This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Symantec CEO Tells Turnaround Tale

MOUNTAIN VIEW, Calif. ( TheStreet -- Symantec (SYMC) CEO Enrique Salem has overseen an impressive turnaround at the software maker, which reported strong third-quarter results on Wednesday.

Weighed down by execution issues until just a couple of years ago, Symantec has now met or exceeded Wall Street's revenue and earnings estimates for the last six quarters. Shares of the software specialist, which competes with EMC (EMC - Get Report) in storage and McAfee, now part of Intel (INTC - Get Report), in security, have climbed almost 8% this year.

Symantec CEO Enrique Salem

In an interview, Salem cited strength in data-loss prevention, authentication, managed security services and backup offerings as boosting the third-quarter results. "Those four areas continue to do well for us," he explained. "We're executing very well with our security portfolio."

As for Symantec's broader turnaround, the CEO attributed the improved performance to two key initiatives; an intense marketing focus on data and identity protection and a revamped sales strategy.

"Sales execution is something that we have absolutely improved," he explained. "We're able to do a great job of cross-selling our portfolio; [during the third quarter] 41% of all sales over $1 million included products from both segments -- security and storage."

Thanks to its cross-selling efforts, Symantec's large deals also hit an all-time high during the quarter. In the enterprise side of its business, the company clinched 674 transactions valued at more than $300,000, a hike of 24% compared to the prior year's quarter. Some 78% of these transactions included multiple products.

The execution story certainly resonated with analysts, who put out a flurry of research notes Thursday.

"The company continues to build a solid track record of being able to more consistently deliver positive results," noted Todd Weller, an analyst at Stifel Nicolaus, who has a buy rating on Symantec. "We believe this was evidenced by continued solid growth in large transactions marked by transactions of over $300,000."

"Overall, it appears that the company is seeing improved execution in the field, an encouraging trend we have seen play out over the last year," added Daniel Ives, an analyst at FBR Capital Markets. "Although the macro environment remains choppy, we believe Symantec is poised to see improved deal flow on the heels of resilient security growth and good execution." This trend bodes well for healthy bookings growth for the next few quarters, he added.

Ives maintained his market outperform rating on the company's stock.

There is, however, clearly still room for improvement over in Mountain View. Revenue from Symantec's Storage and Availability Management Business, for example, was down 10% year over year, although analysts see sufficient strength elsewhere in the company's product portfolio.

"While the storage management business continues to be a drag on results (down 10% year over year), the company generally executed well, saw stability in its Consumer segment and drove strong results in its Security & Compliance business, which was up 17% year over year," noted Pat Walravens, an analyst at JMP Securities.

Walravens also maintained his market outperform rating on Symantec.

Symantec's board also authorized a $1 billion share-repurchase program after market close on Wednesday.

Interested in more on Symantec? See TheStreet Ratings' report card for this stock.

-- Written by James Rogers in New York

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
EMC $26.11 0.00%
INTC $30.28 0.00%
SYMC $16.64 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs