SOURCE: Symantec

Symantec

May 11, 2011 16:05 ET

Symantec Reports Fourth Quarter Fiscal 2011 Results

MOUNTAIN VIEW, CA--(Marketwire - May 11, 2011) - Symantec Corp. (NASDAQ: SYMC)

Fourth Quarter

  • GAAP Revenue of $1.67 billion
  • Non-GAAP Operating Margin of 24.1 percent
  • Non-GAAP Earnings Per Share of $0.38
  • GAAP Deferred Revenue of $3.82 billion
  • Cash Flow from Operations of $689 million

Fiscal Year 2011

  • GAAP Revenue of $6.19 billion
  • Non-GAAP Operating Margin of 24.8 percent
  • Non-GAAP Earnings Per Share of $1.42
  • Cash Flow from Operations of $1.79 billion

Symantec Corp. (NASDAQ: SYMC) today reported the results of its fourth quarter and the fiscal year 2011, ended April 1, 2011. GAAP revenue for the fiscal fourth quarter was $1.67 billion, up 9 percent year-over-year and up 8 percent after adjusting for currency. For the fiscal year, GAAP revenue was $6.19 billion, up 3 percent year-over-year and up 4 percent after adjusting for currency.

"We closed our fiscal year surpassing expectations across each of our key financial metrics, driven by market share gains and growth in backup, software-as-a-service, data loss prevention and consumer. In addition, our recent acquisitions performed above expectations for the third consecutive quarter," said Enrique Salem, president and chief executive officer, Symantec. "Our rigorous approach to running the business positions us well for fiscal year 2012, during which we will execute on our vision by energizing our core businesses and capitalizing on opportunities in mobile, cloud and virtualization."

"We achieved record quarterly revenue and deferred revenue, as a result of strong bookings performance across all three regions," said James Beer, executive vice president and chief financial officer, Symantec. "We continued to generate substantial cash flow from operations driven by the success of our sales efforts and our continuing focus on cost control."

GAAP Results: GAAP operating margin for the fourth quarter of fiscal year 2011 was 14.3 percent compared with 16.1 percent for the same quarter last year. GAAP net income for the fiscal fourth quarter was $168 million compared with $184 million for the year-ago period. GAAP diluted earnings per share were $0.22 compared with $0.23 for the year-ago quarter.

For the fiscal year 2011, GAAP operating margin was 14.2 percent. GAAP net income for the fiscal year 2011 was $597 million. GAAP diluted earnings per share for the year were $0.76.

GAAP deferred revenue as of April 1, 2011, was $3.82 billion compared with $3.21 billion as of April 2, 2010, up 19 percent year-over-year and up 16 percent after adjusting for currency.

Cash flow from operating activities for the fourth quarter of fiscal year 2011 was $689 million compared with $703 million for the same quarter last year. Symantec ended the quarter and fiscal year with cash, cash equivalents and short-term investments of $2.958 billion. Cash flow from operating activities for fiscal year 2011 was $1.79 billion compared with $1.69 billion for fiscal year 2010, an increase of 6 percent.

Non-GAAP Results: Non-GAAP operating margin for the fourth quarter of fiscal year 2011 was 24.1 percent compared with 28.1 percent for the year-ago period. Non-GAAP net income for the fourth quarter was $297 million compared with $323 million for the year-ago quarter. Non-GAAP diluted earnings per share were $0.38 compared with earnings per share of $0.40 for the year ago quarter.

For the fiscal year 2011, Non-GAAP operating margin was 24.8 percent. Non-GAAP net income for the year was $1.12 billion. Non-GAAP diluted earnings per share were $1.42.

During the fourth quarter of fiscal year 2011, Symantec repurchased approximately 11 million shares for $180 million at an average price of $17.86. During the fiscal year 2011, the company repurchased 57 million shares at an average price of $15.39, equivalent to $870 million. Symantec has $877 million remaining in the current board authorized stock repurchase program.

Business Segment and Geographic Highlights

For the quarter, Symantec's Consumer segment represented 31 percent of total revenue and increased 6 percent year-over-year (5 percent after adjusting for currency). The Security and Compliance segment represented 27 percent of total revenue and increased 24 percent year-over-year (21 percent after adjusting for currency). The Storage and Server Management segment represented 37 percent of total revenue and increased 8 percent year-over-year (7 percent after adjusting for currency). Services represented 5 percent of total revenue and declined 21 percent year-over-year (22 percent after adjusting for currency) as expected due to the company's move to a partner-led consulting model.

International revenue represented 51 percent of total revenue in the fourth quarter of fiscal year 2011 and increased 10 percent year-over-year (8 percent after adjusting for currency). The Europe, Middle East and Africa region represented 29 percent of total revenue for the quarter and increased 4 percent year-over-year on an actual and currency-adjusted basis. The Asia Pacific/Japan revenue for the quarter represented 16 percent of total revenue and increased 22 percent year-over-year (12 percent after adjusting for currency). The Americas, including the United States, Latin America and Canada, represented 55 percent of total revenue and increased 9 percent year-over-year on an actual and currency-adjusted basis.

Acquisition Highlights

Recent acquisitions continue to perform better than expected. For the quarter, the VeriSign security business generated revenue of $61 million and the PGP and GuardianEdge acquisitions generated revenue of $20 million. The combined earnings per share dilution of these acquisitions was a penny and a half, which was half a penny better than expected.

For the fiscal year 2011, revenue from acquisitions was $186 million, exceeding expectations. The combined earnings per share dilution of these acquisitions was 8.5 cents, which was 2.5 cents better than expected.

First Quarter Fiscal Year 2012 Guidance

Guidance assumes an exchange rate of $1.42 per Euro for the June 2011 quarter versus the actual weighted average and end of period rate of $1.26 per Euro for the June 2010 quarter.

For the first quarter of fiscal year 2012, ending July 1, 2011, revenue is estimated between $1.570 billion and $1.590 billion, up 10 to 11 percent year-over-year as reported.

GAAP diluted earnings per share are estimated between $0.19 and $0.20. Non-GAAP diluted earnings per share are estimated between $0.36 and $0.37.

Deferred revenue is expected to be in the range of $3.60 billion and $3.63 billion, up 20 to 21 percent year-over-year as reported.

Conference Call

Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss the results from the fiscal fourth quarter and fiscal year 2011, ended April 1, 2011, and to review guidance. Interested parties may access the conference call on the Internet at http://www.symantec.com/invest. 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 providing security, storage and systems management solutions to help consumers and organizations secure and manage their information-driven world. Our software and services protect against more risks at more points, more completely and efficiently, enabling confidence wherever information is used or stored. 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 projections of future revenue, earnings per share and deferred revenue, as well as projections of amortization of acquisition-related intangibles and stock-based compensation and restructuring charges. 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: general economic conditions; 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. We assume no obligation, and do not intend, to update these forward-looking statements as a result of future events or developments. Additional information concerning these and other risks factors is contained in the Risk Factors sections of our Form 10-K for the year ended April 2, 2010.

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), impairment charges 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
                              (In millions)


                                                   April 1,     April 2,
                                                     2011       2010 (1)
                                                 (Unaudited)
                                                 ------------  ------------
ASSETS

Current assets:
  Cash and cash equivalents                      $      2,950  $      3,029
  Short-term investments                                    8            15
  Trade accounts receivable, net                        1,013           856
  Inventories                                              30            25
  Deferred income taxes                                   223           176
  Other current assets                                    262           250
                                                 ------------  ------------
    Total current assets                                4,486         4,351
                                                 ------------  ------------

Property and equipment, net                             1,050           949
Intangible assets, net                                  1,511         1,179
Goodwill                                                5,494         4,605
Investment in joint venture                                27            58
Other long-term assets                                    151            90
                                                 ------------  ------------
        Total assets                             $     12,719  $     11,232
                                                 ============  ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                               $        260  $        214
  Accrued compensation and benefits                       443           349
  Deferred revenue                                      3,321         2,835
  Current portion of long-term debt                       596             -
  Income taxes payable                                     24            35
  Other current liabilities                               249           338
                                                 ------------  ------------
    Total current liabilities                           4,893         3,771
                                                 ------------  ------------

Long-term debt                                          1,987         1,871
Long-term deferred revenue                                498           371
Long-term deferred tax liabilities                        296           195
Long-term income taxes payable                            361           426
Other long-term obligations                                79            50
                                                 ------------  ------------
    Total liabilities                                   8,114         6,684
                                                 ------------  ------------

                                                 ------------  ------------
    Total Symantec Corporation stockholders'
     equity                                             4,528         4,548
                                                 ------------  ------------

Noncontrolling interest in subsidiary                      77             -
                                                 ------------  ------------
    Total stockholders' equity                          4,605         4,548
                                                 ------------  ------------
        Total liabilities and stockholders'
         equity                                  $     12,719  $     11,232
                                                 ============  ============

(1) Derived from audited financial statements.





                           SYMANTEC CORPORATION
                      Consolidated Statements of Income
              (In millions, except per share data, unaudited)


                                                         Year-Over-Year
                                    Three Months Ended     Growth Rate
                                    ------------------  ------------------
                                    April 1,  April 2,           Constant
                                      2011      2010    Actual  Currency(1)
                                    --------  --------  ------  ----------

Net revenue:
  Content, subscription, and
   maintenance                      $  1,393  $  1,279       9%          7%
  License                                280       252      11%         10%
                                    --------  --------  ------  ----------
    Total net revenue                  1,673     1,531       9%          8%
                                    --------  --------  ------  ----------

Cost of revenue:
  Content, subscription, and
   maintenance                           236       225
  License                                 11         6
  Amortization of acquired product
   rights                                 23        45
                                    --------  --------  ------  ----------
    Total cost of revenue                270       276      -2%         -3%
                                    --------  --------  ------  ----------
Gross profit                           1,403     1,255      12%         10%
                                    --------  --------  ------  ----------

Operating expenses:
  Sales and marketing                    733       597
  Research and development               226       216
  General and administrative             101        87
  Amortization of other purchased
   intangible assets                      72        61
  Restructuring and transition             4        30
  Impairment of intangible assets         27         -
  Loss and impairment of assets
   held for sale                           1        17
                                    --------  --------  ------  ----------
    Total operating expenses           1,164     1,008      15%         14%
                                    --------  --------  ------  ----------
Operating income                         239       247      -3%         -4%
                                    --------  --------  ------  ----------

  Interest income                          3         2
  Interest expense                       (37)      (33)
  Other income, net                        1         3
                                    --------  --------  ------  ----------
Income before income taxes and loss
 from joint venture                      206       219      -6%        N/A
                                    --------  --------  ------  ----------

  Provision for income taxes              30        23
  Loss from joint venture                 10        12
                                    --------  --------  ------  ----------
Net income                               166       184     -10%        N/A
  Less: Loss attributable to
   noncontrolling interest                (2)        -
                                    --------  --------  ------  ----------
Net income attributable to Symantec
 Corporation stockholders           $    168  $    184      -9%        N/A
                                    ========  ========  ======  ==========

Net income per share attributable
 to Symantec Corporation
 stockholders -- basic              $   0.22  $   0.23
Net income per share attributable
 to Symantec Corporation
 stockholders -- diluted            $   0.22  $   0.23
Weighted-average shares outstanding
 attributable to Symantec
 Corporation stockholders -- basic       763       802
Weighted-average shares outstanding
 attributable to Symantec
 Corporation stockholders --
 diluted                                 773       812
                                    --------  --------  ------  ----------

(1) Management refers to growth rates adjusting for currency so that the
    business results can be viewed without the impact of fluctuations in
    foreign currency exchange rates. We compare the percentage change in
    the results from one period to another period in order to provide a
    framework for assessing how our underlying businesses performed
    excluding the effect of foreign currency rate fluctuations. To present
    this information, current and comparative prior period results for
    entities reporting in currencies other than United States dollars are
    converted into United States dollars at the actual exchange rates in
    effect during the respective prior periods.





                           SYMANTEC CORPORATION
                      Consolidated Statements of Income
              (In millions, except per share data, unaudited)


                                                         Year-Over-Year
                                        Year Ended         Growth Rate
                                    ------------------  ------------------
                                    April 1,  April 2,           Constant
                                      2011      2010    Actual  Currency(1)
                                    --------  --------  ------  ----------

Net revenue:
  Content, subscription, and
   maintenance                      $  5,266  $  5,034       5%          5%
  License                                924       951      -3%         -2%
                                    --------  --------  ------  ----------
    Total net revenue                  6,190     5,985       3%          4%
                                    --------  --------  ------  ----------

Cost of revenue:
  Content, subscription, and
   maintenance                           903       849
  License                                 27        22
  Amortization of acquired product
   rights                                115       234
                                    --------  --------  ------  ----------
    Total cost of revenue              1,045     1,105      -5%         -5%
                                    --------  --------  ------  ----------
Gross profit                           5,145     4,880       5%          6%
                                    --------  --------  ------  ----------

Operating expenses:
  Sales and marketing                  2,622     2,367
  Research and development               862       857
  General and administrative             390       352
  Amortization of other purchased
   intangible assets                     270       247
  Restructuring and transition            92        94
  Impairment of intangible assets         27         -
  Loss and impairment of assets
   held for sale                           2        30
                                    --------  --------  ------  ----------
    Total operating expenses           4,265     3,947       8%          8%
                                    --------  --------  ------  ----------
Operating income                         880       933      -6%          0%
                                    --------  --------  ------  ----------

  Interest income                         10         6
  Interest expense                      (143)     (129)
  Other (expense) income, net             (2)       55
  Loss on early extinguishment of
   debt                                  (16)        -
                                    --------  --------  ------  ----------
Income before income taxes and loss
 from joint venture                      729       865     -16%        N/A
                                    --------  --------  ------  ----------

  Provision for income taxes             105       112
  Loss from joint venture                 31        39
                                    --------  --------  ------  ----------
Net income                               593       714     -17%        N/A
  Less: Loss attributable to
   noncontrolling interest                (4)        -
                                    --------  --------  ------  ----------
Net income attributable to Symantec
 Corporation stockholders           $    597  $    714     -16%        N/A
                                    ========  ========  ======  ==========

Net income per share attributable
 to Symantec Corporation
 stockholders -- basic              $   0.77  $   0.88
Net income per share attributable
 to Symantec Corporation
 stockholders -- diluted            $   0.76  $   0.87
Weighted-average shares outstanding
 attributable to Symantec
 Corporation stockholders -- basic       778       810
Weighted-average shares outstanding
 attributable to Symantec
 Corporation stockholders --
 diluted                                 786       819
                                    --------  --------  ------  ----------

(1) Management refers to growth rates adjusting for currency so that the
    business results can be viewed without the impact of fluctuations in
    foreign currency exchange rates. We compare the percentage change in
    the results from one period to another period in order to provide a
    framework for assessing how our underlying businesses performed
    excluding the effect of foreign currency rate fluctuations. To present
    this information, current and comparative prior period results for
    entities reporting in currencies other than United States dollars are
    converted into United States dollars at the actual exchange rates in
    effect during the respective prior periods.





                           SYMANTEC CORPORATION
              Condensed Consolidated Statements of Cash Flows
                         (In millions, unaudited)


                                                            Year Ended
                                                        ------------------
                                                        April 1,  April 2,
                                                          2011      2010
                                                        --------  --------
OPERATING ACTIVITIES:
Net income                                              $    593  $    714
Adjustments to reconcile net income to net cash
 provided by operating activities:
   Depreciation and amortization                             647       733
   Amortization of discount on debt                           96       104
   Stock-based compensation expense                          145       155
   Loss on early extinguishment of debt                       16         -
   Impairment of intangible assets                            27         -
   Loss and impairment of assets held for sale                 2        30
   Deferred income taxes                                       5       (41)
   Excess income tax benefit from the exercise
    of stock options                                          (7)      (13)
   Loss from joint venture                                    31        39
   Net loss (gain) on legal liquidation of
    foreign entities                                          21       (47)
   Other                                                     (13)        -
   Net change in assets and liabilities, excluding
    effects of acquisitions:
      Trade accounts receivable, net                         (88)      (14)
      Inventories                                             (4)        3
      Accounts payable                                         2         4
      Accrued compensation and benefits                       72       (34)
      Deferred revenue                                       442       114
      Income taxes payable                                  (128)      (95)
      Other assets                                             6         1
      Other liabilities                                      (71)       40
                                                        --------  --------
         Net cash provided by operating activities         1,794     1,693
                                                        --------  --------

INVESTING ACTIVITIES:
   Purchase of property and equipment                       (268)     (248)
   Proceeds from sale of property and equipment               30        45
   Cash payments for acquisitions, net of cash acquired   (1,537)      (31)
   Purchase of equity investments                             (7)      (21)
   Purchases of available-for-sale securities                  -        (2)
   Proceeds from sales of available-for-sale securities       20       192
   Other                                                       2         -
                                                        --------  --------
         Net cash used in investing activities            (1,760)      (65)
                                                        --------  --------

FINANCING ACTIVITIES:
   Net proceeds from sales of common stock under
    employee stock benefit plans                             122       124
   Excess income tax benefit from the exercise
    of stock options                                           7        13
   Tax payments related to restricted stock issuance         (28)      (20)
   Proceeds from debt issuance, net of discount            1,097         -
   Repurchase of long-term debt                             (510)        -
   Proceeds from sale of bond hedge                           13         -
   Debt issuance costs                                       (10)        -
   Repurchase of common stock                               (872)     (553)
   Repayment of other long-term obligations                   (3)       (5)
                                                        --------  --------
         Net cash used in financing activities              (184)     (441)
                                                        --------  --------

Effect of exchange rate fluctuations on cash
 and cash equivalents                                         71        49
                                                        --------  --------
Change in cash and cash equivalents                          (79)    1,236
Beginning cash and cash equivalents                        3,029     1,793
                                                        --------  --------
Ending cash and cash equivalents                        $  2,950  $  3,029
                                                        ========  ========





                           SYMANTEC CORPORATION
    Reconciliation of Selected GAAP Measures to Non-GAAP Measures (1)
              (In millions, except per share data, unaudited)


                                                           Year-Over-Year
                                                             Non-GAAP(2)
                            Three Months Ended               Growth Rate
                ----------------------------------------- -----------------
                    April 1, 2011        April 2, 2010             Constant
                               Non-                 Non-           Currency
                 GAAP   Adj   GAAP(2) GAAP   Adj   GAAP(2) Actual    (3)
                ------ ------ ------ ------ ------ ------ -------- --------

Net revenue:    $1,673    N/A $1,673 $1,531    N/A $1,531    9%       8%
                ------ ------ ------ ------ ------ ------ -------- --------

Gross profit:   $1,403 $   32 $1,435 $1,255 $   47 $1,302    10%      9%
  Stock-based
   compensation             9                    3
  Amortization
   of acquired
   product
   rights                  23                   44
                ------ ------ ------ ------ ------ ------ -------- --------

Gross margin %   83.9%         85.8%  82.0%         85.0%  80 bps   50 bps
                ------ ------ ------ ------ ------ ------ -------- --------

Operating
 expenses:      $1,164 $  133 $1,031 $1,008 $  136 $  872    18%      16%
  Stock-based
   compensation            28                   28
  Amortization
   of other
   intangible
   assets                  72                   61
  Restructuring
   and
   transition               4                   30
  Impairment of
   intangible
   assets                  27                    -
  Loss and
   impairment of
   assets held
   for sale                 1                   17
  Acquisition-
   related
   expense                  1                    -
                ------ ------ ------ ------ ------ ------ -------- --------
Operating
 expenses as a
 % of revenue    69.6%         61.6%  65.8%         57.0%  460 bps  440 bps
                ------ ------ ------ ------ ------ ------ -------- --------
Operating
 income         $  239 $  165 $  404 $  247 $  183 $  430    -6%      -7%
                ------ ------ ------ ------ ------ ------ -------- --------

Operating
 margin %        14.3%         24.1%  16.1%         28.1% -400 bps -390 bps
                ------ ------ ------ ------ ------ ------ -------- --------

Net income:     $  168 $  129 $  297 $  184 $  139 $  323    -8%      N/A
  Gross profit
   adjustment              32                   47
  Operating
   expense
   adjustment             133                  136
  Non-cash
   interest
   expense                 21                   27
  Joint venture:
   Amortization
   of other
   intangible
   assets                   3                    2
  Income tax
   effect on
   above items            (51)                 (71)
  Tax related
   adjustments:
    Release of
     valuation
     allowance             (9)                  (2)
                ------ ------ ------ ------ ------ ------ -------- --------
Diluted net
 income per
 share
 attributable
 to Symantec
 Corporation
 stockholders   $ 0.22 $ 0.16 $ 0.38 $ 0.23 $ 0.17 $ 0.40    -5%      N/A
                ------ ------ ------ ------ ------ ------ -------- --------

Diluted
 weighted-average
 shares
 outstanding
 attributable
 to Symantec
 Corporation
 stockholders      773           773    812           812    -5%      N/A
                ------ ------ ------ ------ ------ ------ -------- --------

(1) This presentation includes non-GAAP measures. Our non-GAAP measures 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 measures prepared in accordance with GAAP.
    For a detailed explanation of these non-GAAP measures, please see
    Symantec's Explanation of Non-GAAP Measures in Appendix A.

(2) Beginning in fiscal 2011, we discontinued reporting revenue on a
    non-GAAP basis. We continue to report non-GAAP gross margin, operating
    margin, net income and earnings per share, however, we now utilize GAAP
    revenue in calculating these non-GAAP financial metrics.

(3) Management refers to growth rates adjusting for currency so that the
    business results can be viewed without the impact of fluctuations in
    foreign currency exchange rates. We compare the percentage change in
    the results from one period to another period in order to provide a
    framework for assessing how our underlying businesses performed
    excluding the effect of foreign currency rate fluctuations. To present
    this information, current and comparative prior period results for
    entities reporting in currencies other than United States dollars are
    converted into United States dollars at the actual exchange rates in
    effect during the respective prior periods.





                           SYMANTEC CORPORATION
                 Revenue and Deferred Revenue Detail (1,2)
                         (In millions, unaudited)


                                                        Three Months Ended
                                                        ------------------
                                                        April 1,  April 2,
                                                          2011      2010
                                                        --------  --------
GAAP Revenue
  Content, subscription, and maintenance                $  1,393  $  1,279
  License                                                    280       252
                                                        --------  --------
    Total revenue                                       $  1,673  $  1,531
                                                        ========  ========
GAAP Revenue Y/Y Growth Rate
  Content, subscription, and maintenance                       9%        7%
  License                                                     11%       -8%
                                                        --------  --------
    Total Y/Y Growth Rate                                      9%        4%
                                                        ========  ========
GAAP Revenue Y/Y Growth Rate in Constant Currency
  Content, subscription, and maintenance                       7%        4%
  License                                                     10%      -11%
                                                        --------  --------
    Total Y/Y Growth Rate in Constant Currency                 8%        2%
                                                        ========  ========

GAAP Revenue by Segment
  Consumer                                              $    514  $    483
  Security and Compliance                                    446       361
  Storage and Server Management                              626       577
  Services                                                    87       110
                                                        ========  ========
GAAP Revenue by Segment: Y/Y Growth Rate
  Consumer                                                     6%       12%
  Security and Compliance                                     24%        4%
  Storage and Server Management                                8%       -2%
  Services                                                   -21%        8%
                                                        ========  ========
GAAP Revenue by Segment: Y/Y Growth Rate in Constant
 Currency
  Consumer                                                     5%        9%
  Security and Compliance                                     21%        1%
  Storage and Server Management                                7%       -4%
  Services                                                   -22%        6%
                                                        ========  ========

GAAP Revenue by Geography
  International                                         $    845  $    765
  US                                                         828       766
    Americas (U.S., Latin America, Canada)                   915       842
    EMEA                                                     480       461
    Asia Pacific & Japan                                     278       228
                                                        ========  ========
GAAP Revenue by Geography: Y/Y Growth Rate
  International                                               10%        4%
  US                                                           8%        5%
    Americas (U.S., Latin America, Canada)                     9%        5%
    EMEA                                                       4%        3%
    Asia Pacific & Japan                                      22%        5%
                                                        ========  ========
GAAP Revenue by Geography: Y/Y Growth Rate in
 Constant Currency
  International                                                8%       -2%
  US                                                           8%        5%
    Americas (U.S., Latin America, Canada)                     9%        5%
    EMEA                                                       4%       -2%
    Asia Pacific & Japan                                      12%       -1%
                                                        ========  ========

GAAP Deferred Revenue                                   $  3,819  $  3,206
                                                        ========  ========
GAAP Deferred Revenue Y/Y Growth Rate                         19%        5%
                                                        ========  ========
GAAP Deferred Revenue Y/Y Growth Rate in Constant
 Currency                                                     16%        4%
                                                        ========  ========

(1) Management refers to growth rates adjusting for currency so that the
    business results can be viewed without the impact of fluctuations in
    foreign currency exchange rates. We compare the percentage change in
    the results from one period to another period in order to provide a
    framework for assessing how our underlying businesses performed. To
    exclude the effects of foreign currency rate fluctuations, current and
    comparative prior period results for entities reporting in currencies
    other than United States dollars are converted into United States
    dollars at the actual exchange rates in effect during the respective
    prior periods (or, in the case of deferred revenue, converted into
    United States dollars at the actual exchange rate in effect at the end
    of the prior period).

(2) Beginning in fiscal 2011, we discontinued reporting revenue and
    deferred revenue on a non-GAAP basis. We continue to report non-GAAP
    gross margin, operating margin, net income and earnings per share,
    however, we now utilize GAAP revenue in calculating these non-GAAP
    financial metrics.





                           SYMANTEC CORPORATION
                  Operating Margin by Segment Detail (1,2)
                                (unaudited)


                                                        Three Months Ended
                                                        ------------------
                                                        April 1,  April 2,
                                                          2011      2010
                                                        --------  --------
GAAP Operating Margin by Segment
  Consumer                                                    47%       44%
  Security and Compliance                                     13%       28%
  Storage and Server Management                               44%       47%
  Services                                                     7%       11%
                                                        ========  ========

(1) Beginning in fiscal 2011, we discontinued reporting revenue and
    deferred revenue on a non-GAAP basis. We continue to report non-GAAP
    gross margin, operating margin, net income and earnings per share,
    however, we now utilize GAAP revenue in calculating these non-GAAP
    financial metrics.

(2) Excluded from this table is our Other segment which is comprised of
    sunset products nearing the end of their life cycle. The Other segment
    also includes general and administrative expenses; amortization of
    acquired product rights, intangible assets, and other assets; goodwill
    impairment charges; charges such as stock-based compensation and
    restructuring; and certain indirect costs that are not charged to the
    other operating segments.





                           SYMANTEC CORPORATION
    Guidance and Reconciliation of GAAP to Non-GAAP Earnings Per Share
              (In billions, except per share data, unaudited)


We include certain non-GAAP measures in the tracking and forecasting of our
earnings and management of our business. For a detailed explanation of
these non-GAAP measures, please see Symantec's Explanation of Non-GAAP
Measures in Appendix A.

                                         Three Months Ending July 1, 2011
                                       ------------------------------------
                                                            Year-Over-Year
                                                              Growth Rate
                                                           ----------------
Revenue guidance                             Range              Actual
                                       -----------------   ----------------

GAAP revenue range                     $ 1.570 - $ 1.590          10% - 11%
                                       -----------------   ---------------- 



                                         Three Months Ending July 1, 2011
                                       ------------------------------------
                                                            Year-Over-Year
                                                              Growth Rate
Earnings per share guidance and                            ----------------
 reconciliation                              Range              Actual
                                       -----------------   ----------------

GAAP diluted earnings per share range    $ 0.19 - $ 0.20          (5)% - 0%
  Add back:
  Stock-based compensation, net of tax            $ 0.04
  Amortization of acquired product
   rights and other intangible assets
   and non-cash interest expense, net
   of tax                                         $ 0.13
                                       -----------------   ----------------
Non-GAAP diluted earnings per share
 range                                   $ 0.36 - $ 0.37            3% - 6%
                                       -----------------   ----------------



                                         Three Months Ending July 1, 2011
                                       ------------------------------------
                                                            Year-Over-Year
                                                              Growth Rate
                                                           ----------------
Deferred revenue guidance                    Range              Actual
                                       -----------------   ----------------

GAAP deferred revenue range              $ 3.60 - $ 3.63          20% - 21%
                                       -----------------   ----------------





                           SYMANTEC CORPORATION
                    Explanation of Non-GAAP Measures
                               Appendix A

The non-GAAP financial measures included in the tables adjust for the following items: business combination accounting entries, stock-based compensation expense, restructuring charges, charges related to the amortization of intangible assets and acquired product rights, impairments of 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.

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 the authoritative guidance on stock-based compensation. 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-based 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.

                                                        Three Months Ended
                                                        April 1,  April 2,
                                                          2011      2010
                                                        --------  --------
        Cost of revenue                                 $      9  $      3
        Sales and marketing                                   15        11
        Research and development                               7        11
        General and administrative                             6         6
                                                        --------  --------
          Total stock-based compensation                $     37  $     31
                                                        ========  ========

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 these amortization charges 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.

Restructuring and transition: We have engaged in various restructuring and transformation activities over the past several years that have resulted in costs associated with severance, benefits, outplacement services and excess facilities. Each restructuring and transformation activity 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 and, we believe that investors benefit from excluding these charges from our operating results to facilitate a more meaningful evaluation of current operating performance and comparisons to past operating performance.

Impairment of intangible assets: During the fourth quarter of fiscal 2011 we recorded an impairment loss of $27 million resulting from lower than expected future cash flows of non-core brand names. This impairment loss was primarily due to an increased focus on using the Symantec and Norton brands rather than non-core brands in go-to-market efforts. We do not believe that these charges are indicative of future operating results. We believe that investors benefit from excluding these charges from our operating results to facilitate a more meaningful evaluation of current operating performance and comparisons to past operating performance.

Loss and impairment of assets held for sale: We have committed to sell certain buildings and land. We have classified these assets as held for sale and adjusted the assets' carrying value when above the fair market value less cost to sell. We believe that it is important to understand these charges and, we believe that investors benefit from excluding these charges from our operating results to facilitate a more meaningful evaluation of current operating performance and comparisons to past operating performance.

Acquisition related expenses: New authoritative guidance on business combinations requires us to record in the statement of income, certain items that at the time of an acquisition would have been recorded to goodwill under the old authoritative guidance. We have excluded the effect of acquisition-related expenses from our non-GAAP operating expenses and net income measures. We incurred expenses in connection with our acquisitions, which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. Acquisition-related expenses consist of professional service expenses. We believe it is useful for investors to understand the effects of these items on our operations. Although acquisition-related expenses generally diminish over time with respect to past acquisitions, we generally will incur these expenses in connection with any future acquisitions.

                           SYMANTEC CORPORATION
                    Explanation of Non-GAAP Measures
                          Appendix A (continued)

Non-cash interest expense: Effective April 4, 2009, we adopted authoritative guidance on convertible debt instruments, which changes the method of accounting for our convertible notes. Under this authoritative guidance, our EPS and net income calculated in accordance with GAAP will be reduced as a result of recognizing incremental non-cash interest expense. We believe it is useful to provide a non-GAAP financial measure that excludes this incremental non-cash interest expense 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.

Joint venture: As noted above, we exclude amortization of other intangible assets related to the joint venture from our non-GAAP net income.

Release of valuation allowance: Due to an acceleration in the use of our Irish net operating losses ("NOLs"), we have released in full the tax valuation allowance that was originally recorded against these NOLs in relation to the impairment of goodwill that we recorded solely to our GAAP results during the three months ended January 2, 2009. To enhance consistency and comparability of results across periods, we exclude the impact of the release of the valuation allowance from our non-GAAP results.

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