Veritas net
    loss            (O)           -            -            -      (13,492)
                        -----------  -----------  -----------  -----------
Non-GAAP net
 income                 $   226,768  $   278,780  $   992,477  $ 1,144,543
                        ===========  ===========  ===========  ===========

NET INCOME
 PER SHARE - DILUTED:
GAAP net
 income per
 share                  $      0.07  $      0.11  $      0.41  $      0.15
   Stock-based
    compensation
    adjustment
    per share    (E, N)        0.03         0.01         0.12         0.03
   Other
    non-GAAP
    adjustments
    per share (A-D,F-O)        0.14         0.14         0.48         0.82
                        -----------  -----------  -----------  -----------
Non-GAAP net
 income per share       $      0.24  $      0.26  $      1.01  $      1.00
                        ===========  ===========  ===========  ===========

SHARES USED
 TO COMPUTE NET INCOME
 PER SHARE - DILUTED:
GAAP Shares
 used to compute net
 income per share           932,985    1,064,293      983,261    1,025,856
  Converted
   incremental
   Veritas shares*                -            -            -      121,663
                        -----------  -----------  -----------  -----------
 Non-GAAP
  Shares used
  to compute
  net income
  per share                 932,985    1,064,293      983,261    1,147,519
                        ===========  ===========  ===========  ===========

* Converted incremental Veritas shares equals Veritas historical shares
multiplied by the exchange ratio of 1.1242.

The non-GAAP financial measures included in the table above are non-GAAP
net revenue, 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 other
intangible assets, and certain other items. We believe that 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.

(A) Fair value adjustment to Veritas deferred revenue.  We include revenue
associated with Veritas 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.

(B) Veritas' net revenue. This amount represents Veritas' net revenue for
the three months ended March 31, 2005. We include Veritas' net revenue
because we believe it is useful in comparing the ongoing operating results
of the combined company with pre-merger results of the two companies.

© 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 operation of our business.

(D)  Executive incentive bonuses.  Consists of bonuses related to the
Veritas acquisition 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 operation of our business. For the three months and
year ended March 31, 2007 and 2006, executive incentive bonuses were
allocated as follows:

                                 Three months ended        Year ended
                                      March 31,             March 31,
                                --------------------- ---------------------
                                  2007       2006       2007       2006
                                ---------- ---------- ---------- ----------
Sales and marketing             $        - $      298 $    1,595 $    1,866
Research and development                 -      1,466      1,800      2,832
General and administrative               -      3,477        600      5,774
                                ---------- ---------- ---------- ----------
   Total executive incentive
    bonuses                     $        - $    5,241 $    3,995 $   10,472
                                ========== ========== ========== ==========

(E) Stock-based compensation.  Consists of expenses for employee stock
options, restricted stock units, and employee stock purchase plan
determined in accordance with APB 25 and SFAS 123(R) pre and post adoption
of SFAS 123(R) on April 1, 2006, respectively. 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 year ended
ended March 31, 2007 and 2006, stock-based compensation was allocated as
follows:



                               Three months      Year
                                  ended          ended
                                 March 31,      March 31,
                               -------------- --------------
                                   2007           2007
                               -------------- --------------
                                      (in thousands)

Cost of revenues               $        3,454 $       16,437
Sales and marketing                    12,084         55,855
Research and development               12,325         57,132
General and administrative              7,230         24,416
                               -------------- --------------
   Total stock-based
    compensation               $       35,093 $      153,840
                               ============== ==============


                          Three months ended             Year ended
                               March 31,                  March 31,
                                 2006                       2006
                      -------- -------- -------- -------- -------- --------
                      Symantec Veritas   Total   Symantec Veritas   Total
                      -------- -------- -------- -------- -------- --------
                            (in thousands)             (In thousands)

Cost of revenues                        $      -          $    901 $    901
Sales and marketing      3,962        -    3,962   13,314    1,482   14,796
Research and
 development             3,971        -    3,971   17,497    2,062   19,559
General and
 administrative          1,526        -    1,526    7,151    1,189    8,340
                      -------- -------- -------- -------- -------- --------
   Total stock-based
    compensation      $  9,459 $      - $  9,459 $ 37,962 $  5,634 $ 43,596
                      ======== ======== ======== ======== ======== ========

(F) 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
operation of our business.

(G) Integration.  Consists of expenses incurred for consulting services and
other professional fees associated with  integration activities of
acquisitions.  We believe they are not directly related to the operation of
our business.  Operating expenses for the three months and year ended March
31, 2007 included $744K of integration expenses in Sales and Marketing. For
the three months and year ended March 31, 2006, integration expenses were
allocated as follows:


                          Three months ended             Year ended
                              March 31,                   March 31,
                                2006                        2006
                      -------- -------- -------- -------- -------- --------
                      Symantec Veritas   Total   Symantec Veritas   Total
                      -------- -------- -------- -------- -------- --------
                            (in thousands)             (in thousands)

Cost of revenues      $      - $      - $      - $      - $  1,057 $  1,057
Sales and marketing          -        -        -    2,340    3,094    5,434
Research and
 development                 -        -        -    1,158    2,700    3,858
General and
 administrative            587        -      587   12,428    4,826   17,254
                      -------- -------- -------- -------- -------- --------
   Total integration
    expenses          $    587 $      - $    587 $ 15,926 $ 11,677 $ 27,603
                      ======== ======== ======== ======== ======== ========

(H) 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 operation of our business.

(I) Patent settlement.  On May 12, 2005, we resolved the Altiris patent
litigation matter with a cross-licensing agreement that resolved all legal
claims between the companies.  We exclude the amount of this settlement
that was attributed to benefits in and prior to the period in which the
settlement was reached because it arose from a specific litigation matter
and we believe it is not directly related to the operation of our business.

(J) Gain on sale of strategic investments.  We have equity investments in
privately held companies for business and strategic purposes.  We exclude
the gain on sale of strategic investments 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.

(K) Veritas SEC legal settlement. Prior to our acquisition of Veritas,
Veritas accrued a $30 million penalty based on settlement discussions with
the SEC.  We include this settlement because we include the Veritas net
loss, per note O below, and we do not believe this settlement was directly
related to the operation of Veritas' business. This settlement was paid in
February 2007.

(L) Acquired in-process research and development. The amounts recorded as
acquired in-process research and development 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.

(M) Gain on sale of assets. We exclude the gain on sale of Milpitas and
Maidenhead buildings 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.

(N) 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.

(O) Veritas net loss.  This amount represents Veritas net loss for the
three months ended March 31, 2005.   We include the Veritas net loss
because we believe it is useful in comparing the ongoing operating results
of the combined company with pre-merger results of the two companies.



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


                                      Three Months Ended March 31, 2007
                                  -----------------------------------------
                                      GAAP       Non-GAAP
                                    Symantec   Adjustments       Non-GAAP
                                  -----------------------------------------


Net Revenues                      $  1,357,217 $     7,565   A $  1,364,782

Revenue By Segment:
Security and Data Management      $    516,649 $     2,964   A $    519,613
Data Center Management            $    362,917 $     4,609   A $    367,526
Services                          $     69,358 $         -   A $     69,358
Consumer                          $    408,218 $         1   A $    408,219
Other                             $         75 $        (9)  A $         66

Revenue by Geography:
Americas (*)                      $    729,747 $     4,711   A $    734,458
EMEA                              $    442,395 $     2,339   A $    444,734
Asia Pacific/Japan                $    185,075 $       515   A $    185,590

Total U.S. Revenue                $    654,747 $     4,401   A $    659,148
Total International Revenue       $    702,470 $     3,164   A $    705,634


                                      Three Months Ended March 31, 2006
                                  -----------------------------------------
                                      GAAP       Non-GAAP
                                    Symantec   Adjustments       Non-GAAP
                                  -----------------------------------------

Net Revenues                      $  1,238,560 $    61,307   A $ 1,299,867

Revenue By Segment:
Security and Data Management      $    493,459 $    18,423   A $   511,882
Data Center Management            $    328,277 $    39,139   A $   367,416
Services                          $     49,241 $     3,751   A $    52,992
Consumer                          $    367,579 $         -   A $   367,579
Other                             $          4 $        (6)  A $        (2)

Revenue by Geography:
Americas (*)                      $    673,833 $    40,648   A $   714,481
EMEA                              $    399,523 $    15,315   A $   414,838
Asia Pacific/Japan                $    165,204 $     5,344   A $   170,548

Total U.S. Revenue                $    611,362 $    38,465   A $   649,827
Total International Revenue       $    627,198 $    22,842   A $   650,040

   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 Veritas deferred revenue that was excluded as a result
   of purchase accounting adjustments to fair value is reflective of
   ongoing operating results.

*  The Americas revenue includes the U.S., Latin America, and Canada.

Footnote:

A  To include Veritas' deferred revenue that was excluded as a result of
   adjustments to fair value.


                           SYMANTEC CORPORATION
                  Reconciliation of GAAP deferred revenue
                       to non-GAAP deferred revenue
                                (Unaudited)


                                                    March 31,   March 31,
                                                       2007        2006
                                                    ----------- -----------
Deferred revenue reconciliation (in thousands)
GAAP deferred revenue                               $ 2,753,783 $ 2,163,452

   Add back:
   Fair value adjustment to Veritas deferred
    revenue (1)                                          17,958      57,529
                                                    ----------- -----------
Non-GAAP deferred revenue (2)                       $ 2,771,741 $ 2,220,981
                                                    ===========

   Add back:
   SAB 108 adjustment                                               100,084
                                                                -----------
Non-GAAP deferred revenue adjusted for
 SAB 108 (2)(3)                                                 $ 2,321,065
                                                                ===========


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

(2)  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 reasons
associated with the adjusting item as described.

(3) The GAAP SAB 108 adjustment was applied on April 1, 2006.  We believe
that providing a non-GAAP deferred revenue balance as of March 31, 2006
that is adjusted for SAB 108 allows comparison of our deferred revenue
balance on a consistent basis.



                           SYMANTEC CORPORATION
Guidance - Reconciliation of projected GAAP revenue and earnings per share
                to non-GAAP revenue and earnings per share
                                (Unaudited)



                                            Q1 FY'08        Total FY'08
                                        ----------------- -----------------
Revenue reconciliation (in billions)
GAAP revenue range                      $ 1.275 - $ 1.305 $   5.59 - $ 5.69

   Add back:
   Fair value adjustment to Veritas
    deferred revenue (1)                            0.006             0.016
   Fair value adjustment to Altiris
    deferred revenue (2)                            0.014             0.044
                                        ----------------- -----------------

Non-GAAP revenue range*                 $ 1.295 - $ 1.325 $   5.65 - $ 5.75
                                        ================= =================



Earnings per share reconciliation
GAAP earnings per share range           $   0.00 - $ 0.02 $   0.45 - $ 0.50

   Add back:
   Stock-based compensation, net of
    tax (3)                                          0.03              0.14
   Fair value adjustment to Veritas and
    Altiris deferred revenue,
    amortization of acquired product
    rights and other intangible
    assets, and restructuring  (1,2,4,5)             0.15              0.51
                                        ----------------- -----------------
Non-GAAP earnings per share range*      $   0.18 - $ 0.20 $   1.10 - $ 1.15
                                        ================= =================

*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 deferred revenue.  We include revenue
associated with Veritas 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) Fair value adjustment to Altiris deferred revenue.  We include revenue
associated with 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.

(3) Stock-based compensation, net of tax.  Consists of expenses for
employee stock options, restricted stock units, and employee stock purchase
plan determined in accordance 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.

(4) 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.

(5) 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)



                                                             June 30, 2007
                                                            ---------------
Deferred revenue reconciliation (in billions)
GAAP deferred revenue                                       $ 2.71 - $ 2.75

   Add back:
   Fair value adjustment to Veritas deferred revenue (*)    $          0.01
   Fair value adjustment to Altiris deferred revenue (*)    $          0.03

                                                            ---------------
Non-GAAP deferred revenue (**)                              $ 2.75 - $ 2.79
                                                            ===============


(*) 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 it is reflective of ongoing operating results.

(**) 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 reasons
associated with the adjusting item as described above.

Contact Information