SOURCE: Symantec

October 25, 2006 16:05 ET

Symantec Reports Solid Second Quarter Earnings

Results Driven by Performance Across Consumer and Data Center Management Groups; Company Reaffirms Fiscal Year 2007 Guidance

CUPERTINO, CA -- (MARKET WIRE) -- October 25, 2006 -- Symantec Corp. (NASDAQ: SYMC) today reported results for the second quarter of fiscal year 2007, ended Sept. 29, 2006. GAAP revenue for the quarter was $1.262 billion and non-GAAP revenue was $1.275 billion. Non-GAAP revenue grew 7 percent over the comparable period a year ago.

GAAP Results: GAAP net income for the fiscal second quarter was $123 million, compared to a net loss of $251 million for the same quarter last year. Diluted earnings per share was $0.12, compared to a loss of $0.21 per share for the same quarter last year.

Non-GAAP Results: Non-GAAP net income for the fiscal second quarter was $259 million, compared to $273 million for the same quarter last year. Non-GAAP diluted earnings per share was $0.26, compared to diluted earnings per share of $0.23 for the same quarter last year. For a detailed reconciliation of our GAAP to non-GAAP results, please refer to the attached consolidated financial statements.

"Our results for the September quarter met the low end of our expectations," said John W. Thompson, Symantec chairman and chief executive officer. "With the most challenging part of the fiscal year behind us, I believe our business remains healthy and we are poised to achieve our full-year financial targets."

Financial Highlights

For the quarter, Symantec's consumer business represented 31 percent of total revenue and grew 12 percent year-over-year. The enterprise business represented 69 percent of the total revenue and grew 5 percent year-over-year. The enterprise segment includes results from the Data Center Management, Security and Data Management, and Services groups.

International revenues represented 50 percent of total revenue in the second quarter and grew 10 percent year-over-year. The Americas, including the United States, Latin America, and Canada, represented 55 percent of total revenue and increased 5 percent year-over-year. The Europe, Middle East, and Africa region represented 31 percent of total revenue for the quarter and grew 8 percent year-over-year. Asia Pacific/Japan revenue for the quarter represented 14 percent of total revenue and grew 11 percent year-over-year.

GAAP deferred revenue at the end of the September 2006 quarter was $2.228 billion. Non-GAAP deferred revenue at the end of the quarter reached $2.250 billion, growing almost 30 percent compared to the September 2005 quarter.

December Quarter Forecast

For the December 2006 quarter, GAAP revenue is estimated between $1.315 billion and $1.345 billion. GAAP diluted earnings per share for the December quarter is estimated between $0.14 and $0.15.

Non-GAAP revenue for the December quarter is estimated between $1.325 billion and $1.355 billion. Non-GAAP diluted earnings per share is estimated between $0.29 and $0.30.

Fiscal Year 2007 Forecast

Symantec is reaffirming its previously announced guidance for the fiscal year ending March 2007. GAAP revenue is estimated in the range of $5.1 billion to $5.3 billion. GAAP diluted earnings per share for the fiscal year ending March 2007 is estimated between $0.46 and $0.56.

Non-GAAP revenue is estimated in the range of $5.2 billion to $5.4 billion. Non-GAAP diluted earnings per share is estimated between $1.06 and $1.16.

Quarterly Highlights

--  Symantec signed 280 contracts worldwide worth more than $300,000 each,
    including 66 worth more than $1 million each, during the quarter.  Of those
    280 contracts, 76 percent were multiple product deals.
    
--  Symantec signed new or extended agreements with the following
    customers: Kelly Services, Inc., a Fortune 500 provider of staffing
    solutions; Lee Enterprises, Inc., the country's fourth largest newspaper
    group with 56 dailies and online sites in 23 states; Wintrust Financial
    Corp., a financial services holding company with assets in excess of $8
    billion; Marathon Petroleum Co. LLC, the nation's fifth largest petroleum
    refiner; Texas Children's Hospital, an internationally recognized full-care
    pediatric hospital nationally ranked in the top five among children’s
    hospitals;  DeVry University, which provides rigorous, career-oriented
    undergraduate and graduate degree programs;  The Florida Turnpike
    Authority, which manages a user-financed, limited-access toll road that
    runs 312 miles, through 11 counties in Florida; Wayne St. University, the
    nation's 28th-largest enrollment university headquartered in Detroit,
    Michigan; SEI Investments Co., a leading global provider of outsourced
    asset management, investment processing and investment operations
    solutions; Liaoning Mobile, Zhejiang Mobile and Guangdong Mobile,
    subsidiaries of China Mobile Ltd., the leading mobile services provider in
    China; PT Excelcomindo Pratama, Tbk, the preferred information and
    communication technologies provider in Indonesia; and Freehills, which
    provides commercial legal advice across Asia Pacific.
    
Conference Call

Symantec has scheduled a conference call for 5 p.m. ET/2 p.m. PT today to discuss the fiscal second quarter, ended Sept. 29, 2006, and to review guidance for the fiscal year 2007. 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 the world leader in providing solutions to help individuals and enterprises assure the security, availability, and integrity of their information. 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 and earnings per share for the third quarter and year of fiscal 2007, and projections of deferred revenue, 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 June 30, 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 additional combined non-GAAP and other financial information, on the investor relations page of our Web site at www.symantec.com/invest/center.html.


                           SYMANTEC CORPORATION
                        Consolidated Balance Sheets
                  (In thousands, except per share data)


                                              September 30,    March 31,
                                                  2006           2006
                                              -------------  -------------
                                               (unaudited)
ASSETS
Current assets:
 Cash and short-term investments              $   2,954,223  $   2,865,802
 Trade accounts receivable, net                     561,831        670,937
 Inventories                                         40,451         48,687
 Current deferred income taxes                      125,763        131,833
 Other current assets                               190,077        190,673
                                              -------------  -------------
  Total current assets                            3,872,345      3,907,932
Property and equipment, net                         991,818        946,217
Acquired product rights, net                      1,067,766      1,238,511
Other intangible assets, net                      1,339,779      1,440,873
Goodwill                                         10,335,004     10,331,045
Other long-term assets                               81,331         48,605
                                              -------------  -------------
                                              $  17,688,043  $  17,913,183
                                              =============  =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Convertible subordinated notes               $           -  $     512,800
 Accounts payable                                   166,844        167,135
 Accrued compensation and benefits                  266,240        277,170
 Current deferred revenue                         1,906,148      1,915,179
 Other accrued expenses                             172,947        185,882
 Income taxes payable                               262,523        419,401
                                              -------------  -------------
  Total current liabilities                       2,774,702      3,477,567
Convertible senior notes                          2,100,000              -
Long-term deferred revenue                          321,870        248,273
Long-term deferred tax liabilities                  248,700        493,956
Other long-term obligations                          21,471         24,916
Stockholders' equity:
 Common stock                                         9,413         10,409
 Capital in excess of par value                  10,759,857     12,426,690
 Accumulated other comprehensive income             176,981        146,810
 Deferred stock-based compensation                        -        (43,595)
 Retained earnings                                1,275,049      1,128,157
                                              -------------  -------------
  Total stockholders' equity                     12,221,300     13,668,471
                                              -------------  -------------
                                              $  17,688,043  $  17,913,183
                                              =============  =============



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


                           Three Months Ended         Six Months Ended
                              September 30,             September 30,
                        ------------------------  ------------------------
                            2006         2005         2006         2005
                        -----------  -----------  -----------  -----------
                              (unaudited)               (unaudited)

Net revenues            $ 1,262,073  $ 1,055,864  $ 2,521,159  $ 1,755,806
Cost of revenues:
  Cost of revenues          218,897      183,970      432,059      289,752
  Amortization of
   acquired product
   rights                    85,338      129,472      172,949      140,485
                        -----------  -----------  -----------  -----------
   Cost of revenues         304,235      313,442      605,008      430,237
  Gross profit              957,838      742,422    1,916,151    1,325,569
Operating expenses:
  Sales and marketing       462,551      406,131      926,988      618,046
  Research and
   development              221,906      194,076      438,168      286,414
  General and
   administrative            80,366       61,548      159,847       92,810
  Amortization of other
   intangible assets         50,479       48,309      101,093       50,048
  Acquired in-process
   research and
   development                    -      284,000            -      284,000
  Restructuring               6,220        1,452       19,478        4,926
  Integration                     -        5,253            -       13,154
  Patent settlement               -            -            -        2,200
                        -----------  -----------  -----------  -----------
   Total operating
    expenses                821,522    1,000,769    1,645,574    1,351,598
Operating income (loss)     136,316     (258,347)     270,577      (26,029)
  Interest and other
   income, net               50,566       39,963       78,200       62,721
  Interest expense           (8,053)      (7,503)     (14,731)      (7,503)
                        -----------  -----------  -----------  -----------
Income (loss) before
 income taxes               178,829     (225,887)     334,046       29,189
  Provision for income
   taxes                     55,395       25,441      115,821       81,884
                        -----------  -----------  -----------  -----------
Net income (loss)       $   123,434  $  (251,328) $   218,225  $   (52,695)
                        ===========  ===========  ===========  ===========
Net income (loss) per
 share — diluted        $      0.12  $     (0.21) $      0.21  $     (0.06)
                        ===========  ===========  ===========  ===========
Shares used to compute
 net income (loss) per
 share — diluted            987,916    1,172,130    1,018,427      941,727
                        ===========  ===========  ===========  ===========



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


                           Three Months Ended         Six Months Ended
                              September 30,             September 30,
                        ------------------------  ------------------------
                            2006         2005         2006         2005
                        -----------  -----------  -----------  -----------
NET REVENUES:
GAAP net revenues       $ 1,262,073  $ 1,055,864  $ 2,521,159  $ 1,755,806
   Fair value
    adjustment to
    Veritas deferred
    revenue             (A)  12,985      136,280       35,267      136,280
   Veritas net revenue  (B)       -            -            -      559,258
                        -----------  -----------  -----------  -----------
Non-GAAP net revenue    $ 1,275,058  $ 1,192,144  $ 2,556,426  $ 2,451,344
                        ===========  ===========  ===========  ===========

NET INCOME (LOSS):
   GAAP net income:     $   123,434  $  (251,328) $   218,225  $   (52,695)
   Fair value
    adjustment to
    Veritas deferred
    revenue             (A)  12,985      136,280       35,267      136,280
   Amortization of
    acquired product
    rights              (C)  85,338      129,472      172,949      212,636
   Executive incentive
    bonuses             (D)   1,083        3,052        3,057        3,052
   Stock-based
    compensation        (E)  45,810       13,389       82,670       21,808
   Restructuring        (F)   6,220        1,452       19,478        4,926
   Integration          (G)       -        5,253            -       24,831
   Amortization of
    other intangible
    assets              (H)  50,479       48,309      101,093       96,812
   Patent settlement    (I)       -            -            -        2,200
   Gain on sale of
    strategic
    investments         (J)       -            -            -         (732)
   Proposed Veritas SEC
    legal settlement    (K)       -            -            -       30,000
   Acquired in-process
    research and
    development         (L)       -      284,000            -      284,000
   Gain on sale of
    building            (M) (16,768)           -      (16,768)           -
   Income tax effect on
    above items         (N) (49,868)     (97,107)    (109,557)    (166,225)
   Veritas net loss     (O)       -            -            -      (13,492)
                        -----------  -----------  -----------  -----------
Non-GAAP net income     $   258,713  $   272,772  $   506,414  $   583,401
                        ===========  ===========  ===========  ===========

NET INCOME (LOSS) PER
 SHARE - DILUTED:
GAAP net income (loss)
 per share              $      0.12  $     (0.21) $      0.21  $     (0.06)
   Stock-based
    compensation
    adjustment per
    share               (E)    0.04         0.01         0.07         0.02
   Other non-GAAP
    adjustments per
    share                      0.10         0.43         0.22         0.64
                        -----------  -----------  -----------  -----------
Non-GAAP net income per
 share                  $      0.26  $      0.23  $      0.50  $      0.60
                        ===========  ===========  ===========  ===========

SHARES USED TO COMPUTE
 NET INCOME PER SHARE -
 DILUTED:
GAAP Shares used to
 compute net income per
 share                      987,916    1,172,130    1,018,427      941,727
  Additional Non-GAAP
   diluted shares*                -       32,922            -       29,315
                        -----------  -----------  -----------  -----------
 Non-GAAP Shares used
  to compute net income
  per share                 987,916    1,205,052    1,018,427      971,042
                        ===========  ===========  ===========  ===========



* Excluded from the shares used to compute the dilutive GAAP net loss per
  share because the effect was antidilutive.

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.

(C) 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 and six months ended September
30, 2006 and 2005, executive incentive bonuses were allocated as follows:


                            Three Months Ended       Six Months Ended
                               September 30,           September 30,
                            -------------------     ------------------
                              2006        2005        2006        2005
                            -------     -------     -------     -------
                                          (in thousands)
Sales and marketing         $   536     $   770     $ 1,213     $   770
Research and development        380         757       1,244         757
General and administrative      167       1,525         600       1,525
                            -------     -------     -------     -------
  Total executive incentive
   bonuses                  $ 1,083     $ 3,052     $ 3,057     $ 3,052
                            =======     =======     =======     =======

(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 and six months ended
September 30, 2006 and 2005, stock-based compensation was allocated as
follows:


                       Three months   Six months
                          ended         ended
                       September 30, September 30,
                       ------------  ------------
                           2006          2006
                       ------------  ------------
                             (in thousands)
Cost of revenues       $      5,182  $      9,164
Sales and marketing          17,105        31,292
Research and development     16,907        31,004
General and
 administrative               6,616        11,210
                       ------------  ------------
  Total stock-based
   compensation
   expenses            $     45,810  $     82,670
                       ============  ============


                          Three months ended         Six months ended
                            September 30,              September 30,
                                2005                       2005
                      -------------------------- --------------------------
                      Symantec Veritas   Total   Symantec Veritas   Total
                      -------- -------- -------- -------- -------- --------
                            (in thousands)             (In thousands)
Cost of revenues      $      - $      - $      - $      - $    901 $    901
Sales and marketing      4,457        -    4,457    5,263    1,482    6,745
Research and
 development             6,763        -    6,763    7,868    2,062    9,930
General and
 administrative          2,169        -    2,169    3,043    1,189    4,232
                      -------- -------- -------- -------- -------- --------
   Total stock-based
    compensation
    expenses          $ 13,389 $      - $ 13,389 $ 16,174 $  5,634 $ 21,808
                      ======== ======== ======== ======== ======== ========

(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 the integration activities for our
acquisition of Veritas.  These expenses arose from a specific prior
acquisition and we believe they are not directly related to the operation
of our business. Operating expenses for the three and six months ended
September 30, 2006 did not include integration expenses. For the three and
six months ended September 30, 2005, integration expenses were allocated
as follows:

                          Three months ended         Six months ended
                            September 30,              September 30,
                                2005                       2005
                      -------------------------- --------------------------
                      Symantec Veritas   Total   Symantec Veritas   Total
                      -------- -------- -------- -------- -------- --------
                            (in thousands)             (in thousands)
Cost of revenues      $      - $      - $      - $      - $  1,057 $  1,057
Sales and marketing        780        -      780    2,337    3,094    5,431
Research and
 development               383        -      383    1,157    2,700    3,857
General and
 administrative          4,090        -    4,090    9,660    4,826   14,486
                      -------- -------- -------- -------- -------- --------
   Total integration
    included in
    operating
    expenses          $  5,253 $      - $  5,253 $ 13,154 $ 11,677 $ 24,831
                      ======== ======== ======== ======== ======== ========

(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) Proposed Veritas SEC legal settlement. Prior to our acquisition of
Veritas, Veritas accrued a $30 million penalty based on settlement
discussions with the SEC.

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

(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 income. This amount represents Veritas net income for the
three months ended March 31, 2005. We include Veritas net income 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, except per share data)
                             (Unaudited)


                                     Three Months Ended September 30, 2006
                                     --------------------------------------
                                         GAAP       Non-GAAP
                                       Symantec   Adjustments    Non-GAAP
                                     ------------ ------------ ------------
Net Revenues                         $  1,262,073 $   12,985 A $  1,275,058

Revenue By Segment:
Security and Data Management         $    479,734 $    3,829 A $    483,563
Data Center Management               $    332,945 $    9,156 A $    342,101
Services                             $     54,626 $        - A $     54,626
Consumer                             $    394,702 $        - A $    394,702
Other                                $         66 $        - A $         66

Revenue by Geography:
Americas (*)                         $    697,128 $    9,072 A $    706,200
EMEA                                 $    387,254 $    3,166 A $    390,420
Asia Pacific/Japan                   $    177,691 $      747 A $    178,438

Total U.S. Revenue                   $    629,255 $    8,660 A $    637,915
Total International Revenue          $    632,818 $    4,325 A $    637,143



                                     Three Months Ended September 30, 2005
                                     -------------------------------------
                                         GAAP       Non-GAAP
                                       Symantec   Adjustments    Non-GAAP
                                     -----------  ------------ -----------
Net Revenues                         $ 1,055,864  $  136,280 A $ 1,192,144

Revenue By Segment:
Security and Data Management         $   430,969  $   46,509 A $   477,478
Data Center Management               $   229,498  $   86,470 A $   315,968
Services                             $    44,470  $    3,300 A $    47,770
Consumer                             $   350,933  $        - A $   350,933
Other                                $        (6) $        1 A $        (5)

Revenue by Geography:
Americas (*)                         $   576,559  $   95,047 A $   671,606
EMEA                                 $   329,157  $   31,115 A $   360,272
Asia Pacific/Japan                   $   150,148  $   10,118 A $   160,266

Total U.S. Revenue                   $   523,920  $   89,853 A $   613,773
Total International Revenue          $   531,944  $   46,427 A $   578,371

   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.

Footnotes:

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)


                                                      Sept. 30,   Sept. 30,
                                                        2006        2005
                                                    ----------- -----------
Deferred revenue reconciliation
GAAP deferred revenue                               $ 2,228,018 $ 1,512,009

   Add back:
   Fair value adjustment to Veritas deferred
    revenue (*)                                          22,263     226,337
                                                    ----------- -----------
Non-GAAP deferred revenue (**)                      $ 2,250,281 $ 1,738,346
                                                    =========== ===========

(*) 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.

(**) 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.



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


                                             Q3 FY'07           FY'07
                                        ----------------- -----------------
Revenue reconciliation (in billions)
GAAP revenue range                      $ 1.315 - $ 1.345 $ 5.100 - $ 5.300
                                        ================= =================
   Add back:
   Fair value adjustment to Veritas
    deferred revenue (1)                $           0.010 $           0.100
                                        ----------------- -----------------
Non-GAAP revenue range*                 $ 1.325 - $ 1.355 $ 5.200 - $ 5.400
                                        ================= =================


Earnings per share reconciliation
GAAP earnings per share range           $   0.14 - $ 0.15 $   0.46 - $ 0.56
                                        ================= =================
   Add back:
   Stock-based compensation (2)         $            0.04 $            0.12
   Fair value adjustment to Veritas
    deferred revenue and amortization   $            0.11 $            0.48
    of acquired product rights and
    other intangible assets  (1,3)
                                        ----------------- -----------------
Non-GAAP earnings per share range*      $   0.29 - $ 0.30 $   1.06 - $ 1.16
                                        ================= =================

*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) Stock-based compensation.  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.

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

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